It is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.
A stock exchange facilitates stock brokers to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India's premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.
10 golden rules of investing in stock markets
- Avoid the herd mentality
- Take informed decision
- Invest in business you understand
- Don't try to time the market
- Follow a disciplined investment approach
- 6. Do not let emotions cloud your judgment
- 7. Create a broad portfolio
- 8. Have realistic expectations
- 9. Invest only your surplus funds
- 10. Monitor rigorously
