Home » Business » What is stock market? How Stock Market works?
what is stock market

What is stock market? How Stock Market works?



What is the stock market?

National stock exchange in India are NSE, BSE, OTC, and state-wise are Calcutta stock exchange, madras stock exchange, Ahmadabad stock exchange, etc.
It is called a stock or equity market and is primarily know for trading stocks/equity but other financial securities like etc. corporate bonds, derivatives based on stocks, commodities currencies and bonds are also traded in stock markets. A stock market is a designated market for trading various kinds of security in a Controlled, Secure and managed environment. SEBI and RBI ensure that the investor and protected from any sort of fraud and makes sure the fair pricing and transparency in transaction. The earlier stock market used to issue and deal with paper-based physical certificates which came to halt due to its take of Functionality, now everything works electronically.



How the Stock Market works?

How the Stock Market works?
As a primary market, the stock market allows companies to issue and sell their shares to the common public for the first time through the process of IPOs’.This activity helps companies to raise necessary capital from investors. It means that a company divides’ itself into a number of stocks and sells a part of those shares and sells a part of those shares to the public at a price. To sell these stocks a company needs a market where these can be sold. This market place is provided by the stock market.
The stock market acts as a facilitator for this capital raising process and receives a fee for its services from the company and its financial partners.
The IPO exercise is shown as a listing process. The stock exchange also serves as a trading platform for the buying and selling of listed shows. The stock market earns a fee for every trade that occurs. A listed company may also offer new, additional shares through another offering at a later stage through the right issues or follows-on offers. They can even buyback or de-list their shares.
The stock market also has in indices like banking, nifty, and Sensex, etc. which provides a measure to back the movement of the overall market. The stock market also maintains all the company news, announcement, financial reports which can be accessed on the official website.
Long term and short term investors participate in the stock market like a stockbroker, portfolio managers, investment bankers, custodians, etc.



 The primary source of income for the stock exchange is the revenue from the transaction fee that is charged for each trade carried out on its platform. The exchange also earns from listing for changed to companies during the IPO process and other offerings. It also earns through selling market data generated on its platform –like real-time data, historical data, summary data, and reference data- which is vital for equity research and other uses many exchanges also sell technology products like trading terminal and dedicated network connection to the exchange, to the interested parties for a suitable fee.
There are the main career options in the stock market but one can invest their own money for maximum returns and also you can invest your family or friend’s money into this market, which is the best part about it.

Check Also

future of Digital Marketing after 2020 Coronavirus pandemic

What is the future of Digital Marketing in 2020 after Corona virus?

Digital marketing is CONSTANTLY changing. Unlike traditional marketing, if you don’t stay on top of …

Leave a Reply

Your email address will not be published. Required fields are marked *