Top Gainers and Losers in BSE & NSE Stock Market Today

Asefa Hafeez

2 years ago

Table of Contents

What is Stock Market?

The stock market is a platform where buyers and sellers meet to trade publicly-traded shares during specified business hours. People frequently mix the terms ‘share market’ and ‘stock market’. The primary distinction between the two is that the former is used to trade only stocks, but the latter allows you to trade different financial securities such as bonds, derivatives, foreign exchange, etc.

National Stock Exchange (NSE) and Bombay Stock Exchange are the primary stock exchanges in India (BSE).

Types of Stock Market

The stock market can be further divided into two categories: primary and secondary.

Primary Market

When a company registers for the first time to obtain capital through the sale of shares, it enters the primary market. This is referred to as an Initial Public Offering (IPO), following which the company becomes publicly traded and its shares are available for trading among market participants.

Secondary Market

After fresh securities of a company have been sold on the primary market, they are traded on the secondary market. Here, investors have the ability to purchase and sell shares at the prevailing market rates. Investors typically undertake these purchases through a broker or other intermediary who can facilitate the process.

How does Stock Market Works?

Indian stock markets typically involve four levels of participants: market regulator SEBI, stock exchanges, stockbrokers, and investors. Before trading, companies, brokers, and traders must register with stock exchanges and SEBI.

Once a company has been registered and its shares have been listed on the BSE or NSE, trading can commence. Your broker will transmit your buy order to the exchange, which will locate a sell order on your behalf. When a buyer and a seller are located, the transaction is executed at an agreed-upon price.

What is the Purpose of Stock market?

The stock market is an integral part of the economic framework of every nation, including the Indian stock market. This is due to a number of factors:

Raise Capital

By selling shares to the general public, corporations can raise substantial amounts of capital. This helps businesses expand further.

A shared platform for everyone.

By establishing a common marketplace, the stock market opens the doors to even the most remote little investors. Otherwise, it could have been an exclusive gated neighbourhood for the wealthy.

Cost discovery.

How do you determine the appropriate price for a company’s stock? How does a company determine its value? The stock’s performance on the stock exchange provides the answers.

The economics of trickle-down.

Numerous individuals, whether large or small, can profit from the strengthening of the economy and any increase in company profits by investing in stocks. Thus, even consumers can gain from their own purchases.

Wealth generation.

Historically, stocks have been among the top investments for wealth generation. Their value has the potential to increase over time. This can assist investors to attain various life goals.

Sentiment meter.

In addition to financial and economic reasons, the stock market also responds to a variety of sociopolitical variables. This is because corporations perform better in a favourable social and political climate. Consequently, the stock market frequently reflects the sentiments of the broader population.