Understanding the Indian Stock Market: An Introduction to Investing
The stock market is a place where shares or stocks of publicly listed companies are bought and sold or traded. Publicly listed companies are those that have their shares listed on stock exchanges, enabling the general public to freely buy or sell these shares in the open market. Companies have to go public or they should be listed in the stock market These stocks represent a portion of ownership in a company and their value can fluctuate based on various factors. In India , there are two primary stock exchanges where stocks are traded-Bombay stock exchange(BSE) and National Stock Exchange(NSE). Both exchanges have their own index ,the BSE Sensex and NSE Nifty 50 respectively which are used as a benchmark to track the performance of the stock market. There is a regulatory authority to regulate and govern Indian stock market for its smooth functioning. This authority is known as Securities and Exchange Board of India (SEBI). For anyone to trade or invest in the stock market, it is necessary to have a Trading account , Demat account and a Bank account.All trading activities like purchase and sale of shares take place through trading accounts. Demat accounts function by providing a means to hold shares in an electronic format. They convert physical shares into digital form, effectively dematerializing them. When you open a Demat account, you receive a unique Demat account number, enabling you to electronically execute and settle your trades.