What Is the Stock Market and How Does It Work?

by Anup Maurya
What Is the Stock Market and How Does It Work?

You must have heard the word Stock Market on the internet or people near by you talk about it. (Stock Market and Share Market are same, just to different name.)

If you’re interested in learning exactly what is the stock market, then you’ve come across the perfect article. In article you’ll learn about learn what is stock market, In simple words.

Even if you are a beginner, you will understand how the stock market works, and how can we make money work from the stock market? We are going to try to answer every single question related to the share market through this article.

If you know the meaning of the market, then you have known half the stock market in the beginning.

What is Stock Market?

Market means where things are bought and sold. Similarly, the stock market is a place where a lot of companies around the world are listed and those companies have issued some of their company’s stake in the stock market, that is, to buy and sell. The share price of each company is different.

People buy those shares at a lower price and sell them when their price goes up. This gives them some profit and they earn money in the stock market. But sometimes due to some reasons, if the company loses, then the price of its share also decreases.

Which sometimes hurts us, because the share price of any company varies every minute according to its business and today their share price is something , then tomorrow there is something else.

The purpose of most of the people behind investing money in the stock market is that the money they are going to invest in the stock market can get them good returns in the future.

How does the stock market work?

Many people want to invest their money in the stock market, but due to their lack of proper knowledge of the stock market, they are afraid to invest money in the stock market. Many people even invest their money in the stock market without any information, but due to this mistake, they also lose all their money.
As we are talking about the stock market or the stock market, the stock market is known by many names. The share of the share market is also called “part” in its simple language. In the stock market, everything is a share job.

Now the most important, Is how the stock market works? 

Simply, the stock market is a digital market. It can also be called the electronic market. Where all the investors can easily buy and sell their shares. The place of buying and selling the share of the company which is listed in the stock market is called the share market or stock market.

Buying and selling shares in the stock market takes place through exchange. Now you must have the question in your mind that what is exchange in the share market? Don’t worry, you will find the answers to all your questions.

There are two largest stock exchanges in India

  1. BSE ( Bombay Stock Exchange )
  2. NSE ( National Stock Exchange )

All the business in the stock market is done through these exchanges. BSE (Bombay Stock Exchange), which is the largest stock exchange in India, was established in 1875 as a large stock exchange in India. India’s second stock exchange NSE (National Stock Exchange) was established in 1992 as the first electronic stock exchange.

The share price of all the companies that are listed in the stock market is recorded in the BSE (Bombay Stock Exchange). The share price of each company varies according to its profit and loss.
In this way, by making these exchanges our medium, we have to work in the stock market.

Difference Between NSE and BSE

NSEBSE
It is one of the biggest stock exchanges India along with being a harbinger of technological advances by the introduction of fully automated trading systems.The BSE is one of Asia’s oldest stock exchange markets which offers a legacy of high-speed trading.

Conclusion

I hope that after reading this article, you must have realized what this stock market is? And how exactly does the stock market work and how can we invest in the stock market?

If you understand what a stock market is? Don’t forget to share this information with your friends. So that they can also know how to make money in the stock market.

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