What is Stock Market – Basics Of Stock Market.
Welcome to the first blog of this series. I am not any financial advisor neither I am super experienced but I have learned a lot in the last few years in my trading and Investing carrier and I am here to share everything I know about.
The stock market refers to the collection of markets and exchanges where buying and selling of stocks and other financial instruments take place. The Stock market serves as the platform where numerous buyers and sellers meet, interact and transact.
A Few of the largest stock markets around the world are New York Stock Exchange (NYSE), NASDAQ, Shanghai Stock Exchange, Indian Stock Market i.e., National Stock exchange (NSE) and Bombay stock exchange (BSE) – The last one is basically where I Trade and Invest.
Stock markets and stock exchanges are two words that people interchangeably use, the basic is that the latter is the subset of former and stock exchanges are the place where trading and investing can be performed. All the stock exchanges in the country make a stock market. (Investopedia.com)
In earlier days trading as well as investing was to be done on the floor via person-to-person but today everything has been done electronically through various modes. Many online brokers help you to open a Demat as well as a Brokerage account (In coming blogs I’ll discuss about what are the different kinds of brokers so that you can start with opening an account), brokers provide you a no or low-risk platforms to trade but to keep an eye over the stock market, these brokers and their functioning in India the Securities and exchange board of India (SEBI) is the regulator.
In a simple language stock market is a place for companies to raise funds for their growth by selling shares to the public for a specified amount which the people can hold for as long as the company works and sell whenever they reach their desired profit.
Share market as comes with profit as well risk of losing money.
The Stock market can be further divided as:
– Primary market – It refers to the market where securities like IPOs are created i.e., shares are issued for the first time.
– Secondary market – Here the securities are traded among retail traders & investors, this is where the price of stocks is being controlled.
In order to buy the shares of the company you cannot just call the company to buy their shares, you need the assistance of stockbrokers. In India some of the brokers are Zerodha, Upstox and Angel broking, etc.
I personally use Zerodha for trading and it’s one of the best for a beginner to start with – By Clicking Here you can directly Open an Account in Zerodha
The Trading hours in the Indian stock market are from 9:15 a.m. to 3:30 p.m. from Monday to Friday and unless it’s a national holiday.
The stock market consists of various segments such –
- Cash / Equity
- Derivatives (Futures & Options).
(In upcoming blogs and videos, we’ll cover every segment in detail).
I hope this basic introduction was clear for everyone. Stock market is a vast topic, in my experience knowledge of everything can be harmful as we move further. Thus, for a person who wishes to know about and start with basics can definitely read our upcoming blogs on finance and self-development.