Basics of Stock Trading

A stock exchange is an exchange where stock brokers and traders can buy and sell shares of stock, bonds, and other securities

SEBI is regulator to control Indian capital market.

Governments won’t take an active role in the securities market (except for regulating it), however, there are methods and policies by which the government’s actions may have an indirect influence on the market

Buyer gets in touch with a Broker, and gives him/her all the details of shares he/she wants to buy. Then the broker strikes a requisite deal and receives share
certificate, and transfer form. After deducting, documents to the buyers.

As for seller, he/she also gets in touch with a broker and gives him/her details along with share certificates and transfer forms. Once the deal is struck, broker
receives the payment and deducts his commission.

The terms long and short refer to whether a trade was entered by buying first or selling first. A long trade is initiated by buying, with the expectation to sell at a
higher price in the future and realize a profit. A short trade is initiated by selling first (before buying), with the expectation to buy the stock back at a lower price and realize a profit.

Long Unwinding means we are selling stocks which we already bought and exit out of it.

Short covering is buying back borrowed stock in order to close an open short position. It refers to the purchase of the exact same security that was initially sold.