Now a day every one is talk about stock market in India. you want to learn the stock market? you are at right place. You read this blog to learn and understand the working of stock market.

STOCK:

A stock is a part ownership in a company. It provide a share of the companies return for the capital invested. For Example if the company has a total number of stock 1000 shares and you buy 1 share of the company, you have 1/1000 or 0.01 per cent ownership of the company.

STOCK EXCHANGES:

Most of trading the stock market of India takes place through its mainly two stock changes, NSE (Nation Stock Exchange) and BSE (Bombay Stock Exchange).

The  Stock Exchange in India serves as a market where trades as financial instruments like Stocks, Bonds and commodities. This platform where buyers and sellers comes together to the trade financial tools during specific hours of any business day while adhering to SEBI (Securities Exchange Board of India) well-defined guidelines .

TYPE OF STOCK MARKET:

In the stock market can have many different meanings, but  it is often used a common term to denote both the Primary Market and Secondary Market,

PRIMARY MARKET :

Primary Market are new stocks, bonds or other securities that offered to the public by investment bankers,two types primary market issues of common stocks IPO (Initial Public Offering) and Private Placement. Seasoned issues public offering, private placement, right offering and stock splits

SECONDARY MARKET :

Secondary Market refers to a market where securities are traded as after being initially offered to the public in the primary market or listed on the stock exchange. Majority of the trading is done in the secondary market, the secondary market comprises of equity market and the debt market.

THIRD MARKET :

Third market in finance refers to the trading of exchange listed securities in the OTC (Over The Counter) market. The trades allow institution investors to trade blocks of securities directly, rather than through an exchange, providing liquidity and anonymity to buyers.

FOURTH MARKET :

Fourth market trading is direct institutional to institutional trading without using the service brokers, that isw avoiding both commissions, and the bid ask spread. Trades are usually done in blocks. It is impossible to estimate the volume of the fourth market activity because trades are not subject to reporting requirements. Studies have suggested that several millions of shares are traded per day.