Definition of stock market

It is a virtual place where anyone buys or sell (trade) shares of public listed businesses who have demat or trading account. 

OR

It is a virtual place where FII, DII, investors and traders buy or sell shares of public listed companies. 

Explanation. 

Shares/securities are traded in two-phase. 

 1. The Primary market:-

 Bonds and shares are generated in the primary market. IPO is an example of a  primary market. 

IPO refers initial public offer. 

When new securities are sold in the primary market then they trade in the secondary market.

 2. The secondary market:

Securities are traded in the secondary market by investors, FII, DII.  

It also gives opportunities for the small trader to trade. In India, both markets are controlled by SEBI (Security and Exchange Board of India).

  FAQ

1. What is a demat and trading account? 

A demat account is an account that holds the shares in digital or electronic form. It also holds bonds and mutual funds.

let's understand by an example: 

Assume you have a virtual school bag in which you put any books. The minimum no. of things is 1. We put math book 1, English book 2, Hindi book and social science 5. 

likewise,  In the demat account different stocks share are put together.  The minimum number of any share is  1.

Trading account : 

This account is used by traders or investors to buy and sell stock securities that hold in a demat account.

Primarily, the trading account used intraday trades to trade shares and bonds. 

A trading account is a medium by which traders buy and sell securities. 

If any trades forget to sell share then it goes to demat account after T+2 days (after trade days).

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