A stock market is a place or a platform where many people come together to do business activities. What it means is that various buying and selling activities take place in these kinds of markets & transactions. The shares of publicly held companies are listed in the stock markets. These types of financial activities happen through OTC. https://iranbourse.net/forex-login-guide/ OTC is also known as Over the Counter and these counters function through traditional formal exchanges. These exchanges operate under a predefined set of instructions.
There are multiple regions in a country where the transactions of stock and other trading values take place and they are known as Stock trading Venues. To understand this better,Choosing the right Stock Broker in Stock Markets Articles it can also be said as a marketplace where many buyers and sellers meet and transact with each other. Since the number of participants in these markets is enormous, therefore an individual has assured fair price for the stocks and shares in which they are dealing. The stock market acts as two mediums namely, primary and secondary markets which are operated in a predefined rule stated by the concerned regulators.
In primary markets, the stock market platform allows a various range of companies to issue, and sell their shares for the 1st time to the ordinary people. This happens through a simplified process known as IPO or Initial Public Offerings. The concerned companies divide itself into multiple numbers of shares and then sell a part of those shares through IPO. This process also helps the companies to raise investments from investors. Each share is sold at a special rate to the public. After the shares are issued for the first time through the process of IPO, the stock exchange facilitates the regular selling and buying of those listed shares through the trading platform known as the Secondary market. This is how stock markets function and trading is done.
What is a Stock Broker?
A stockbroker is a person who executes the process of buying and selling orders for stock on behalf of the client. They are professional in their work and are registered representatives. They are also known as Investment Advisor. The stockbrokers receive a commission for their trading services and they are usually associated with some brokerage firms. They handle all the transactions for retails and the institutional customers in the same manner. However, the commissions vary depending on where they are employed.
To have the ability to buy & sell shares and securities of various companies, the broker must have access to the significant stock exchanges in the country. Trading on these kinds of exchanges requires exclusive memberships or the broker should belong to an authentic member firm. In India, all the share brokers present in the country are governed and controlled by SEBI, also known as Securities and Exchange Boards of India. These fall under the SEBI act 1992. All the stock and share brokers are required to register themselves with the Securities and Exchange Board of India to trade in the stock exchanges. The National Stock Exchange of India and The Bombay Stock Exchange are the two popular stock exchanges in the country which offer certification courses to the brokers.