What is Share Market/Stock Market ?
The stock market is like a big shop where people buy and sell tiny parts of companies, called shares. When you buy a share, you become a part of a owner.
The company can will pledge these shares to get loans for Further investments, If the Price of the Shares are higher the financial institutions will offer more Loans for investment and visa-versa.
The shares price will increase, if the demand is higher and If the demand is lesser the price will drop. In an market if the stockholders starts selling the particular shares (Eg: Reliance Ltd.), the supply of the stocks to the market increases and will leads to the drop in the share price. The price of a share goes up or down depending on how well the company is doing and how many people want to buy or sell the shares. If buyers are more the share price will increase, if the sellers are more than the share price will decrease.
NSE (National Stock Exchange) and BSE (Bombay Stock Exchange), Provide the platform to buy and sell the stocks. The stock market helps companies get money and gives people a chance to grow their money too.
Before computers, buying and selling shares at the Bombay Stock Exchange (BSE) was done by hand. People used paper tickets and met in person to trade. Brokers would talk to each other or write down what to buy or sell on paper, and these notes helped them make the trades on the exchange floor.
As of now Each and every trading is digitized, Where the buying and selling occurs through Broker and Exchanges.
Lets see, How stock market works in the upcoming articles. Please follow the article pages - [Stock Market Education] for regular updates.