My understanding of basics

– In India, there are two primary exchanges; the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
– When a company comes out with an initial public offer (IPO) it is called the primary market
– Buying and selling shares is largely like buying and selling any other commodity.
– The market (buyers / sellers) determines the price of the share.
– Price of share is determined by demand and supply.
-The BSE Sensex includes 30 stocks and the NSE comprises 50 stocks
– Shares can be traded online
– The broker helps you execute your buy and sell trades. Brokers typically help buyers find sellers and sellers find buyers.
– we need to open a trading account with a broker and then we can buy and sell shares in the stock market
– Trading account is where you execute your buy and sell trades. The demat account is where your shares are held in custody
– Trading refers to short term buying and selling of shares whereas investment refers to long term buying of shares
– Fundamental analysis is about understanding the business of the company, its growth prospects, its profitability, its debt etc.Technical analysis focuses more on charts and patterns and tries to find out past patterns to apply for the future