Basics of Stock Trading

To summarize, stock trading is the process of buying and selling stocks in the stock market after the company has finished issuing stocks to the general public. Stock trading is facilitated by stock exchanges that are governed by SEBI in India. In India, there are two stock exchanges, BSE and the NSE. A stock can be bought or sold in any order based on how a trader believes that the price may go. A stock is bought first and sold next if the price is believed to go up and vice-versa if it would go down. A stock price is determined based on the demand and supply of that particular stock in the stock market. Trading of stocks does not affect company’s monetary aspects however a company’s performance will be reflected on the stock price.