This is very interesting question "what is Stock Market?" Here need to understand about the stock market. So we are representing some important basic statements of Stock Market.
A stock exchange is a public foundation or a network of economic transactions, entity of the company's shares trading and derivatives at an agreed price, the publicly traded as well as those that are privately negotiated. Stock Market in India is very fragile, and depends mainly on foreign markets and FII buying or selling. This generates a monopoly such a situation, which leaves less for actor analysis and decide on its trading position.
Participants or traders of the Stock Market range from small individual stock investors to the large players in hedge funds based anywhere. Their orders usually end up with a professional exchange, which plays the important role in executes the order.
Some stock exchanges are physical locations which consists transactions on a trading floor, via the method known as open outcry. This kind of auction is used in the stock markets and commodities, where traders may enter "verbally" bids at the same time. The other is a virtual kind, composed of a computer network where transactions are made electronically via traders.
FUNCTIONS OF STOCK MARKET
ü Created to help regulate and control the business of buying, selling and trading securities.
ü Provides a market for trading to organizations seeking for investing their savings and surpluses by buying securities.
ü Provides a physical platform for selling and buying securities that were traded on this exchange.
ü Establishes the rules of fair business practices and regulate the commercial activities of its members under these rules
ü Exchange is not responsible to buy or sell securities, nor set the prices.
NATURE OF STOCK MARKET
As we know that, stock market is too much volatile, its vary according to time, situation and other related things. We know from experience that investors can "temporarily" a rise in financial prices away from their overall long-term price of "progress." (Or even positive trends are called a bull market, negative or downward trends are called to respond to the market.) Over-reactions, so that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may lead excessively low prices. Economists continue to debate the financial markets have normally effective.