LAW DECODED

I am quite sure that most of you must have heard this name NIFTY or SENSEX whenever you read stock market-related news and few of you who invest in the stock market always keep your hear beat up and down with NIFTY up and down movement. And this is quite logical because after all, you have invested your hard-earned money into an unknown company. But if you among those who have not invested even a single penny in the stock market then you you do not need to worry.  Having said that I would say people do get panic when NIFTY falls. They start linking it with poor economic performance but measuring economic conditions solely on the basis of NIFTY or SENSEX is not a wise thing to do. What is NIFTY in the Stock Market? It is just an Index of the top 50 companies share prices which are listed on the National Stock Exchange (NSE) . In simple terms, NIFTY is made up of these 50 companies and whenever there is fluctuation even in single company share price NIFTY moves acco

INTRODUCTION Securities market always engages the attention of not only of the government but the general public as well. The Securities market is flooded with so many participants such as brokers, members, merchant bankers, and the general public, of course. Involvements of such large participants are also due to the significant role of share market in the economy, and therefore Securities market is also considered as a barometer of the economy’s financial health. Having said, one must know that the Indices in the Securities market such as Nifty or Sensex which comprises of most of the blue chip companies, which only represent shares which are active in trading, meaning thereby those shares having buy order or sell order (In technical terms, this is called high trading volume). These kinds of shares provide more liquidity to their investors. “Liquidity of stock means you can easily sell your stock because of large by order” Unfortunately, it is seen that despite having