Share Bazaar

Share Bazzar

The share market has always been a popular investment avenue. In fact, it always catches the eyes of the investors because of the returns that can be made in the stock market. More and more people are investing in the market in the hope of making good returns. In addition, mutual funds and SIP mode investment have been first preference of the people to invest their savings.

Definition 

Stock market is a place where the buyers and sellers come under one place on a single platform to trade in stocks. The stock market has grown over a period of time. In fact, in earlier times when BOLT facility was not there, people use to stand in a trading ring to purchase or sell a stock. But with time, the computer terminals took over and now trading happens at broker’s office using the internet. To sum up, it would not be wrong to say that share market and stock market are one and the same thing.

Stock Market Basics in India

The Indian stock market has two exchanges where trading of shares and securities is possible. They are National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The shares of different companies are traded on these exchanges. The investors aim to invest money in such avenues where they can deal with inflation, future needs, etc. The stock market is one investment avenue which has the potential to give high returns to the investors. The investors cannot start investing or trading in the stock market without proper information or knowledge. To become a successful investor or trader one needs to learn about the functioning of the stock market, develop right strategies, indulge in understanding the technical and fundamentals of a company and much more. Nifty Trading Academy helps the beginners in the stock market to learn and form good investment strategy.

Types of Markets
The Indian stock market has two types of markets. 

1) Primary Market

2) Secondary Market

A. The primary market is one where a new company decides to come out with an initial public offer (IPO).  The new companies can get itself listed on the stock exchange through the primary market. 

B. The Secondary Market in other hand, once the company get itself listed and starts trading normally, it is termed as a secondary market. The trader and investor can indulge in normal buying and selling of shares.

Share Price
The stock market determines the price of the shares. The whole concept of share market is dependent on the demand and supply concept. To put it another way, the price of the shares increases when there is more buying. On the other hand, the price of the shares decreases when there is selling. Thus, the demand and supply concept helps in identifying the price of a stock.

The next important thing that every trader and investor must know is the meaning of the term stock indices. In fact, stock indices are the most common term in the India share market, 

Stock Indices

The Indian stock market has hundreds and thousands of companies listed on it. The companies belong to different sectors and fields. When such companies are combined or grouped together to form an index it is termed as stock indices. The companies forming part of stock indices are classified on the basis of size, market capitalisation, etc. The NSE index comprises of 50 stocks and BSE Index comprises of 30 stocks. Apart from stock indices, the Indian share market has sector indices that include bank index, pharma index, IT index and so on, where similar companies are grouped together.

Buy & Sale

Online trading is one where the shares and securities can be purchased or sold using the internet. In fact, the transaction can be carried out by the trader or investor by sitting at his home, office, or from anywhere in the world. In fact, the trader or investor just need to log in to the trading account and execute the transactions. On the other hand, offline trading is one where trading can be done by visiting the office of the broker or by calling him to give orders to execute the transaction.

Trading in shares in securities is possible only with the help demat account. To execute transaction via online or offline mode the user must have a demat account with the broker.