A stock market is a place where the shares of a public listed company are traded. Stock market is divided into a primary and secondary market.
Primary stock market is the one where companies come up with an Initial Public Offering (IPO) for raising capital from the investors.
Secondary market is the one where the stocks already listed and offered for public investments are traded. In the secondary stock mark the investors buy and sell shares at a prevailing market price. Secondary stock mark or the stock exchanges are regulated by the Securities and Exchange Board of India.
How Does Stock market work
The stock mark works in the following sequences
Understanding the stock exchange platforms
Listing of the companies and their stocks in the primary market.
The trading of the stocks then takes place in the secondary market
Trading is conducted through the stock brokers in the country. These can be an individual stock broker or a brokerage firm. The investors can associate with any one of them on the basis of their preferences.
Passing the order to the exchange.
Settlement of the order after finalization from the exchange.
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