A stock market is a place where the buyers and seller meet in the presence of brokers to exchange the stocks. When a company releases IPO, a person can buy the share from the company for a particular face value mentioned. The share price of a stock fluctuates based on the buyers/sellers active participation. The stock market is a secondary market. Online trading can be started with a DEMAT account where all the certificates of a person are electronically saved in NSDL. SEBI protects, promotes and regulates the stock market and the exchanges. For a company to publish IPO, it has to pass through various criteria mentioned by SEBI. Investing and trading are two different activities which differ based on the period, capital growth and risk factor. An activity in stock market can either be a business or a gamble based on prior study of return-risk ratio. When the price is expected to increase, it is advised to take long position (buy first and sell when the price increases). When the price is expected to decrease, it is advised to take short position (sell first and buy later when the price decreases). SENSEX and NIFTY are the indexes of BSE and NSE respectively, determining the averages of the top 30/50 companies listed in their particular exchanges. NSE is more preferred than BSE.
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