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What is the Stock Market? — Beginner Guide
Keywords: Stock Market • Shares • Investing • Index • Market Cap
Introduction — start at the very beginning
This page explains key terms and then shows an interactive index calculator. Every arithmetic step is visible so absolute beginners can follow the math.
Basic terms
Stock / Share — a piece of ownership in a company.
Price — current value of one share (e.g., ₹500).
Shares outstanding — total number of shares issued by a company.
Market cap = Price × Shares outstanding (we use crores for shares in this demo).
Market Cap = Price per Share × Shares Outstanding
What is an index?
A single number summarizing performance of a group of stocks. Simplified formula:
Index = (Current total market cap / Base total market cap) × Base index value
Interactive — Champak 5 Index
| Company | Price (₹) | Shares (cr) | Market Cap (₹ cr) | Weight |
|---|
Base total market cap
Base index value
Current Total Market Cap
—
Champak 5 Index
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Formula
Index = (Current Total / Base Total) × Base Index
Step-by-step (automatic):
1) Market caps:
2) Total:
—
3) Formula with numbers:
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Explanation — why steps matter
Larger companies (by market cap) have bigger effect on the index. The base total and base index value let us show a friendly number (like 100) instead of a very large raw total.
More & Coming next
Next
History of NSE, BSE & SEBI
In the next post: how Indian markets evolved and how SEBI protects investors.
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