To learn about how you can earn from stock market first of all one has to understand how it works. When a person want to buy or sell shares in the stock market then he has to first place an order with a broker or can do themselves using online trading systems. ( explained later )
When you place the buy order, the message is transferred to exchange ( either NSE National Stock Exchsnge or BSE Bombay Stock Exchange ) and the order stays in queue of exchange's other orders and get executed if the price of that share comes to that value. Once you get confirmation of this transaction of purchased share, will be sent to your Demat account . The shares will be stored in demat account in an electric format.
TYPES OF MARKET
Basically there are two types of markets,
1. Primary market
2. Secondary market
Primary market
A Primary market is a place where a companies, government and other corporate bodies sell new shares and other financial products. In Primary market trading is not allowed.
Like any listed company sells IPO ( initial public offer ) then it happens in primary market or whenever any already existing company goes public then at that time it issue an IPO in primary market.
Secondary market
A market place where actual share trading ( Buying & Selling ) takes place is called Secondary market.
Majority of share trading in India happens in two top exchanges NSE & BSE.
When you place the buy order, the message is transferred to exchange ( either NSE National Stock Exchsnge or BSE Bombay Stock Exchange ) and the order stays in queue of exchange's other orders and get executed if the price of that share comes to that value. Once you get confirmation of this transaction of purchased share, will be sent to your Demat account . The shares will be stored in demat account in an electric format.
TYPES OF MARKET
Basically there are two types of markets,
1. Primary market
2. Secondary market
Primary market
A Primary market is a place where a companies, government and other corporate bodies sell new shares and other financial products. In Primary market trading is not allowed.
Like any listed company sells IPO ( initial public offer ) then it happens in primary market or whenever any already existing company goes public then at that time it issue an IPO in primary market.
Secondary market
A market place where actual share trading ( Buying & Selling ) takes place is called Secondary market.
Majority of share trading in India happens in two top exchanges NSE & BSE.
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