share market

A share market is where the shares are issued or traded and the primary difference with the stock market is that the stock market permits trade in bonds, mutual funds, derivatives, and shares. On the other hand, a share market only allows the trading of shares.

In India, Sensex and Nifty are the two most important indices. Nifty stands for National Stock Exchange Fifty, which is represented by the Nifty 50 index. Similarly, Sensex is the benchmark index of the Bombay Stock Exchange (BSE).

Sensex is a collection of the top 30 stocks listed on the BSE by way of market capitalisation while Nifty is a collection of the top 500 stocks listed on the NSE.

The Nifty calculation takes place as per the free-float market capitalisation weighted methodology. However, during its initial years, the Bombay Stock Exchange traded as per a weighted market capitalisation method. It was only in 2003 that Sensex migrated to the prior method.

The Securities and Exchange Board of India (Sebi) is the securities market regulator to oversee any fraudulent transactions in the Indian stock market.

There are 2 types of stock markets: Primary Market and Secondary Market. Trading is the process of buying or selling shares in a company.