In India we have two popular Stock Market namely the NSE and the BSE. NSE is more popular.
A Stock Market operates via an exchange which is an institution, organization, or association which hosts a market where stocks, bonds, options and futures, and commodities are traded.
Buyers and sellers come together to trade during specific hours on business days. Exchanges impose rules and regulations on the firms and brokers that are involved with them. If a particular company is traded on an exchange, it is referred to as “listed”.
Stocks allow you to own a share of a company. The stock price is based on the company’s earnings. If the company does well, or even if everyone thinks the company is going to do well, the stock price goes up. In addition, many companies give a little dividend payment each year to the stockholders, which provides extra value.
Thanks to vast computer networks, much of the trading is done with little, if any, human intervention. This makes it as easy to sell 100 shares as it is to sell 10,000 shares.
Stock market investing is a good way to gain returns that beat inflation over time.
However, stocks are riskier than bonds because you can lose your entire investment if the company goes out of business and the stock price falls to zero.
Individuals use the stock market because the returns, on average, outpace those of other investments, such as bonds or commodities.
Stock market investing is an excellent way to make sure your investments do better than inflation