Looking to understand all about what is stock market? Here is your answer. The stock market is an established organisation wherein investors connect to buy and sell companies- these companies are listed in the stock exchange. When you purchase a particular company stock by default, you become a shareowner of the company. The companies range from small to mid to large capital share, so you have an array of companies and prices to choose.
This article will take you through the depths of the stock market and the spectrum of terminologies with their explanations, so you will get a better understanding to dabble in the stock market.
To begin with, the Stock Exchange in India are two that is the Bombay Stock Exchange -BSE where the trading of companies initially began and later the National Stock Exchange -NSE was incorporated with automated systems in place. Today both these exchanges dominate the Indian stock market, without which you cannot buy and sell shares. They are the premier stock exchanges of India. The stock exchange meaning is relatively straightforward; wherein once new securities are traded that is sold in the primary market, are then traded in the secondary market, where investors buy and sell shares from one another at the prevailing market price. There is a regulatory authority that monitors and manages the stock exchanges. In India, both the primary and secondary markets are governed by the Security and Exchange Board of India- SEBI. We’ll come to the insight of the primary and secondary market in just a bit.
What is Share Market
By definition, it is a market place where trading of shares of public listed companies is carried out daily. The primary market is where the companies float the shares to the public; the extending of shares in the open market is known as Initial Public Offering- IPO, mainly for market capitalisation. Some stockbrokers are registered with the stock exchanges, to trade company stocks and other types of securities. A share may be bought or sold only once listed on the stock exchange. Thus, the share market meaning is a place where buyers and sellers come together only for trading stocks.