What Is the Stock Market?
Your Journey to Financial Freedom Begins Here
Introduction
The stock market is a place where people buy and sell shares of publicly listed companies. If you're hearing about it for the first time, think of it as a big marketplace — but instead of vegetables or clothes, people trade ownership in companies.
What You'll Learn in This Chapter
Stock Market Basics
What it is & why it matters. Understand the fundamental concepts that drive the financial markets.
Stock Exchanges
NSE, BSE explained. Learn about the platforms where stocks are traded in India.
Stocks & Shares
What they represent. Discover how ownership in companies is divided and traded.
Who Can Invest?
Eligibility & platforms. Find out if you can invest and where to get started.
What is the Stock Market?
The stock market is where companies raise money and investors grow their wealth. When you buy a stock, you become a part-owner of that company.
Example: If you buy 1 share of Infosys, you own a small piece of Infosys!
Popular Stock Exchanges in India
India has two major stock exchanges:
| Exchange | Full Form | Founded |
|---|---|---|
| NSE | National Stock Exchange | 1992 |
| BSE | Bombay Stock Exchange | 1875 |
✅ You can trade shares on both using platforms like Zerodha, Upstox, Groww, etc.
Why Should You Learn the Stock Market?
Earn Passive Income
Generate wealth while you sleep through dividends and capital appreciation.
Beat Inflation
Protect your money from losing value over time by investing in growing assets.
Achieve Financial Freedom
Build wealth that can give you freedom to live life on your terms.
Make Informed Decisions
Understand market movements and make better investment choices.
"The stock market is the story of cycles and of the human behavior that is responsible for overreactions in both directions."
Basic Terms You Should Know
| Term | Meaning |
|---|---|
| Share | A unit of ownership in a company |
| IPO | Initial Public Offering – when a company first offers its shares to the public |
| Sensex/Nifty | Indices that show how the overall market is performing |
| Demat Account | Where your shares are stored digitally |
Nifty 50 Index Growth
Tomorrow's Topic:
How to Open a Demat Account in India (With Steps)