| With the increase in purchasing power and surplus | | | | of capital in stocks. Stock brokers are individuals or |
| income of people, the stock market has assumed a | | | | firms who hold stocks and trade them to smaller |
| very important role in the lives of individuals - | | | | investors, thus having a role in temporarily controlling |
| whether working in an MNC or running a business. | | | | the prices of shares. The demand-supply gap |
| The name of Mumbai conjures up the image of the | | | | determines the price of shares in the market. Stock |
| Bombay Stock Exchange (BSE) with stock traders | | | | trading is largely dependent on prevalent economic |
| bidding for stock prices at the top of their voice. | | | | conditions; it rises with the booming economy and |
| Apart from stock exchanges and bidding, much more | | | | falls with inflation grasping the world order. |
| is involved in stock market trading - it is related to | | | | Be it a businessman, corporate personnel, or |
| individuals' innate nature of profit making. | | | | housewife, buying and selling of shares can be an |
| This article educates readers on the simple | | | | easy way of earning (or as a matter of fact losing!) |
| terminologies related to the stock market - it is a | | | | money sitting at home. This has been made easier |
| place where individuals or companies sell/purchase | | | | through the services of various brokerage firms. |
| shares at a price agreed upon by both parties. | | | | They are professionals dealing in share trading and it |
| Organizations may want to raise capital for expanding | | | | is advisable to use their services when entering the |
| their business. For this, they first get themselves | | | | stock market. The fluctuations in share prices are |
| listed in the stock exchange. Then they issue small | | | | displayed in stock indices on a real-time basis. The |
| shares of a portion of their capital and sell those to | | | | time for which one can bid in the stock market is |
| individuals or companies through the stock exchange. | | | | called its trading hours; for example, for NASDAQ it is |
| In other words, stock exchange facilitates the buying | | | | 9:30 am to 4:00 pm. Some individuals trade within the |
| and selling of stocks, called stock trading, which may | | | | trading hours of a single day, that is, buy shares |
| happen at a real or virtual exchange. Trading happens | | | | when the market opens and sells them before the |
| when a potential buyer bids for a certain price on the | | | | market closes. They are known as day traders who |
| stock and the seller agrees on that price. | | | | follow day trading of stocks. An institutional day |
| The stock index indicates the price of any stock at a | | | | trader works for some financial organization, while a |
| given time. In New York Stock Exchange (NYSE) and | | | | retail day trader works on his own or with partners. |
| BSE bidders and sellers carry out stock transactions | | | | Online stock investing has opened up new vistas for |
| on the floor; these are physical exchanges. The | | | | share trading for common man. With information on |
| NASDAQ is a virtual exchange or an online stock | | | | cheapest stock trading now only fingertips away, |
| exchange, where buying and selling happens over a | | | | they can learn about companies and the trends in the |
| network of computers and is known as online stock | | | | stock market to make prudent financial investments. |
| trading. Instead of a physical index an online stock | | | | In short, the stock market and trading in shares has |
| exchange uses an online index to list its share prices. | | | | become a second nature for the urban population of |
| Stock traders are individuals who invest small amount | | | | today's world. |