Here is the summary…
1.
Stock trading takes place with the help of Exchange, brokers, SEBI, Govt and Banks. Everyone of them has some role to play in the entire trading process.
Exchange is the place where best deals are exchanged between buyers and sellers through certified brokers.
Borker is a mediator who facilitates exchange of trades between buyers and seller through exchange. Brockers are responsible to make sure traders are signed up with them with adequate funds in deposits in order to execute trade.
SEBI is the one who regulates and monitors trading activity in the market.
Govt. monitors the exchanges by appointing SEBI
Banks help traders maintain their shares in de-materialized format
2. Traders are not directly enrolled with exchanges but brokers. Broker deposit security deposits to exchange to acquires broking license. Any irregularities by the trader is settled from broker’s deposit by exchange. broker in-turn recovers it from the trader.
3. Stock trading is potential way pf wealth creation both in short and long term by trading various instruments like equity, futures, options etc.
4.
Yes it’s possible provided we own the shares and the stock is listed in both the exchanges. It’s not possible in intraday.
5. If I quote higher price than market price I will be considered best buyer for that timeframe but the trade will happen only at the best price being offered by the seller at the point.
7. Now a days orders are placed online through trading software provided by the broker.
Hi,
Your answers are briefly explained, will be useful to recall.