Once new securities have been sold in the primary market, they are traded in the secondary market—where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. The secondary market or the stock exchanges are regulated by the regulatory authority. In India, the secondary and primary markets are governed by the Security and Exchange Board of India (SEBI).

A stock exchange facilitates stock brokers to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India’s premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.

2 Comments
  1. Naresh 4 years ago

    Hi,
    Your query:: How to select the stock for investment?
    To invest in stocks you must know fundamental analysis. Investing in fundamentally good companies for long term is the way to create wealth in stock market.

    Your query:: Which broker is best for a beginner?
    We recommend zerodha or upstox

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