The stock market is a meeting place of buyers and sellers of securities and has common characteristics of demand and supply as any other physical market with the difference being that it is centralized and highly transparent. It facilitates price setting mechanism of securities. It is governed and regulated by SEBI. The stock exchanges are examples of secondary market where securities are traded in expectation of profits, whereas the issuance of IPO’s refers to the primary market. The distinction between trading which is shorter term and investments which is longer term is an important one to understand. SENSEX and NIFTY are the indices of the two stock exchanges in India namely the BSE and the NSE with the NSE being the popular one among them.