What is Share Market? and How did Share Market works?


What is Share?

A Share is a single unit of Ownership of the company divided into small parts and each part is called as Share or Stock. A person has a share of a company that means they have part of ownership in that company.
A person having a maximum share in a company that means maximum ownership in a company. Now Understand what is share market and how did share market works?

When you buy a share in a Company, you become part-owner of this company.


What is Share Market?

What is Share Market?, Let’s Understand it, The share market is a source for companies who wants to raise funds and for investors to buy part-ownership in these growing businesses and grow their wealth. After becoming a shareholder, an investor earns a part of the profits earned by the company in the form of a dividend

. In simple words A Share market is the place where buying and selling of shares takes place.


How did Share Market works?

When a person wants to buy or sell shares in the share market then he has to first place the order with a broker or can do self-using online trading systems ( By Demat Account). When you place the buy or sell order, the message is transferred to the exchange [NSE {National Stock Exchange} or BSE {Bombay Stock Exchange}] and the order stays in the queue of exchange’s other orders and gets executed if the price of that share comes to that value. Once you get the confirmation of this transaction, the shares purchased, then it will be sent to your Demat account. Then these shares will be stored in Demat account in electronic format.

You can buy or sell Share anywhere, where there is a computer or mobile

with an internet connection and Demat Account

People who own shares in a company are called Shareholders or Stakeholders


What is Stock Exchange and What are BSE & NSE?

Stock Exchange:
The most widely understood and accepted definition of a stock exchange is that it is a regulated and organized place where investors can buy or sell stocks, bonds, and other securities.

In India, there are two stock exchanges, the Bombay Stock Exchange, and National stock exchange.

1. What Is BSE [Bombay Stock Exchange]

BSE (Bombay Stock Exchange) established in 1875 as the Native Share and Stock Brokers’ Association, Located in Dalal Street Mumbai, India,

BSE (Bombay Stock Exchange) is the Asia’s first & the Fastest Stock Exchange in world

The speed of BSE (Bombay Stock Exchange) is 6 microseconds and one of India’s leading exchange groups.

On the Bombay Stock exchange, there are approximately 5000 companies listed. This is the highest number of companies.

The market capitalization of the Bombay Stock Exchange more than $2.2 trillion on as of April 2018.


2. What Is NSE [National Stock Exchange]

The National Stock Exchange [NSE] of India Limited is the leading stock exchange of India, located in Mumbai. It was established in 1992.

NSE is the first stock exchange which introduced an advanced electronic trading system in India.

The National Stock Exchange or the NSE is new as compared to the BSE. Therefore, NSE has more than 1,600 companies listed. NSE is Larger as compared to BSE in terms of daily turnover and number of trades.

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