What is the Stock Market?

Hi friends, my name is Laxman, Today’s In this articles, we see that what is the Stock Market? and How it works.let’s begin.Stock market is the Market, like other market like, groceries market. let’s understand with the Example

Geeta is women want the fresh vegetable for cooking in dinner meal, so they go to the market, buy some vegetables and fruits from seller and give them a value of that vegetable in the form of money. then that night she make a meal for dinner. Again see wake up tomarrow then she decided to buy company or pieces of company i.e. Stock

for this purpose she goes to the Stock Market, in this market instead of seller there are the broker who sell the stock of business and buy also, So she give the money to him to buy the ABC pvt ltd. company stock, whatever the stock price in that time. Same things happen in this market.

What is the Stock Market?
stock market basic

What is the BSE and NSE?

BSE and NSE is the most famous STOCK EXCHANGE  in India.

  • BSE (Bombay Stock Exchange) :Bombay Stock Exchange is also the Stock exchange, in this exchange we can buy a stock or sell stock on this exchange. The main index of this all company included in the Bombay Stock Exchange  is SENSEX. In Sensex include the Top 30 companies which has well established and good finance.
  • NSE (National Stock Exchange) : Nation Stock Exchange  is also the Stock Exchange, in this exchange we can buy or sell the stock. This exchange main index is NIFTY-50. In Nifty-50 include the Top 50 companies of India which has well finance background and well established.

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How to invest in Stock Market?

Invest in Stock market we Required following Document:

  1. Bank account
  2. PAN card
  3. Identity proof i.e. Adhar card
  4. Trading Account
  5. Demat Account
  6. Most important MONEY

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1. Bank Account:  The Bank account of any nation Bank like. SBI, HDFC, Axis Bank etc. with good condition.

2. PAN card: Pan card is required for the legal purpose and also for Tax purpose

3. Identity proof: The identity proof you can give the adhar card proof with mobile number attached.

4. Trading Account: This account will open buy providing the above mentioned dacument and this account is only open by broker. there are two types of broker 1. discount broker 2. charged broker  let’s see next post about the broker.

5. Demat account: This account open with the trading account by broker. in this account we can put all stock  in virtual form.

6. Money: Money is the most important things in this matter, so put more than 10000 rupees in the bank account for the investment.

 

This is all about the What is the Stock market? how it works, in next post we see the what is the important piller of Stock market