Introduction to Stock Market

You must have often heard about stock market from someone. And seen some numbers or grids and must have been curious. So here we are. These all are related to stock market.

Let me explain.Stock market is a marketplace, where financial securities issued by companies, are bought and sold. Securities issued by companies, such as shares and bonds, are traded on the stock exchanges, after they have been issued in the primary market. The stock market allows companies to issue and sell their shares to the common public for the first time by initial public offerings (IPO).

How is it traded? Who trades it?

Investors are individuals who buy and sell shares of publicly listed companies. The stock market lets buyers and sellers negotiate prices and make trades. As you cannot purchase shares directly from stock markets, you have to use the services of a broker. A broker is a financial intermediary, acting as the link between you and the stock market which are certified by Security exchange of the country.

What is a security exchange?

A stock exchange or securities exchange is a marketplace, where financial securities issued by companies are bought and sold. It facilitates the transaction between traders of financial instruments and targeted buyers.

Some examples are:

1. New York Stock Exchange

2.NASDAQ

3. Tokyo Stock Exchange

4. Bombay Stock Exchange

5. Toronto Stock Exchange