Basics of Stock Market

The stock market is a place where people can trade their shares which they have bought from the company through IPO. In stock market the exchanges play an important role in regulating the process of buying and selling. The exchanges are answerable to the SEBI which regulate the activities of the exchanges. In India, currently there are two exchanges. They are BSE and NSE. The Bombay Stock Exchange(BSE) is the oldest of these two. The NSE is a new exchange and is more popular than BSE because of the simplicity and introduction of new instruments in trading (Futures & Options). The have to follow some strict procedures to get listed for IPO to receive funding from the public. These rules are managed and regulated by SEBI. And there are brokers who act as bridge between the exchanges and the traders.