Stock Market Basic to Advance : Lecture 1
We Rise By Lifting Others this sounds like a fantastic initiative! Starting a series on Stock Market Basics to advance is a great way to educate and empower individuals who are interested in understanding the intricacies of the stock market. Breaking down complex concepts into simple language can make it more accessible to a wider audience, encouraging more people to participate in the financial markets.
By sharing insights on what the stock market is, explaining key terms and concepts, and providing guidance on trading strategies, you'll be helping your audience gain confidence and knowledge to make informed investment decisions.
Remember to emphasize the importance of research, risk management, and continuous learning throughout the series. And of course, encouraging positivity and a smile along the way can make the journey even more enjoyable for your readers or viewers.
Best of luck with your Stock Market Basics series! It's a wonderful way to contribute to financial literacy and empower others to take control of their financial futures.
1. What does Trading mean?
Trading is an exchange on goods from one person or entity to another, often it is exchange of money.Or
Trading is the exchange of goods, services, or financial instruments between two parties. It typically involves the exchange of assets for money or other assets.
Stock Market Basics to Advance - Lecture 1
2. And, who is Trader?
Trader is nothing but person who makes profit-loss from price fluctuations.
Or
Traders are individuals or entities who engage in this exchange process with the aim of making a profit from the fluctuations in prices of these assets
They buy assets at a lower price and sell them at a higher price, or vice versa, depending on market conditions and their strategies. Traders can operate in various markets, including stocks, commodities, currencies, and derivatives.
3. What is Stock Market?
In Simple words, will understand Stock Market means. A Place where buyers and sellers comes together to do transaction of stocks.
The stock market serves as a crucial mechanism for companies to raise capital by selling shares to investors and for investors to potentially profit from the growth of these companies.
Additionally, it provides liquidity, allowing investors to easily buy and sell stocks.
4. Now, what is Stock Exchange?
A Place where stocks are listed is nothing but Stock Exchange.
Or
A stock exchange is a regulated marketplace where securities such as stocks, bonds, and other financial instruments are bought and sold.
- It provides a platform for companies to list their shares and for investors to trade these securities.
- Stock exchanges facilitate transparent and efficient trading by matching buy and sell orders through a centralized system.
- In India, there are two Stock Exchanges i.e. BSE and NSE
Both BSE and NSE play critical roles in the Indian financial markets, providing investors with avenues to invest in a wide range of securities and contributing to the growth and development of the economy.
a) BSE ( Bombay Stock Exchange )
I’m sure; you all must have seen this photo at some point of in your life. This is nothing but Bombay Stock Exchange. Established in 1875, BSE is one of the oldest stock exchanges in Asia. It is located in Mumbai and is considered one of the largest exchanges in India in terms of market capitalization.
BSE is an Indian stock exchange which allows traders, investors to trade in various stocks, equities, mutual funds, commodities, derivatives, etc.
BSE is Average of Top 30 Stocks in BSE.
Option Trading is only done in NSE not possible in BSE.
b) NSE ( National Stock Exchange )
Founded in 1992, NSE is the leading stock exchange in India in terms of trading volume and turnover. It is also headquartered in Mumbai and operates on an electronic trading platform, providing faster and more efficient trading compared to traditional floor-based exchanges.
NSE is India’s largest financial market. But in case of Liquidity, NSE is clear winner, since volumes traded in NSE is much higher than BSE. It is Average of Top 50 Companies Stock in India.
