A Stock market or stock exchange is a place where stocks and bonds are traded or in simple terms bought and sold. Stock market is also known as equity market. Many investors buy stocks of various companies and then sell it off for more money that they actually invested in buying it.
Stocks also known as shares are units of company ownership. Although stocks are a long term investment there is no guarantee and risk is also involved in the same.
Indian Stock market
Indian Stock market is one of the oldest stock market in Asia. In Bombay, the stock trading started in 1830s, by trading corporate stocks of Bank and Cotton presses. Bombay Stock Exchange (BSE) is first Stock Exchange of Asia. BSE is the world’s fastest stock exchange with a median trade speed of 6 microseconds
Make Money from Stock Market
Investors who are looking forward to make some money buy stocks from companies and become part owners or shareholders. When the company incurs profit, you will also share a part of the profit, but if the company runs at a loss, your stock prices will also go down. You need to be strategic in a stock market when it comes to selling and buying of shares. If you find that your stock is not earning you enough money and you decide to sell it off, you would lose your money you invested in that particular stock.
The stock market is not stable, prices of the stock can vary. If you are making an investment, you can only hope that your stock will earn you more than what you invested.
Computers and Technology
With the involvement of Technology, shares of a company can be dematerialised (demat) and can be stored in electronic form in a Demat Account. Also with the advent of High frequency trading and algo trading, now even computers have started to do the stock market trading without human involvement. Humans make computer programs to execute the trades as per their trading strategies.
Recommended Read :
- What is Rights issue of a Share?
- Convertible Preferred Shares
- What is Capital Market?
- Indian Stock Market Trading Hours
- Guide for Stock Trading in India
- Indian Online Stock Market Trading
- Market Timing of Indian Stock Markets
- Indian Stock Market Holidays
- What is Volatality?
- What is a Volatile Market?
- What is Pre Open Trade Session?
- What is STT All About Securities Transaction Tax?
- IIP Data and Stock Markets
- Online Trading Brokers in India
The scene to be seen in many movies. A room full of people screaming over one another or having an intense telephone conversation. That is what usually bumps into our mind when talking about a stock market. However, technically it´s the place or a platform, where different financial instruments, mostly bonds, and stocks are being bought and sold. Nicely written, a lot of information.