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Knowing the Stock Market

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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