What is stock market?
In a literal sense, the stock market is a place to buy and sell a stake in a listed company.
Share means part. Market is the place where you can buy and sell.
In a literal sense, the stock market is a place to buy and sell a stake in a listed company. There are two major stock markets in India called Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
In BSE or NSE, shares of a listed company are bought and sold through a broker. However, bonds, mutual funds and derivatives are also traded in the stock market.
Domestic as well as foreign investors (FII or FPI) also invest a lot in the stock market or stock market with the hope of large returns.
What does it mean to buy shares?
Suppose a company listed in the NSE has issued a total of 10 lakh shares. According to the proposal of that company, the number of shares that you buy, you own that share in that company. You can sell your share shares to any other buyer whenever you want.
The number of shares to be given to a person or group at the time the company issues shares is up to its discretion.