The stock market is a market where shares of companies can be bought and sold. Like any other market, in the stock market too, buyers and sellers meet each other and negotiate the price to finalise the deal. Earlier, buying and selling of shares was done through verbal bids and the buyers and sellers used to make deals verbally. But now all these transactions are done through computers connected to the stock exchange network.
This facility is also available on the Internet. Today the situation is such that the buyers and sellers do not even know each other.
How does the stock market work
In a way, shares are auctioned here. If someone wants to sell the shares, then the shares are sold to the highest bidder. Or if someone wants to buy the shares, then the shares are bought from the seller who is ready to offer the lowest price.
Importance of stock market
Stock markets are an important part of the economy of any developed country. Just as roads, rail transport, electricity, water are essential for the development of a country, village or city, similarly stock markets are essential for the development of industries in the country. Capital is required to run industries. They get this from the stock market. Through the stock market, every common man can provide his participation in the biggest industries. With this kind of participation, he can become an equal partner in the profits of big industries. Suppose, if any citizen feels that Reliance or Infosys is going to earn huge profits in the coming time, then he can become a partner in this profit by buying shares of these companies, and to do this, a system is required and the stock market provides that. A good stock market ensures that every investor gets an equal opportunity
