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What is Share Market?

In a share market, shares are bought and sold. The stock market is a share market, however besides shares of companies, other instruments like bonds, mutual funds and derivative contracts too are traded in the stock market.

There are two kinds of share markets:
Primary share market

Secondary share market

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Primary share market
A company enters the primary market to raise funds. It is in the primary market that a company gets registered to issue shares to the public and raise money. Companies generally get listed on the stock exchange through the primary market route. In case a company is selling shares for the first time, it is called an Initial Public Offering or IPO, after which the company becomes public. While going for an IPO, the company has to provide  details about itself, its financials, it promoters, its businesses, stocks being issued, price band and so on. 

Secondary share market
In the secondary market, investors trade already listed securities by buying and selling them. Secondary market transactions are transactions where one investor buys shares from another at the prevailing price. Normally, these transactions are conducted through a broker. Secondary market offers investors a chance to sell all its shares and exit the financial market.

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Stock exchanges list shares of common equity as well as other security types, e.g. corporate bonds and convertible bonds.

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What is Stock Exchange?

A stock exchange is an exchange (or bourse) where stock brokers and traders can buy and sell shares of stock, bonds, and other securities. Many large companies have their stocks listed on a stock exchange. This makes the stock more liquid and thus more attractive to many investors. The exchange may also act as a guarantor of settlement. Other stocks may be traded "over the counter" (OTC), that is, through a dealer. Some large companies will have their stock listed on more than one exchange in different countries, so as to attract international investors.

Stock exchanges may also cover other types of securities, such as fixed interest securities (bonds) or (less frequently) derivatives which are more likely to be traded OTC.

What is Nifty and Sensex?

The Sensex and Nifty are "indices of a stock market". There are many other indices other than these indices.

A stock market is a place where you can sell or buy shares or stocks of companies.

An index is basically an indicator which gives us a general idea about stocks going up or down.
The Sensex is an indicator of all the major companies listed on BSE(Bombay Stock Exchange) which is situated at Bombay. The Nifty is an indicator of all the major companies listed on NSE (National Stock Exchange) which is situated at Delhi.

The Sensex goes up when prices of stock of major companies on BSE goes up and it goes down when the latter goes down. The same condition applies to Nifty.

These two are the major stock exchanges in the country. Most of the stock trading in the country is done though the BSE & the NSE.

What is the difference between BSE and NSE?

The two largest and most prominent stock exchanges in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). While the BSE has the distinction of being the oldest stock exchange in Asia, established in 1875, the NSE has quickly grown to prominence since its creation in 1992. While these two markets dominate in India there are clear differences between the two.

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​The National Stock Exchange of India was promoted by leading  financial institutions at the behest of the Government of India, and was  incorporated in November 1992 as a tax-paying company. In April 1993,  it was recognized as a stock exchange under the Securities Contracts  (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt  Market (WDM) segment in June 1994. The Capital Market (Equities) segment  of the NSE commenced operations in November 1994, while operations in  the Derivatives segment commenced in June 2000.

Bombay Stock Exchange Limited is the oldest stock exchange in  Asia with a rich heritage. Popularly known as "BSE", it was established  as "The Native Share & Stock Brokers Association" in 1875. It was  the first stock exchange in the country to obtain permanent recognition  in 1956 from the Government of India under the Securities Contracts  (Regulation) Act, 1956.  Earlier an Association of Persons (AOP), the Exchange is now a  demutualised and corporatised entity incorporated under the provisions  of the Companies Act, 1956, pursuant to the BSE (Corporatisation and  Demutualisation) Scheme, 2005 notified by the Securities and Exchange  Board of India (SEBI). Bombay Stock Exchange Limited received its  Certificate of Incorporation on 8th August, 2005 and Certificate of  Commencement of Business on 12th August, 2005. The Exchange has  succeeded the business and operations of BSE on going concern basis and  its recognition as an Exchange has been continued by SEBI.

What is the difference between Options and Futures?

The main fundamental difference between options and futures lies in the obligations they put on their buyers and sellers. An option gives the buyer the right, but not the obligation to buy (or sell) a certain asset at a specific price at any time during the life of the contract. A futures contract gives the buyer the obligation to purchase a specific asset, and the seller to sell and deliver that asset at a specific future date, unless the holder's position is closed prior to expiration.

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[Futures may be great for index and commodities trading, but options are the preferred securities for equities. Investopedia's Options for Beginners Course provides a great introduction to options and how they can be used for hedging or speculation.]

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