How to Stock Market Works_

1. HOW TO STOCK MARKET WORKS How to Stock Market Works: Hello Friends… Welcome, all of you on our wonderful website… Today we are going to know in this article, How the Stock Market Works… In today’s era, people’s interest in the stock market is continuously increasing. Therefore, if you also want to start trading in the stock market, then you should know about How the Stock Market Works. Since, unless you are aware of the working of the stock market, then you will find it difficult to trade in the stock market. How Stock Market Works:

2. How Stock Market Works: Come, before knowing How the stock market works, let us know what the stock market? If you want to understand the nuances of the stock market, then you should also know about the type of stock.. Stock market is an electronic market where investors can buy and sell their shares. To put it simply, the stock market is a place to buy and sell stake in a listed company. It is in BSE or NSE itself that the shares of a listed company are bought and sold through a broker. Let us take a real life example to fully understand this concept of How the stock market works. For example, Rohit and Bali are two users who have been following Infosys stock for a long time. Currently, it is trading at a price of ₹1100. Suddenly, big news came in the market that the CEO of Infosys, Vishal Sikka resigned from his post due to some internal conflict. The Infosys stock fell 10% from its current price due to this news. Infosys, being a blue-chip stock, you do not expect such a sharp fall in such stocks.

3. Now how does the stock market work here? These are two different viewpoints. Rohit has 500 shares of Infosys and believes that there is no good news coming for Infosys in the coming days, so this stock may fall. He decided to exit his shares at the current price by placing a stop loss of ₹950 to avoid further losses. Bali, on the other hand, was considering this as an opportunity as the stock had not touched this price in the last 2 years and was also confident that the blue chip stock would come back to its price of ₹1,100 within the next 8 to 12 months, as it was in 2008. Same happened with this stock. This was an optimistic position and he decided to buy 500 shares at ₹950. Since both the users are eyeing the current price of Infosys at ₹950 it is possible that both the orders will get executed. Where Rohit will come out of the share, Bali will get 500 shares of Infosys.

4. This is what happens in the stock market. Based on the concept, one user buys the shares and another sells them. Moreover, the stock market provides a single platform to both the buyer and the seller where both can transact easily. Also Read: Sensex :- 10 ways make money online Meaning of Bull and Bear in Share Market ● ● ● ●