The World Of Stock Markets!

Hi folks!

I am just beginning to understand the world of Trading!. I read a lot of threads ( almost the entire day) and this forum is interesting. So much to learn and understand. Well as a trader I am looking to understand a whole lot of things that go on in the financial world. There is this whole new band wagon of discount brokers, online traders, advanced trading platforms , charts, historical data etc. I am here to understand all of these better. Please feel free to drop in your opinions. :)

Hi Nishi, welcome to the world of stocks.
Here you will be able to make successful investments and trades to multiply your money within a short span of time or over a period of years.
However, before you decide to make your first trade, ensure that you understand some of the basic concepts as follows

Let start with
Introduction To Stock Market

Stock Market
Stock market is a place where people buy/sell shares of publicly listed companies. It offers a platform to facilitate seamless exchange of shares. In simple terms, if A wants to sell shares of Reliance Industries, the stock market will help him to meet the seller who is willing to buy Reliance Industries. However, it is important to note that a person can trade in the stock market only through a registered intermediary known as a stock broker. The buying and selling of shares take place through electronic medium. We will discuss more about the stock brokers at a later point.

Major Stock Exchanges in India
There are two main stock exchanges in India where majority of the trades take place - Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Apart from these two exchanges, there are some other regional stock exchanges like Bangalore Stock Exchange, Madras Stock Exchange etc but these exchanges do not play a meaningful role anymore.

National Stock Exchange (NSE)
NSE is the leading stock exchange in India where one can buy/sell shares of publicly listed companies. It was established in the year 1992 and is located in Mumbai. NSE has a flagship index named as NIFTY50. The index comprises of the top 50 companies based on its trading volume and market capitalisation. This index is widely used by investors in India as well as globally as the barometer of the Indian capital markets.

Bombay Stock Exchange (BSE)
BSE is Asia’s first as well as the oldest stock exchange in India. It was established in 1875 and is located in Mumbai. It has a total of ~5,295 companies listed out of which ~3,972 are available for trading as on August 21, 2017. BSE Sensex is the flagship index of BSE. It measures the performance of the 30 largest, most liquid and financially stable companies across key sectors.

Different Market Participants
There are a lot of individuals and corporate houses who trade in a stock market. Anyone who buys/sells shares in a stock market is termed as a market participant. Some of the categories of market participants are as follows:

  • Domestic Retail Participants-These are individuals who transact in the markets.

  • NRI’s and Overseas Citizen of India (OCI)-These are people of Indian origin who reside outside India.

  • Domestic Institutions-These are large corporate entities based in India (for example: LIC of India).

  • Domestic Asset Management Companies (AMC)-The market participants in this category would be mutual fund companies like HDFC AMC, SBI Mutual Fund, DSP Black Rock and many more similar entities.

  • Foreign Institutional Investors-FIIs are Non-Indian corporate entities such as foreign asset management companies, hedge funds and other investors.

After you go through, let us know... we will be happy to guide you on more basics
A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks(also called shares), which represent ownership claims on businesses

Similar threads