Google definition of stock market- “A stock market equity market or a share market is the aggregation of buyers and sellers of stocks present on a business claim. This may include securities listed on a public stock exchange as well as stock that is only traded privately 50 shares of private companies which are sold to investors through equity crowdfunding platform landprime.”
To be precise and concise, a stock market is a market where people buy and sell shares. The stock market is where the exchange of shares takes place between the stockbrokers and traders. Let us see some common terminologies before we move into what exactly the share market or stock market is.
Share- A share is the single smallest denomination of company stock. Stock can be considered as a collection of shares. Shares are a part of something bigger that is the stocks. shares represent the proportion of ownership in the company while stock is just a simple aggregation of shares in a company. Through these shares, you can earn profit. You can buy a share or sell shares if the rate of the share is high.
Trader- A stock trader is a person who attempts to profit from the Purchase and sale of stock shares. The stock traders can either be professionals trading on behalf of some huge company or they can be individuals trading on behalf of themselves.
Investors- An investor is a term used to define a broader scope than a trader. investors look for larger returns over an extended period slot through buying and holding the shares. A trader is someone who looks for a shorter scope while an investor is a person who invests in shares for a long time.
Stock Exchange- stock exchange is just like a Marketplace where the shares of companies are bought and sold. shares issued by various companies are traded on the stock exchanges after they have been issued in the market. Investors buy the shares which are available in the market and through that the company gets the money to grow its business. Once it has established itself, the prices of the shares increase and as a result, it provides profit to the shareholders who have invested in the company’s shares.
NSE and BSE- NSE stands for National Stock Exchange whereas BSE stands for Bombay stock exchange. Both of them are the most popular stock exchanges. There are many other stock exchanges also present but these two are the most important ones. NSE is the biggest stock exchange in India while BSE is the oldest stock exchange in India.
NIFTY- Nifty refers to the National Stock Exchang