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What is stock market ? The stock market is a financial market, where corporate share bonds and other personal instruments are trades. It is also called equity market. The main purpose of the stock market is to provide companies with an opportunity to raise capital and to provide investors with an opportunity to buy and sell shares in those companies. |
A single country or region may have multiple stock trading venues, that allow transactions in stocks and other types of securities. Although both stock market and stock exchange are used for this purpose only, a stock exchange is often a subset of the stock market.
If someone say that he trades in the stock market, it means that he buys or sells share equities on a stock exchange, which is a part of the stock market. New York stock exchange among major US stock exchange ( NYSE), Nasdaq and the include of Chicago board options exchange (CBOE).The two major stock exchanges in India are (BSE) Bombay Stock Exchange and (NSE) National Stock Exchange of India Ltd.
What is share market?
The meaning of share in common language is used to represent a fraction. When a company wants to raise capital, it sells a part of its ownership to the public. This part is called a share. People who buy these shares are called shareholders of the company.
Let us take a real example to understand the meaning of share.
For example, the total capital of a firm is Rs 10 lakh. The firm divides its total capital into 1000 parts at an equal price. Now each divided part of the company's capital is the smallest part of the company's capital.
In this way, the price of each part i.e. share will be Rs 100. And this small part is called a share. If you buy shares of that company, then you will become the owner of the share you pay to buy.
Note:- Share is also known as stock, equity in the stock market. Thus, the words share, stock or equity all have the same meaning.
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