What is the stock market?

 Hey guys…!

Let's understand the stock market in a simple way 

first, we should understand the stock market 

So basically Stock Market refers to the collection of markets and exchanges where regular activities of buying selling, and issuing of shares of publicly-held companies take place

Now Let us understand how the stock market works:

In the stock market, there are thousands of companies are listed and there are around more than lakhs or crores of traders in the stock market

There are two types of company

1) Private Limited: In private Ltd. The company only a few peoples has ownership of the company, and it's not available to everyone

2) Public Limited: Whereas in Public Ltd. Companies anyone can buy shares

Let us suppose

There is an XYZ Company that has planned to expand its company around the country and it needs money then a company can borrow money from a bank or from an Investor

But remember if XYZ company takes loans from the bank then he should need to pay interest and also pay the money which was borrowed by XYZ company

Whereas, if XYZ company issues its share publically, then XYZ company does not need to pay money to its Investors also, the person who has invested in the stock market will become an owner of the company

Some interesting facts:

When buyers are more than sellers in the stock market the price of shares Increases, whereas if the sellers are more than buyers then the share price decreases

While in the stock market every day there are many buyers and well many sellers, that's why share prices fluctuate every day

The Two main Stock Exchanges in India are:

1) Bombay Stock Exchange (BSE)

2) National Stock Exchange (NSE)

Both of these stock exchanges are fully computerized, NSE and BSE use an automatic system which means If buyer's and sellers' prices have been matched then the transaction is Fully completed

There are thousands of companies listed in the Indian stock market so it is hard to track those Companies every day to solve this issue stock market has developed INDICES

BSE has SENSEX; while NSE has NIFTY

SENSEX indicates the top 30 companies under it, while NIFTY indicates the top 50 companies under it we decide stock market by seeing INDICES

For example: 

The Green mark indicates stock market INDICES are in a healthy position, whereas the Red mark indicates it opposite

Thank you…!