The stock market is a marketplace where you meet buyers and sellers for
trading in stock market and shares.
Companies who want to sell their shares contact the share market and the market
issues shares for trading in the name of the company.
How Stock Market
Works
At first, a company gets listed in the primary market through an
Initial Public Offering (IPO) and the stocks have been issued. The stocks
issued in the primary market are then allotted to investors who had bid for the
same. Once listed, the stocks can be traded in the secondary market where most
of the trading happens. Then there comes the concept of stock brokers and
brokerage firms. The list of stock brokers in Kerala is
getting bigger day by day as more and more people are turning towards share
trading as it repays you well more than just a savings account. The
brokerage firms act as a mediator between you and the stock exchange to make
the process easy for their customers.
The share trading process is
now done through computers and it can be completed within minutes today. When
you place an order to buy, the broker sends it to the exchange. And once the
buyer and seller are fixed, the price is fixed, the exchange communicates back
to the broker saying the order has bee confirmed. Many levels of communications
happen between this, but all become digitalized as said earlier and now trading
in stock market happens within a matter of time.
Market Regulation
The responsibility of development, regulation and supervision of the
stock market lies with the Securities & Exchange Board of India (SEBI),
which is an independent authority. SEBI has the power to lay down the market in
line with the best market practices and they can impose penalties on market
participants in case of any breach.
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