Stock market beginners

 Before starting any new task it is important to learn the basics. That holds for beginners entering the stock market as well. In simple terms, the stock market is a place where buyers and sellers congregate to trade stocks. Before the internet arrived, people would gather at the trading ring to buy and sell stocks. Today, however, all trades are carried out using computer terminals at brokers’ offices. Moreover, the terms ‘share market’ and ‘stock market’ are used interchangeably.

Read along to get better acquainted with how the share market works. Find out about the different types of stock markets, why stock prices fluctuate, how to invest and trade in stocks, and more.

SHARE MARKET BASICS

If you are new to share market investing, learning how the market functions is vital:

• The stock market is a place where the shares of different companies are listed and traded.
• This trading takes place via platforms known as stock exchanges.
• India has stock exchanges like the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Metropolitan Stock Exchange (MSE), National Commodity and Derivates Exchange, and Multi Commodity Exchange (MCX).
• To buy and sell stocks, investors in India are required to open a demat account and a trading account with a registered depository participant (DP).

The stock market is closely regulated by the Securities and Exchange Board of India (SEBI). SEBI imposes regulations on the stock market to govern its working, build transparency, and protect the interest of investors. By doing so, investors are encouraged to participate in the stock market with confidence.