What is the Meaning of the Indian Stock Market?


The Indian stock market is a place to issue stocks of companies based in India and trade numerous financial assets, like bonds, mutual funds, and derivatives, on stock exchanges. The stock market operates online through various stock exchanges. 

Stock markets are based on an online trading system after adopting an online trading system in 1996. Primarily, there are two types of stock markets - IPO market and secondary market. 

Companies use the IPO or primary market to issue their shares to the public for the first time, and the secondary market is used for trading those shares and other financial securities. Another part of the Indian stock market is the over-the-counter (OTC) market. It is the market for unlisted stocks on an exchange. Thus, Indian stock markets are the meeting place for buyers and sellers of financial assets. 

Prominent stock exchanges in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Key market indexes are SENSEX and NIFTY on the BSE and NSE, respectively. These indexes help investors with a historical comparison of market investment returns against other investments. It is a key indicator of India's sectoral and overall economic performance based on highly up-to-date information.

Read also: What Are The Risks Involved In Online Trading?

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