NSE Stock Exchange
Friends, you must have heard the name of stock exchange many times in your stock market, so in today’s blog we will talk about what is stock exchange and how it works.
What is Stock Exchange?
Stock exchange is a platform where company shares are bought and sold, here investors buy company shares and become their owners and companies collect money, the two biggest stock exchanges in India are NSE and BSE, all the companies whose shares we buy and sell in the stock market are listed on both of them. NSE Stock Exchange
How does stock exchange work?
Nowadays almost everything is done online on the stock exchange. For example, if a company wants to be listed in the stock market, it is listed through IPO (Initial Public Offering). When we place an order to buy shares of a company, our order gets executed within a few seconds because there are many buyers and sellers in the market. For example, if I want to buy a share of ABC company at ₹ 100 and someone else wants to sell the share of the same company at ₹ 100, then the exchange will complete the order by combining the buyer and the seller.
How Does SEBI Work?
You must have heard the name of SEBI many times in your stock market, but what is the role of SEBI in it? The stock market in India is regulated by SEBI, SEBI provides security to all investors and keeps an eye on every kind of movement happening in the stock market, so that there is no fraud of any kind in the stock market and all the rules of SEBI are followed.
How does the share price move?
Now the question arises how the price of a share moves, it mainly depends on three things,
First Demand and Supply
If the demand for a share in the market is high then the price of that share increases and if the demand is low then the price decreases,
Second Performance
If the performance of the company in the market is good and the company is about to launch a new product then the share price of the company increases and due to poor performance the price decreases,
Third Market News
Any big news or market event has a complete effect on the price of the share.
NSE Stock Exchange
How to invest in stock market?
Investing in stock market is very easy you need to have a demat account, you can open your demat account through many brokers online like groww, up stock, 5 paisa, angel one, zerodha and many more.
- How to buy and sell shares?
We can buy and sell the shares of a company after analyzing them. For example, if you have opened a demat account with any broker, you will find all the shares there and from there you can open any share and analyze it completely, like how are the fundamentals of the company, how is its balance sheet, how much profit has the company made in the last few years, what is the network of the company? You will easily see all these things there. After this, after analyzing the company completely, you can buy your shares through the broker. As soon as you buy the shares, your shares will go to NSE or BSE. NSE Stock Exchange
But there are many fake brokers in India too, if you open your demat account with them, then your data can be misused, that is why it is very important to have your demat account with the right broker, for this you can use brokers like Go, Up Stock, 5 Paisa, Angel One because these are very popular. NSE Stock Exchange
NSE Stock Exchange