A stock market is a platform where you can invest in a wide range of financial instruments, including shares, bonds, futures and derivatives. Whatever your preferred choice of instrument, stock markets enable the transaction.
There are two major stock exchanges in India:
Types of Share markets: There are two types of share markets in the country:
Securities and Exchange Board of India (SEBI), constituted in 1992 under the SEBI Act, regulates and monitors stock markets in India. Along with the overall administrative control of stock markets, SEBI is also entrusted with the role of conducting inspections and formulating rules for stock markets.
It is imperative for you to understand that you can trade in stock markets only through a broker. Stockbrokers are financial intermediaries, who enable you to trade while charging brokerage fees for their services. Stockbrokers/ Brokerage firms are registered with SEBI and act as a link between the investor and stock markets.
Before the advent of the internet, you were required to physically visit brokers, and instruct them for transactions. But now stockbrokers provide digital trading platforms, where you can trade through:
You can evaluate stocks through:
Typically, two methodologies are designed to calculate market returns:
Thus, stock markets are places where stocks and securities are electronically traded. The first step for your investment in stock markets should be to open a Demat Account and a Trading Account with a reliable financial partner. A trusted brokerage platform can provide you with cutting-edge market reports, alongside facilities, like brokerage cashback and zero AMC charges for up to one year on your Demat Account.