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What is stock market ?

                 Stock market means one platform that execute the buy and sell order of shares or stock of particular company.It mean that stock market is mediator between investor and company.Stock market is also called as equity market, share market ,stock exchange etc.

Why need of stock market ?  How stock market work ?

                              To understand the working of stock market we are taking example,with the help of  example you can easily understand the actual working of the stock market lets see. Suppose ABC Mobile Limited named Indian company having business  of manufacturing mobile phones,company manufacture mobile phones and sell on market regularly after some time company wanted to   manufacture more products to increase their business to whole world for growing company,for the growth of company must need to produce more product and sell more that product to earn more money.In the beginning of this process to manufacture product company basically need money.Now company owners or partners have Bank loan option, that they can go to the bank and take loan from bank with interest rate or company owner has second option that make one or more  partner  in business and take money from them and give them partnership in the company business.After partnership company partner are bounded to any loss or profit in an equal, Similarly if company ABC  Mobile Limited need more fund to more growth they can share partnership and make partner in the business.For making more fund company need more partner then better choice to the company has to list his company on stock market exchange  and give some partnership to the investor like 30 percent ,40 percent etc.Then investor can easily buy the ABC Mobile Limited company shares and company easily rise fund through investor by giving ownership in the form of shares.

               Stock exchange execute the the orders of such investors buy and sell order.Worlds 1st stock exchange started in 1611,In Asia first stock exchange established in  1875 in India at Mumbai Named as Bombay stock exchange, Now Indian stock market is worlds 7th biggest stock market by market capital.      


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