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<br>A stock market is a place where persons purchase/sell shares of publicly listed companies. The crucial market is where companies float shares to the population in an initial public offering (IPO) to raise funds.<br>At present, because of the Internet and highly developed tools, buying and selling stock occur anywhere in India and from the overseas kingdom. There is no need to be physically present in exchange like NSE and BSE. Stock markets are a perfectly competitive market.
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STOCK MARKET A stock marketis a place where persons purchase/sell shares of publicly listed companies. The crucial market is where companies float shares to the population in an initial public offering (IPO) to raise funds. • At present, because of the Internet and highly developed tools, buying and selling stock occur anywhere in India and from the overseas kingdom. There is no need to be physically present in exchange like NSE and BSE. Stock markets are a perfectly competitive market.
EXAMPLE if ‘Raj’ wants to sell shares of ABC Company, the stock market will aid him to meet the seller who is keen to buy ABC Company. However, it is essential to note that a person can deal in the stock market only through a registered intermediary known as a stockbroker. The purchasing and selling of shares take place through an electronic medium.
UNDERSTANDING STOCKS • How to place a trade • Know when to sell. • Evaluate a stock • What makes stocks more • Steps to get started • Where to get advice • How margin works • Why investor lose money
Giant Stock Markets • NYSE (New York Stock Exchange) • NASDAQ - America • Dow Jones • Toronto stock exchange • Tokyo Stock Exchange • London Stock Exchange • Bombay Stock Exchange, India • National Stock Exchange, India • Hong Kong stock exchange, Hong kong • Shanghai stock exchange, China
Top 10 companies in India by market capitalization • 1 Reliance Industries • 2. Tata Consultancy Services (TCS) • 3. HDFC Bank • 4. Infosys • 5. Hindustan Unilever (HUL) • 6. Housing Development Finance Corporation Limited (HDFC) • 7. ICICI Bank • 8. Kotak Mahindra Bank • 9. State Bank of India (SBI) • 10. Bajaj Finance
WHY IS INVESTING SO IMPORTANT? • Saving is the surplus of our income over our spending. normally, this lies in the savings bank account or fixed deposits with a bank. The money is very secure, earning a little rate of interest and it can be in hand as and when necessary (high liquidity). in contrast, this money could be invested for meeting long-term goals. whereas some investments may rise or fall in value over time, prudent investments would earn a lot more than the bank's savings account.
CONCLUSION • It helps to raise capital for business, mobilize savings for investment, facilitates the growth of companies, and enables profit sharing. It assists in creating investment opportunities for small investors, and raising capital for development projects taken up by the government. It acts as a barometer of the economy .