Stock market is the designated market for trading various kind of securities in a controlled, secure and managed environment. Since the stock market brings together hundreds of thousands of market participants who wish to buy and sell shares, it ensures fair pricing practices and transparency in transactions. While earlier stock markets used to issue and deal in paper-based physical share certificates, the modern day computer aided stock markets operate electronically. As the primary market, the stock market allows companies to issue and sell their shares to common public for the first time through the process of initial public offerings (IPO). To facilitate this process, the company needs a market place where the shares can be sold this marketplace is provided by the stock market. Following the first time share issuance IPO exercise called the listing process, the stock exchange also serves as the trading platform that facilitate regular buying and selling of the listed shares. This constitutes the secondary market. The stock exchange has a fee for every trade that occurs on its platform during the secondary market activity. The stock exchange shoulders the responsibility of ensuring price transparency, Liquidity , price discovery and fair dealings in such trading activities . Most of the trading in the Indian stock market takes place on its to stock exchanges; the Bombay stock exchange BSE and the national stock exchange NSE . The Nifty 50 and Sensex are indices of two of the biggest stock exchanges in the country: the NSE and the BSE. The Nifty 50 is the market index consisting of 50 well-established and financially sound companies listed on NSE. Sensex is the market index consisting of 30 well-established and financially sound companies listed on BSE.
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Hi,
Good start. It is a good analysis. All the best!
I attempt to answer your question even though you have covered pretty much all the points:
Vegetable / Electronics / Garments markets are some of the markets where the vegetables, electronic goods, and garments are traded between buyers and sellers. In all the markets the trading practices are the same except the products. In the stock market, the product is mainly shares where buyers and sellers are meeting through the stockbrokers and do the transactions.
Thank u so much 🙂