What Makes Stock Prices Go Up and Down?08 Jan 2016 | 12:45PM
The stock market is where investors can trade in different financial instruments, such as shares, bonds and derivatives. The stock exchange is a mediator that allows buying/selling of shares.
In India, the two primary stock exchanges are the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Further, there is a primary market where companies list their shares for the first time. Secondary markets allow investors to buy and sell shares issued during the initial public offering (IPO).
Few simple points to know about how the Stock Market works:
Before you learn the basics of trade, it is essential to know about how does stock market work? Here is its working explained in detail:
The stock exchange provides a platform for trading in financial products. The companies (listing their shares), brokers, traders, and investors must register with SEBI and the exchange (BSE, NSE, or regional exchanges) before trading.
Historically, this procedure was manual and thus time-consuming and cumbersome. However, with online trading platforms, the entire procedure of matching buyers and sellers is done through the internet. This has reduced the transaction time to a few minutes.
Nonetheless, there are thousands of potential investors and converging all of them in one location is impossible. Stock exchanges and broking agencies play a crucial role in this situation.
Following the stock market basics and understanding how it works will help make investing profitable and prevent investors from taking unnecessary risks.
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