It is common place where supplier and buyer meet. Supplier sales product and buyers buy paying money. Likewise there is a market where sellers are selling stocks and buyers are buying. It is called stock market.
Little confused, right ? Ok. Some people own stock of a company. Some people want to buy it and the owner also wants to sell it. At common platform they meet each other and exchange the stock ownership with money. This is stock market. Earlier, even now also in some places stocks are being traded in an Office like any other shop. It is called Floor trading. You have to go there give money and get the stock certificate. This stock certificate is proof of your ownership. You have to transfer the certificate when you sell your stock. This trading platform is called stock exchange. We go in details about stock exchanges in subsequent chapter.
You would be finding difficult to imagine going for floor trading in such electronic age. Yes, Computer and Internet has brought the trading floor to your desk. Now you can buy or sell stock right from your computer. Now stock market is an electronic market where you can buy or sell stock. It is called online trading. Organization providing platform for this market they are designated as stock broker. We will go in detail about stock broker in subsequent chapters.
Little confused, right ? Ok. Some people own stock of a company. Some people want to buy it and the owner also wants to sell it. At common platform they meet each other and exchange the stock ownership with money. This is stock market. Earlier, even now also in some places stocks are being traded in an Office like any other shop. It is called Floor trading. You have to go there give money and get the stock certificate. This stock certificate is proof of your ownership. You have to transfer the certificate when you sell your stock. This trading platform is called stock exchange. We go in details about stock exchanges in subsequent chapter.
You would be finding difficult to imagine going for floor trading in such electronic age. Yes, Computer and Internet has brought the trading floor to your desk. Now you can buy or sell stock right from your computer. Now stock market is an electronic market where you can buy or sell stock. It is called online trading. Organization providing platform for this market they are designated as stock broker. We will go in detail about stock broker in subsequent chapters.
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