The stock market lets buyers and sellers negotiate prices and make trades. … Companies list shares of their stock on an exchange through a process called an initial public offering, or IPO. Investors purchase those shares, which allows the company to raise money to grow its business.
The stock market allows numerous buyers and sellers of securities to meet, interact, and transact. Stock markets allow for price discovery for shares of corporations and serve as a barometer for the overall economy. Since the number of stock market participants is huge, one can often be assured of a fair price and a high degree of liquidity as various market participants compete with one another for the best price.
For example, there may be three buyers who have placed orders for buying Reliance shares at Rs1000, Rs1005, and Rs1010, and there may be four sellers who are willing to sell Reliance shares at Rs1010, Rs1120, Rs1150, and Rs1020. The exchange (through automated trading systems) needs to ensure that the best buy and the best sell are matched, which in this case is at Rs1010 for the given quantity of trade.
Can I invest 100 RS in share market?
The answer to this question is “Definitely, Yes”. You can invest Rs 100 in share market. There are many shares in India whose share price is trading below Rs 100. … Therefore, you can buy one share of such stock whose current share price is below Rs 100.
Take a look at the many ways by which you can learn share market:
- Read books.
- Follow a mentor.
- Take online courses.
- Get expert advice.
- Analyse the market.
- Open a demat and trading account.
Here are five steps to help you buy your first stock:
- Select an online stockbroker. The easiest way to buy stocks is through an online stockbroker. …
- Research the stocks you want to buy. …
- Decide how many shares to buy. …
- Choose your stock order type. …
- Optimize your stock portfolio.