Introduction to Stock Market

Introduction to Stock Market –

As the name says, stock market is a market for different stocks (or equity). Let’s look at it as a shop where you will go to buy the stock and sell them.

To understand it better with an example of the daily grocery items that you will shop for. All the sellers gather at a common place to sell their product and buyers will also go there in order to get the complete range of the products to select from. For some reasons, you will not go looking across the town for a particular product or seller; similarly, if you are looking to buy the shares of say TCS, you can’t go to the company directly. Besides, it can limit your choices to opposite from. After all it is your hard-earned money, so you need to make the wise choice on which product or shares to buy.

So for you to make most of your hard-earned money and seller wants the best price, both of you have one common platform of ‘stock market. Electronically stock exchange gets your ‘buy request,’ so that it can match with the investors who are looking to sell this. For instance, you are keen to buy 400 shares of Maruti, and what stock market will do is, it will help you to match the order collectively with 2 sellers selling out 150, 200 or 50 shares.

India Stock Exchange –

In India, there are two important stock exchanges, one is Bombay Stock Exchange and another one is National Stock Exchange. Both these stock exchange make up the vast scene in India. Also, there are many regional stock exchanges such as Madras Stock Exchange, Calcutta Stock Exchange and many more, but the level of listings and trade are much lower than BSE and NSE.