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Stock Marketing-4: Regulators of Capital Market

Regulators, the Guardians of Capital Market Indian Capital Markets are regulated & monitored by the Ministry of Finance, the Securities & Exchange Board of India (SEBI), and the Reserve Bank of India (RBI). Ministry of Finance It regulates the Department of Economic Affairs - Capital Markets Division. This division is responsible for formulating the policies related to the orderly growth & development of the securities markets (i.e., shares, debt and derivatives) as well as protecting the interest of investors.  Responsibility: Institutional reforms in the securities markets. Building regulatory & market institutions. Strengthening investor protection mechanism. Providing an efficient legislative framework for securities & markets.  SEBI (Securities Exchange Board of India) SEBI Act 1992 regulates the functioning of this independent body in governing the Indian stock exchanges.  Functions of SEBI: It checks price rigging or price fixing. It prohibits ...

Stock Marketing-1: Introduction To Stock Market

Stock Market & Stock Exchange The stock market is where publicly traded companies' shares are listed. It is a virtual market, not a physical market. The stock market is a set of exchanges.  The stock exchange is the place where the trading of shares takes place. Companies pull money from the stock market in which people invest their money to earn returns from their savings. We can also sell the shares back in the share market when share prices are up and earn a profit. The stock market is full of risks, as the price of shares changes rapidly.  Shares/Stocks  are the units of equity ownership in a corporation, which means if we buy more shares of the company then we have more fraction of ownership of the company, and if we have less number of shares we have less ownership in that company. There is no guarantee of profit when we buy stocks which makes stock one of the most risky investments . If a company does not perform well its stock can fall in price and investors...

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