Stock Market Basics FAQs

what do you mean by Securities Transaction tax?

Securities Transaction Tax (STT), is a tax that is imposed on transactions done in stock exchanges. Securities Transaction Tax applies to the purchase or sale equity shares, equity-oriented mutual funds, and equity-oriented mutual funds. The current STT for the buying …


Define a broker.

A broker is an enrolled member of a stock exchange and is allowed to trade equity securities in that exchange. A broker is an enrolled member of the exchange, and is registered with SEBI. A broker, or an intermediary person …


Does stock market open on Saturday?

Stock markets in India are closed on Saturdays. Also, the market is closed on Sundays and holidays. The Bombay Stock Exchange (BSE), and the National Stock Exchange (NSE), India's largest exchanges, are closed on Saturday for trading. Orders placed on …


Does option trading require Demat account?

Options contracts in India can only be settled in cash. There are no deliveries. All profits and losses are settled in cash. Your account will credit the profit and your trade value will be deducted. A trader does not need …


How many types of derivatives are there?

There are four types of derivative contracts. Futures contracts Futures contracts are traded on NSE or BSE exchanges and can be used to purchase or sell the underlying at a specific price or at a particular date. Forward contractsForwards can …


Are Thematic Investing and Mutual funds different?

Yes they both are different.Thematic Investing is a way to invest in a portfolio that includes company shares, rather than individual stocks. Although Thematic Investing may be a new concept, it is still very popular. However, there are many differences …


What do you mean by 'Thematic investing'?

Thematic investing is the process of making investment decisions based on emerging themes. These themes are determined by looking at the intersections of shifting economics. Demographics, technologies, and regulatory mandates. It's based on trends and not on past performance or …


What are Opening and Closing hour, Trading hours for NSE & BSE?

NSE / BSE Normal Market Opening Hour: 09,15 hours NSE/BSE Normal Market Closing Times: 15 :30 hours Stock trading at the Bombay Stock Exchange and National Stock Exchange (NSE), is still possible every weekday from Monday through Friday, 6.15 p.m. …


On Saturday & Sunday, are NSE & BSE open?

The Bombay Stock Exchange and National Stock Exchange are not open on Saturdays and Sundays , except for when the exchange announces any special trading sessions like To test new technology platforms or Diwali Muhurat Trading. If they are not …


How is BSE different from NSE?

BSE (Bombay Stock Exchange), and NSE (National Stock Exchange), are the two most important stock exchanges in India. Key Differences: BSE, which was established in July 1875, is more recent than NSE (which was established in Nov 1992). According to …


How stockholder & stakeholder can be differentiated?

Stockholder (Shareholder) vs. Stakeholder While a shareholder is always considered a stakeholder, a stakeholder may not be the shareholder of a company. Shareholders have at least one stock and an interest in stock performance. Stakeholders, on the other hand, have …


Differentiate between Private ltd and Public limited company.

Private Limited Company Private limited companies are privately owned by a select group of people, such as a family. They cannot offer shares in the company to the general public. However, they can still operate as a single director. Private …


What are NSE/BSE?

BSE (Bombay Stock Exchange), and NSE [National Stock Exchange] are two of the largest stock exchanges where shares of more than 5000 companies can be traded. BSE / NSE is a platform that allows investors to trade and buy/sell shares …


What is the reason behind the Ups and Downs in the share price?

In simple words the answer could be "Demand & Supply". The share will rise if there's more demand for shares of company companies and less people willing to buy them. The share will fall if there is an inordinate amount …


How can I obtain the ICICI Direct Stock Code of the stock that will be listed two days later? This will allow me to place an order before the market opens on the day of the listing.

Below are the steps to obtain the Stock Code for the stock prior to it being listed on the stock exchange. Log in to ICICI Direct. Stock quotes will be available under the trade & invest tab. Or Click on …


While processing Bonus share,what is a 'No deliver'/Book closer?

The company announces bonus shares when it decides to issue them. It also informs stock exchanges that the stock is listed. Stock exchanges determine the stock's 'No Delivery Period' to ensure that the bonus shares are received as soon as …


What do you mean by 'face value'?

The face value is an arbitrarily determined value for securities by the issuer in order to analyze the growth and actual needs of the balance sheets. If the company has a requirement for Rs 20 lakh, it may decide that …


Define Bonus share & its record date.

The company will give bonus shares to existing shareholders. The bonus shares are issued according to the number of shares that an investor holds. If a company offers 1 to 5, it means that a share holder gets 1 share …


Differentiate between Futures and Options.

OPTION FUTURE CONTRACTS Options are a type derivative that derives value from an underlying instrument Future Contracts are a type of derivative that derives value from an underlying instrument. The contract does not give the investor any obligation to sell …


What do you mean by MID CAP ?

The current market categorizes companies into large-cap, small-cap, and mid-cap categories. Capitalization of a company is determined by its market capitalization multiplied with the current share price. The mid-cap market capitalization is between Rs 5,000 and 20,000cr. In terms of …