Stock Market and SEBI Notes for SSC Exams
Rahul Kumar
SSC Exam Expert & Content Editor
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PDF Notes: Stock Market and SEBI Notes for SSC Exams
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The stock market is where shares of companies are bought and sold. SEBI is the regulator that protects investors. SSC finance papers ask about indices, stock exchanges and basic market terms.
Markets
| Market | Meaning | Example |
|---|---|---|
| Primary market | Companies issue new shares to the public | IPO (Initial Public Offering) |
| Secondary market | Existing shares are traded among investors | Trading on BSE and NSE |
Stock Exchanges and Indices
- BSE (Bombay Stock Exchange), established in 1875, is the oldest exchange in Asia. Its index is the Sensex of 30 companies.
- NSE (National Stock Exchange) started in 1992 and began trading in 1994. Its index is the Nifty 50.
- Both are in Mumbai.
- Shares are held electronically in a demat account.
Market Terms
| Term | Meaning |
|---|---|
| Bull market | Prices of shares are rising |
| Bear market | Prices of shares are falling |
| Dividend | Share of profit given to shareholders |
| IPO | First public sale of shares by a company |
| Blue chip | Shares of large, stable companies |
SEBI
- SEBI is the Securities and Exchange Board of India. It was set up in 1988 and got statutory powers through the SEBI Act, 1992.
- Its headquarters is in Mumbai.
- Functions: protect investors, regulate stock exchanges and brokers, prevent insider trading and regulate mutual funds.
Quick Tips
- Remember: Sensex has 30 stocks and Nifty has 50.
- BSE is the oldest. NSE is the largest by trading volume.
- SEBI regulates the capital market. RBI regulates banks.
- IPO is part of the primary market.
Quick Revision Points
- SEBI got statutory powers in 1992.
- SEBI headquarters is in Mumbai.
- Sensex has 30 companies.
- Nifty has 50 companies.
- BSE was established in 1875.
- IPO belongs to the primary market.
Practice Questions With Answers
- In which year did SEBI get statutory status?
Answer: 1992 - How many companies are included in the Sensex?
Answer: 30 - How many companies are included in the Nifty?
Answer: 50 - Where is the SEBI headquarters?
Answer: Mumbai - Which is the oldest stock exchange in Asia?
Answer: BSE - What is a bull market?
Answer: A market in which prices are rising - An IPO is a part of which market?
Answer: Primary market - What does a demat account hold?
Answer: Shares in electronic form
How to Practise This Chapter
Practise 10 questions every day and write the steps on paper. Then attempt timed sets from our practice papers and the previous year papers page. See all topics on the Finance and Economics notes page.
Frequently Asked Questions
What is SEBI?
The regulator of the securities market in India.
What is the Sensex?
The benchmark index of the BSE based on 30 large companies.
What is the Nifty 50?
The benchmark index of the NSE based on 50 companies.
What is an IPO?
The first time a company sells its shares to the public.
What is the difference between primary and secondary markets?
Primary is for new issues and secondary is for trading existing shares.
What is a demat account?
An account that holds shares in electronic form.
What is a dividend?
A part of the profit paid to shareholders.
What is insider trading?
Trading based on non-public price-sensitive information, which is illegal.
Who regulates banks?
The Reserve Bank of India, not SEBI.
What is a bear market?
A falling market.
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Rahul Kumar
SSC Exam Expert & Content Editor
Rahul is a senior SSC exam strategist with 8+ years of experience helping aspirants crack CGL, CHSL and MTS exams. He writes in-depth notification breakdowns, exam pattern guides and preparation strategies.