Stock Market Basics: How Trading Works in India on NSE & BSE

What is the stock market, and how does it work?

The stock market is a place where people buy and sell shares (also called stocks or equities) of publicly listed companies.
When you buy a share, you become a part-owner of that company, even if it’s a very small portion.

Where Does Trading Happen?

In India, stocks are traded on official platforms known as stock exchanges. The two main exchanges are:
  1. NSE (National Stock Exchange)
  2. BSE (Bombay Stock Exchange)
These exchanges act like a marketplace where buyers and sellers come together to trade shares in real time.

How Do You Buy or Sell Stocks?

To trade in the stock market, you need to use a stockbroker or an investment platform, like Bullsmart.

Here’s how it works:
  1. You place a buy or sell order for a specific stock through the app or website.
  2. If there’s a matching order on the other side (someone willing to sell what you want to buy, or vice versa), the trade is executed instantly.
  3. The stocks are delivered to your Demat account, and the money is debited or credited accordingly.

Why Do Stock Prices Change?

The price of a stock keeps changing during the day based on supply and demand:
  1. If more people want to buy a stock (high demand), the price goes up.
  2. If more people want to sell a stock (high supply), the price goes down.
These movements are influenced by many factors like:
  1. Company performance
  2. Economic news
  3. Market sentiment
  4. Global events
The stock market allows you to invest in companies by buying shares. Using a broker like Bullsmart, you can place buy/sell orders that are executed on stock exchanges like NSE and BSE. Prices change based on demand and supply, making the market dynamic and full of opportunities.

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