Stock market refers to a collection of markets and exchanges where regular activities of buying, selling and issuing shares of publicly held companies take place.
Such financial activities are conducted through institutionalized formal exchanges or over the counter (OTC) marketplaces that operate under a defined set of regulations.
A single country or region may have a variety of stock trading venues that allow transactions in stocks and other types of securities. Although the terms stock market and stock exchange are used interchangeably, a stock exchange is often a subset of the stock market.
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Stock Exchange
If someone says that he trades in the stock market, it means that he buys or sells shares/equities on a share exchange, which is a part of the total stock market. Major US stock exchanges include the New York Stock Exchange (NYSE), NASDAQ, and the Chicago Board Options Exchange (CBOE).
India’s two major stock exchanges are the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE). Stock market or equity market, primarily for trading of stocks/equities, exchange traded funds (ETFs), corporate bonds Other financial securities and derivatives based on stocks, commodities and bonds are also traded in the stock market.
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Understanding the Stock Market
Today, where it is possible to purchase almost everything online, there is usually a designated market for each commodity. In short, the stock market provides a safe and regulated environment where market participants can transact in shares and other eligible financial instruments with confidence and zero to low operational risk.
Definition: It is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.
To invest in the share market, you need to open a Demat and trading account. That’s mandatory.
After that, log into your Demat and trading account and choose the shares you wish to buy and sell. Make sure you have the requisite funds in your account to buy those shares. You need to present the necessary documentation for it. Upon successful verification, your account will be opened.
Select the price point at which you want to buy and sell shares. Then wait for the buyer/seller to fulfill that request.
Once the transaction is done, you either receive shares or money for the stocks you bought or sold.
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