The stock market is like a big store where people can daily buy and sell shares of companies. When you buy shares, it means you own a small part of that company. It's like buying a piece of pizza!
In India, there are special places called stock exchanges, like the NSE and BSE, where people go to buy and sell shares. Companies can sell or offer their shares to the public so that people can buy them and become part-owners of the company.
To buy or sell shares, you need help from special people called stockbrokers. They know how to trade shares on the stock exchanges. There are also places called depositories that keep track of the shares you own.
When you want to buy shares, you place an order at the stock exchange with the price you are willing to pay. The stock exchange matches your order with someone who wants to sell shares at that price. When the trade happens, the shares get transferred from the seller’s account to your account.
There are different kinds of people who participate in the stock market. Some are big companies, like insurance companies and mutual funds. Others are individual people like you and me who want to invest and become part-owners of companies.
The stock market has special indicators, like the Nifty 50 and the Sensex, which show how well the market is doing. These indicators help us understand if the prices of shares are going up or down.
The stock market is regulated by a special organization called SEBI. They make sure that everything is fair and transparent in the stock market. They also protect the interests of investors like you and me.
