Stock Market Basics FAQs

How many types of derivatives are there?

There are four types of derivative contracts.

  • Futures contracts Futures contracts are traded on NSE or BSE exchanges and can be used to purchase or sell the underlying at a specific price or at a particular date.
  • Forward contractsForwards can be traded on OTC markets. They are a custom agreement between two people to purchase or sell underlying assets at a specific date.
  • Options contracts:Options allows you to purchase or sell the underlying asset at a specific date and price. Options can be traded on OTC and BSE and NSE exchanges.
  • SwapsThis is a contract between two financial institutions that allows them to exchange future cash flows. Swaps are not derived from any underlying instrument. These contracts can only be traded on OTC markets.

Who is a Stock Broker?

What does Securities Transaction tax mean?

How can I get a duplicate share certificate if I have lost the XYZ company's share certificate?

What does EPS (Earning Per share) mean?

Define P/E ratio.

What does ISIN mean?

Can we transfer funds from equity a/c to commodity a/c directly and vice -versa

How is SENSEX calculated?

What do you mean by MID CAP ?

Differentiate between Futures and Options.

Define Bonus share & its record date.

What do you mean by 'face value'?

While processing Bonus share,what is a 'No deliver'/Book closer?

How can I obtain the ICICI Direct Stock Code of the stock that will be listed two days later? This will allow me to place an order before the market opens on the day of the listing.

What is the reason behind the Ups and Downs in the share price?

What are NSE/BSE?

Differentiate between Private ltd and Public limited company.

How stockholder & stakeholder can be differentiated?

How is BSE different from NSE?

On Saturday & Sunday, are NSE & BSE open?