Meanwhile, the fall in global financial markets today lead to a slowdown in the domestic stock market in early trade. It caused due to selling in public sector enterprises, auto, Meta, and banking sectors. The Bombay Stock Exchange’s Sensex index fell by more than 288 points, while the National Stock Exchange’s Nifty went below 11,400 points.
To discuss financial markets today we need to know what the finance market is and how it works, how to buy shares in stock in the stock market. So, let’s know in details about the topic of financial markets today.
WHAT IS FINANCE MARKET?
Whenever we imagine of the market, our mind shows an image of a place where there will be many shops or a mall, where you can go shopping. But the stock or finance market is not such a market. The buying and selling of shares in the stock market are done entirely by the computer in an automated manner.
Any buyer or buyer shares his or her order on the exchange by his or her broker and after a moment’s notice; the automation of the deal is matched according to the pending orders. In the working hours of the stock exchange, brokers place their order in their order terminal for their customers. In return, the broker gets brokerage.
How does the finance market work?
We can say that there are three broad categories of stock exchanges:
Brokers are members of the stock exchange and only they can trade in that stock exchange. Clients can not go directly and buy or sell shares; they only have to go through the broker. It is not that there is a need for a considerable amount to invest in the stock market, but you must know first at least how much money you can invest in the financial markets today.
There are mainly BSE widely known as the Mumbai Stock Exchange and NSE, which are the National Stock Exchange on which shares are traded. BSE and NSE are the world’s largest stock exchanges. Most of the companies whose shares are traded in the market are listed on both the stock exchanges but it may also be that a company is listed on one of these two exchanges.
Demat account is necessary
Majority of the country’s banks or their subsidiaries and other companies work as brokers in these exchanges. Customers can go to these broker companies and open their account with the broker by giving information about their demat account. Thus the demat account of the customer gets linked to the account of the broker and the shares purchased or sold are transferred from the customer’s demat account. Similarly, the customer can also link his bank account with the broker’s account, from which the amount of the shares purchased or sold is transferred to the customer’s account.
Trading account joins the demat account
The shares purchased by the customer remain in their demat account in electronic form whenever a company declares the dividend, then the amount of dividend is reached in the bank account linked to the demat account. Similarly, if the company announces bonus shares, bonus shares also arrive in the shareholder’s demat account. When the customer sells the shares, which share transfer is transferred from the same demat account.
To continue business in shares, an investor must have a demat account, a trading account with the broker and a bank account linked to it. Many banks also offer the facility to open three in one accounts. Most Brokers House also provides you with the convenience of online stock trading, apart from this; you can also order your call.
If you also want to invest in the stock market, then it is very important for you to understand what the stock market is and how the stock market works.
Financial Markets Today: Guide For You To The Stock Market was last modified: January 19th, 2019 by Amit Bose