Institute of Financial Markets

Introduction The stock market is often called the heartbeat of an economy. It is a place where ownership of companies in the form of stocks is bought and sold. But for many beginners, it remains a complex and intimidating world. Let’s break it down, with examples from the Indian stock market, and understand how it truly works. What is a Stock? A stock represents ownership in a company. If you buy shares of Reliance Industries, you own a small part of that massive business empire. The value of your ownership fluctuates with the performance of the company and the demand for its shares. What is a Stock Market? The stock market is a platform where buyers and sellers meet to trade stocks. In India, the two main stock exchanges are: • BSE (Bombay Stock Exchange) – Asia's oldest stock exchange. • NSE (National Stock Exchange) – Known for its modern electronic trading system. Example: When Infosys first listed its shares on the Indian stock market, it was through an IPO (Initial Public...