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How does the stock market work in India?

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Stock Exchanges: The two primary stock exchanges in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Companies list their shares on these exchanges, and investors can buy or sell shares through these platforms 

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Securities and Exchange Board of India (SEBI): SEBI is the regulatory authority overseeing the stock markets in India. It ensures transparency, protects investors' interests, and regulates the functioning of the stock exchanges 

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Primary Market: In the primary market, companies issue new shares to the public through Initial Public Offerings (IPOs). Investors can subscribe to these IPOs to buy shares directly from the company 

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Trading Mechanism: Stock trading in India is electronic, facilitated by online platforms provided by brokers. Investors place orders to buy or sell shares, and these orders are matched electronically on the exchange 

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Demat Account: To trade in the stock market, investors must open a Demat account. This account holds shares in electronic form, eliminating the need for physical certificates 

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Indices: The performance of the stock market is often gauged through indices like the Sensex (BSE) and Nifty (NSE). These indices represent a basket of top companies and reflect the overall market trend 

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Market Participants: The stock market comprises various participants, including retail investors, institutional investors, mutual funds, foreign institutional investors (FIIs), and domestic institutional investors (DIIs)

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Investment Strategies: Investors in the stock market can adopt various strategies such as long-term investing, day trading, or swing trading. Each strategy involves different levels of risk and reward based on the investor’s goals and risk tolerance