How Does the Stock Market Work? (Explained Simply) Most people hear about the stock market every day — in the news, in conversations, and even in movies. But what exactly is the stock market, and how does it work? In this post, we’ll break it down step by step with real-life examples so even beginners can understand. 1. What is the Stock Market? The stock market is a platform where buyers and sellers trade shares of companies . Companies list their shares for people to buy. Investors (like you and me) purchase those shares. The price of shares changes based on demand and supply . ๐ Think of it like a vegetable market: Sellers = Companies offering shares Buyers = Investors Prices go up if many people want the same stock (like tomatoes in high demand) and go down if people lose interest. 2. Why Do Companies Offer Shares? Companies need money to grow — for new projects, expansion, or paying off debt. Instead of borrowing from banks, they raise money from th...
What is Sensex and Nifty? (The Basics of Indian Stock Market Indices). If you follow stock market news, you’ve probably heard terms like “Sensex is up 500 points today” or “Nifty closed in the red” . But what exactly do these terms mean? ๐ค Let’s break it down in simple words. 1. What is a Stock Market Index? A stock market index is like a report card of the stock market. It measures the performance of a group of selected companies. Helps investors understand whether the market is moving up (bullish) or down (bearish) . ๐ Think of it as a thermometer ๐งพ that shows the overall health of the market. 2. What is Sensex? Full Form: Sensitive Index. Launched: 1986 by the Bombay Stock Exchange (BSE) . What it Tracks: The top 30 companies listed on the BSE, chosen based on market size, liquidity, and industry representation. ๐ Example: Companies like Reliance Industries, TCS, HDFC Bank, Infosys are part of the Sensex. ๐ If the Sensex goes up, it means th...
Comments