Basic Knowledge of the Share Market 1. What is a Share Market? The share market, or stock market, is where shares of publicly listed companies are bought and sold. It's a marketplace for trading equity securities. 2. Types of Markets Primary Market: Where new securities are issued via Initial Public Offerings (IPOs). Secondary Market: Where existing shares are traded among investors. 3. Key Participants Investors: Individuals or institutions buying or selling stocks. Brokers: Intermediaries who execute buy/sell orders for investors. Regulators: Bodies like SEBI (India) that oversee and regulate the market. 4. Types of Shares Common Shares: Offer voting rights and dividends. Preferred Shares: Provide fixed dividends but usually lack voting rights. 5. Important Terms Index: Measures market performance (e.g., Nifty 50, Sensex). Market Capitalization: Total market value of a company’s shares. Dividend: A portion of a company’s earnings distributed to shareholders. PE Ratio: Price-to-