1.4What is the stock market?
The stock market is a marketplace where people buy and sell shares (small pieces of ownership) of companies. In India, this happens mainly on two exchanges: NSE and BSE.
Imagine trying to sell a share of a company without a marketplace. You would need to find a buyer yourself, agree on a price and make sure they really pay. The stock market brings millions of buyers and sellers together, shows a fair price in real time and makes sure every trade is completed safely.
Think of a big vegetable mandi. Farmers bring vegetables, buyers come to buy, and the price of tomatoes goes up when many people want them and down when there are too many tomatoes. The stock market is a mandi for company shares, except everything happens on computers.
When you buy 10 shares of Reliance Industries on your phone, your order goes to the NSE (or BSE). The exchange matches it with someone who wants to sell 10 Reliance shares at that price. Within seconds the trade is done.
- 1You (buyer) place an order in a broker app
- 2Broker sends it to NSE/BSE
- 3Exchange matches it with a seller
- 4Trade confirmed
- 5Shares reach your Demat account (next working day)
- ✓Ordinary people can own parts of big companies with small amounts.
- ✓Prices are visible to everyone.
- ✓You can usually sell quickly when you need money.
- Prices can fall, sometimes sharply, and you can lose money.
- The market can stay down for years.
Open the Markets page on MojoStox to see today’s market: indices, top gainers and top losers.
- The stock market is a marketplace for shares.
- India’s main exchanges are NSE and BSE.
- It matches buyers and sellers and shows live prices.
- You can make money or lose money.
Q1. Name India’s two main stock exchanges.Show answer
NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
Q2. Why is the stock market compared to a vegetable mandi?Show answer
Both bring buyers and sellers together, and the price moves with demand and supply.
Q3. Can you lose money in the stock market?Show answer
Yes. If you sell for less than you paid, you lose money.