Learn about book-closure/record date.

Book closure and record date is to know more exactly the shareholders of a company as on a given date.Book closure mean's closing of register of the names or investors in the records of a company. Companies announce book closure dates from time to time. The benefits of dividends, bonus issues, rights issue accruing to investors whose name appears on the company's records as on a given date, is known as the record date.

Any investor might purchase a share-cum-dividend, cum rights or cum bonus and may therefore expect to receive these benefits as the new shareholder. In order to receive this, the share has to be transferred in the investor's name, or he would stand deprived of the benefits. The buyer of such a share will be a loser. It is important for a buyer of a share to ensure that shares purchased at cum benefits prices are transferred before book-closure. It must be ensured that the price paid for the shares is ex-benefit and not cum benefit.

What is a contract note?

It is a note that describes the rate, date, time at which the trade was transacted (i.e. selling or buying in share's) and the brokerage rate. A contract note issued in the prescribed format establishes a legally enforceable relationship between the client and the member in respect of trades stated in the contract note. These are made in duplicate and the member and the client both keep a copy each. A client should receive the contract note within 24 hours of the executed trade.

Know about stock Exchange

Know about Stock Exchange

A place/platform where buyers and sellers come together to transact in stocks and shares. It may be a physical entity where brokers trade on a physical trading floor via an "open outcry" system or a virtual environment.
Now day's it work's through electronic trading system.
In Electronic trading Brokers can trade from their offices, using fully automated screen-based processes. All their workplaces are connected to a Stock Exchange's central computer via satellite using Very Small Aperture Terminus (VSATs)/Bolt system. The buying/selling orders placed by you through your brokers reach the Exchange's central computer and are matched electronically.

Stock Exchanges in India.

1) BSE i.e. Mumbai /Bombay stock Exchange .
2) NSE i.e. National Stock Exchange (NSE).
are the country's two leading Exchanges. There are 20 other regional Exchanges, connected via the Inter-Connected Stock Exchange (ICSE). The BSE and NSE allow nationwide trading via their VSAT systems.