As the name implies, the stock market is a market where buyers and sellers gather to trade. That is, buy and sell stocks of listed companies. The stock market is known as the stock market, stock market, or stock bazaar.
Simply put, if Ram wants to sell 10 shares of Reliance Industries for Rs 1990 / share, he places a sell order on the stock exchange. The stock exchange then finds a buyer who wants to buy 10 shares of Reliance Industries for Rs 1990 / share. Therefore, the stock market is a virtual market where buyers and sellers gather to trade stocks.
There are two types of Stock markets:
1. Primary market
2. Secondary market
The primary market is the first market for a company to raise funds. The process of issuing shares to the general public for the first time is known as an initial public offering (IPO).
When shares are issued in the primary market, they are traded. That is, it is bought and sold in the secondary market through the stock exchange.
Stock exchanges are further divided as follows:
1. National Stock Exchanges Conference
2. Regional stock exchange.
The Bombay Stock Exchange and the National Stock Exchange are the only two national stock exchanges in India, and BSE is the oldest stock exchange in Asia.
BSE is also the 10th largest stock exchange in the world with a market capitalization of $ 2.1 trillion. Market movements are mapped using two major indexes, SENSEX and NIFTY. Sensex is the index used by the BSE to measure the movements of India’s largest 30 companies, while NIFTY is the index used by the NSE to measure the movements of India’s largest 50 companies.