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Financial Services
The stock market is like a marketplace where investors trade in various financial instruments like bonds, stocks, and other derivatives. The Indian stock exchanges are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Firms seeking to raise capital sell bonds or Initial Public Offerings (IPOs) on the stock exchange. Investors can then benefit from buying and selling these bonds, or IPOs.
What is the stock market?
The stock market is a regulated marketplace where investors can trade various financial instruments such as stocks and bonds. It is also a platform for companies to raise capital by issuing shares to the public through an initial public offering (IPO).
How do stocks work?
Stocks refer to units of ownership in a company. Usually, a company opens up its ownership to the general public to raise capital. If you purchase stocks, you own a stake proportionate to the number of shares you purchase. Stocks are a popular investment option and can appreciate in value over time. You can also trade them on the stock exchange to maximize on fluctuating prices and earn a profit.