An introduction about STOCK MARKET

STOCK MARKET

The trading software screen you’ve seen is the real stock market basically where prices of different company’s share is moving up & down.Why is it moving up & down ? because some people are buying the shares & some people are selling it at the same time.When more people are buying, price moves up & more people are selling ,price goes down.So we can say, due to demand increases of a stock, price goes up & due to demand decreases of a stock, price goes down-simple.Stock market is a market where different company's shares are traded by people,hence the place is called stock market & thanks to internet due to which we can access this market online from anywhere we live.

 BSE & NSE / Exchange

An exchange is a marketplace where buyers meet the sellers or sellers meet the buyers & do their transactions.You can say exchange is the organizer here who creates this market place called "stock market".All the companies shares are listed on the exchange only.When someone wants to do share trading & open the account with broker, he gets registered with the exchange automatically as the account opening procedure is processed by the exchange only. There can be multiple exchange in a country.In india, BSE & NSE are the most popular stock exchange we have. Mostly people trade in NSE due to some advance facilities it offers..

 SEBI :

Full form of SEBI is “ securities exchange board of india”. SEBI comes under finance ministry of india.SEBI is the watchdog of indian financial market & it monitors the exchanges,retailers,companies same like, we have lot of different banks in our country working independently but the regulatory body is RBI only.

BULLS AND BEARS

 

These two terms are widely used in all different markets in the world. People keep on saying “I am bullish in abc stock” or “I am bearish in xyz stock”. What does it mean ? When someone says, he is bullish it means he thinks that stock will move up & good for investment.When someone says, he is bearish it means he thinks the stock will go down & bad for investment.So keep this two terms in your mind as we’ll be using these two terms the same way in future.



Timings of stock market : Monday to Friday from 9.15 am to 3.30pm.