STOCK MARKET

What is a stock market ? Stock Market is a place where buying and selling of shares takes place. A share is an ownership in business. Shares of companies are listed on a stock exchange. An investor or trader trades in shares through these stock exchanges. They may be public stock exchange or private stock exchange. In India there are 2 stock market exchanges i.e. NATIONAL STOCK EXCHANGE ( NSE ) and BOMBAY STOCK EXCHANGE ( BSE ). BSE is the oldest stock exchange of ASIA infact the first ever stock exchange in ASIA established in the year 1975 but major volumes of trading are done in NSE. NSE was incorporated in the year 1992 but recognised as an exchange in 1993.It started its operations in 1994. Investment in shares is done through stock brokers or brokerage houses. They charge a fees called Brokerage for each transaction. The body governing the rules of stock market in India is called SEBI ( SECURITIES AND EXCHANGE BOARD OF INDIA ) . There are various courses for learning stock markets . Many stock market institutes provide stock market coaching for persons interested in learning stock markets courses. Many other type of securities such as bonds , derivatives , debentures are also traded on stock exchange. There are different types of participants in stock market. They may be small investor or large investors who can trade from anywhere in the world. Large investors are called Institutional investors whereas small investors are called retail investors. Institutional investors may be banks , insurance companies, hedge funds, and pension funds. Large investors from abroad are called FII ( FOREIGN INSTITUTIONAL INVESTOR ) and from within India is called DII ( DOMESTIC INSTITUTIONAL INVESTOR ) . LIC is the biggest DII of India. One can learn how the stock market works by joining any stock market institute. Importance of Stock Markets The stock markets are one of the best ways for companies to raise their capital for expansion. It is considered as an indicator of economy of a country. When the stock market is at rise , the economy is said to be rising and vice versa. In a stock market trading can be done in two ways Investment or long term trading and short term trading . For long term investment , Fundamental analysis of stocks is done whereas for short term trading , Technical Analysis of stocks is done. Fundamental analysis is a method of measuring a stocks intrinsic value or real value. Technical analysis is the study of charts in order to forecast the future price movements and trends. Fundamental analysis tells an investor what to buy and technical analysis helps investor when to buy / sell a stock. Both Fundamental and Technical analysis of stocks is taught in stock market institutes. Prime Stocks is the best stock market institute for learning Technical Analysis course . They have self developed techniques that are 95% accurate. Success is guaranteed in Prime Stocks.