How Does the Indian Stock Market Work?

For a new investor, the stock market can make them feel a lot like legalized gambling market but reality is different as it is driven by supply and demand chain where buying and selling of stocks happen. The supply is determined by the availability of number of stocks for sale and the demand indicates the reverse of it i.e., number of shares that investors want to buy from the seller. It's important here to note that if anyone bought / purchased a share, then it implies that someone was ready to sell that share  on the other end and vice versa. The demand for stock can change due to the mindset of the investors driven by following factors:  Economic fundamentals, Income / Wealth / Taste of consumers, Fear of defense failure, or Company earnings etc.,.

Read More

Indian Stock Exchanges: History & Introduction to Beginners

Stock exchanges

Stock exchange means anybody of individuals, whether incorporated or not constituted for the purpose of regulating or controlling the business of buying selling or dealing in securities. The Stock exchanges deal with Securities which include:

i)                  Shares, scrips, stock, bonds, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate.

ii)                 Government Securities and

iii)               Rights or interest in securities

The Securities Contracts (Regulations) Act, 1956 defines stock exchange “as an association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling the business of buying, selling and dealing in securities”.

Read More