Understanding the Basics of the Stock Market
What is the Stock Market?
The stock market is a platform where investors can buy and sell shares of publicly traded companies. It serves as a critical component of a free-market economy, enabling companies to raise capital and investors to own a portion of a company. Understanding this is the first step towards understanding stock market basics.
How Does the Stock Market Work?
The stock market operates through a network of exchanges, such as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. Companies list their shares on these exchanges through an Initial Public Offering (IPO). Once listed, these shares can be traded among investors. The price of stocks fluctuates based on supply and demand dynamics.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.