Finschool By 5paisa

FinSchoolBy5paisa

What is Share Market

By News Canvass | Jun 16, 2022

What Is Stock Market?

The securities market is a marketplace where buyers and sellers meet to trade publicly traded stocks from time to time during market days. The terms’ stock market’ and ‘share market’ are often used interchangeably. The most difference between the them is that while the former simply won’t trade stocks, the latter allows us to trade a range of monetary instruments like bonds, derivatives, and currency. Only shares may be traded on a exchange. A securities market could be a place where stocks are either issued or traded.

The Indian securities market dates to the late 18th century, when the room was located next to the government building in Mumbai, beneath the shade of an outsized tree. A tiny low group of people would gather under this tree to conduct informal cotton commerce. This was mostly because of Mumbai’s status as a significant trading port where important commodities were frequently traded.
The phrase “share market” in India refers to the country’s two major stock markets, the Bombay securities market (BSE) and therefore the National securities market of India (NSE). in addition, there are 22 regional stock markets.
Share market has two markets:

Primary Market:
A corporation registers to issue a specific number of shares and lift funds on the first market. This is often also referred to as being an exchange listed company. to boost finance, a company goes to the Primary markets. This market is where a firm first registers to lift capital through the sale of shares on an exchange. This can be called an Initial Public Offering (IPO), and it occurs when a firm becomes publicly registered, and its shares are available for trading among market participants.

Secondary Market:

The secondary securities market is where a company’s new securities are traded after they need to be sold within the primary market. Investors should buy and sell shares among themselves at current market prices.

Typically, investors undertake these transactions through a broker or other intermediary who can assist them within the process. Different brokers offer various options. The secondary market is where new securities are traded after they need to be sold within the primary market.

This can be to permit investors to sell their shares and exit an investment. Secondary market transactions are exchanges within which one investor buys shares from another investor at a value or at a price arranged by both parties.
Following a fundamental or technical study, investors favor investing within the stock exchange. Short-term investors and intraday traders place a greater emphasis on technical analysis and chart analysis, which depicts stock price changes.

The BSE is currently ranked as the world’s 11th largest securities market, with a capitalization of $1.7 trillion. The NSE’s market capitalization is predicted to be over $1.65 trillion. The BSE has around 5,000 companies listed, whereas the NSE has 1,500. Both exchanges are still on par in terms of share trading volumes.

People can now undertake internet trading from the convenience of their own homes. Internet-based services like zero brokerage demat and live updates are all available.

View All