It is very important to know the basic knowledge of stock market as it helps one to understand the concept of financial markets. It gives knowledge to the trader/investor regarding the working of the companies and how they evolve. It helps us to know who are the people involved in running of the company. Who are the regulatory bodies who control and protect the investors and traders from financial scams. Basics of stock market also helps us to understand how any general public can become a part of a huge company by just investing small capital.