What is stock market ?
Stock market is the platform where stock ,also known as share or equity are bought and sold by investor. In simple word stock is nothing but a some amount of portion which is available publicly on stock exchange for trade. Investor can buy or sell in short term , long term , positional way. The stock price determined by company depends upon demand and supply (Bid) on the stock exchange.
How does it works ?
When any company registered on stock exchange i.e. NSE or BSE. It offers ownership of share to public. So investor can buy or sell that share on determined value. if share perform well then profit grow and share value will increase. if not , share value will decrease.
The share market has classified into two types
1.PRIMARY MARKET
Before a company gets listed in stock market, they enter the Primary market. The purpose of entering the primary market is to raise money and if the company is selling their shares for the first time, it’s known as the Initial Public Offering (IPO)
2.Secondary Market
Once the shares are sold in the primary market, they are then traded in the secondary market. The transactions in the secondary market, called trades occur in the stock exchange. Here, the investors buy and sell the shares amongst themselves at an agreed-upon price. Usually, a broker acts as an intermediary that facilitates such transactions
How to buy or sell stock ?
When any investor need to buy or sell stock ,then they need to register with broker which will charge fee for trading on exchange. So every investor who need to trade on exchange (Buy or Sell), they should have SEBI register broker to do trading. There are number of broker available in India.
What are the best broker in India ?
- Zerodha
- Angelone
- Upstock
- Grow
- Groww
- 5Paisa
- ICICI Direct
- Share khan
- HDFC Securities
- Motilal Oswal.
Who regulates stock market in India?
SEBI(Security and Exchange Board of India) has full authority to regulated all stock market. Its main objective is to protect the interests of investors in securities and to promote the development and regulation of the securities market in India. SEBI was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.
How many exchanges are available in India?
There are two exchange in India NSE(National Stock exchange) & BSE(Bombay Stock Exchange).
- NSE – National Stock Exchange of India Limited is one of the leading stock exchanges in India, based in Mumbai. NSE is under the ownership of various financial institutions such as banks and insurance companies.
- BSE – Bombay Stock Exchange is an Indian stock exchange which is located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roy Chand, a Kumauni businessman, it is the oldest stock exchange in Asia, and also the tenth oldest in the world.
Entering into the stock market trade, you need to open an account with any of the SEBI-approved brokers.
Please find the link for opening an account in Broker
1)Zerodha – https://zerodha.com/?c=AR3907&s=CONSOLE
2) Angelone – https://play.google.com/store/apps/details?id=com.msf.angelmobile&referrer=M30774LIP::rne_source=Earn_Rewards
3)UpStock – https://link.upstox.com/7j3Rb8WRcv6Pi3cK9
- Login into a broker account
- Search with the share name in the global search.
- Click on the Buy/Sell option which is either intraday or Equity in Console.
- Put the quantity that you want to buy/Sell.
- Click on Buy/Sell.
- Order will execute on the exchange, allocated share will be added to your depository account after settlement.
What are the Sensex and Nifty?
In India, there are two main stock markets called NSE and BSE. They use indexes to see how well the market is doing. The BSE uses Sensex and the NSE uses Nifty as their indexes.
The regular trading hours for these markets are from 9:15 AM to 3:30 PM, with a pre-opening session from 9:00 AM to 9:15 AM and a post-closing session from 3:30 PM to 4:00 PM. There are certain days when the markets are closed, such as holidays like Holi, Republic Day, and Eid. The stock markets are also closed on weekends.
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