Indian Stock Market Terminology

Stock market based on buying and selling of shares.Every company needs lots of money for investment that's why organization deal with stock market and make shareholders.

Two main stock exchange of India
1) BSE (Bombay Stock Exchange )
2)NSE  (National Stock Exchange)

BSE-.The Bombay stock exchange is the  oldest exchange in Asia. BSE SENSEX leads  the top 30 companies.BSE is Asia's first exchange and world’s fastest exchange.

NSE- National Stock Exchange is the India's leading exchange. NSE NIFTY leads the top 50 companies.

If any of the people want to trade in the stock market so first need to open  Demat and trading account. Demat account holds all information of the shares and trading account for the transaction of the payment.

Trading or investment  means buy or sell the share.
1)Long term
2)Short term
3)Day trading/ intraday trading

Long term trading-In this case the client can hold the share more than one year.

Short term trading-In this case the client  can hold the share less than one year.

Day trading or intraday trading- it means we can buy and sell the share  in a day. it is one-day trading also called intraday trading.

There are two types of market in trading-
1)Cash Market
2)Derivative Market

Cash Market-In cash market, exchange the share between the seller and buyer takes place in the present     .

Derivative Market    -In this market contract for the share. we can buy or sell the lots. based on buying and selling of shares.Every company needs lots of money for investment that's why organization deal with stock market and make shareholders.