Today, the terms “stock market” and “stock exchange” are frequently used around you; nevertheless, how does the stock market work? Continue reading to find all the answers in this article.
What Is The Stock Market?
The stock market refers to over-the-counter or on-exchange public markets for issuing, purchasing, and selling stocks.
Stocks, also referred to as equities, are fractional ownership shares in a corporation, and in the stock market, investors can buy and sell such investable assets.
A well-functioning stock market is critical to economic progress because it allows enterprises to obtain cash from the general public quickly.
India’s Stock Exchanges
There are 2 major stock exchanges:
- The Bombay Stock Exchange (BSE).
- The National Stock Exchange (NSE).
The Bombay Stock Exchange:
The Bombay Stock Exchange, or BSE, is India’s earliest and largest stock exchange, founded in 1875, the Native Share and Stock Brokers’ Association.
The BSE has aided in the development of India’s capital markets, particularly the retail debt market, and the expansion of the Indian corporate sector.
The BSE is Asia’s first stock exchange, with an equities trading platform for small and medium-sized businesses.
BSE has expanded its offerings to include clearing, settlement, and risk management, among other capital market services.
The National Stock Exchange:
The National Stock Exchange of India is India’s largest stock exchange, serving several cities and towns around the country.
Major financial institutions founded the Nationwide Stock Exchange (NSE) to create a contemporary, completely automated display trading system with national reach.
Exchange listings, settlement services, trading services, indices, market data feeds, technology solutions, and education are part of the NSE’s fully integrated business strategy.
The firm also ensures that trading and clearing members follow the exchange’s rules and regulations.
Stock Market Holidays 2022
| Holidays | Date | Day |
| 1 | Republic Day | January 26, 2022 |
| 2 | Mahashivratri | March 01, 2022 |
| 3 | Holi | March 18, 2022 |
| 4 | Mahavir Jayanti / Dr.Baba Saheb Ambedkar Jayanti | April 14, 2022 |
| 5 | Good friday | April 15, 2022 |
| 6 | Id-Ul-Fitr (Ramzan Id) | May 03, 2022 |
| 7 | Muharram | August 09, 2022 |
| 8 | Independence Day | August 15, 2022 |
| 9 | Ganesh Chaturthi | August 31, 2022 |
| 10 | Dussehra | October 05, 2022 |
| 11 | Diwali * Laxmi Pujan | October 24, 2022 |
| 12 | Diwali Balipratipada | October 26, 2022 |
| 13 | Gurunanak Jayanti | November 08, 2022 |
Are Stock Market Opening Days
The National Stock Exchange is open Monday through Friday and closed on Saturday and Sunday unless special trading sessions are advertised.
On the other hand, the exchange may close the market on days other than the open the market on days that were previously proclaimed holidays.
When it deems it appropriate and essential, the exchange may extend, advance, or reduce trading hours.
Frequently Asked Questions
What are the stock market's typical opening and closing times?
Monday through Friday, the Stock Exchange is open from 9:30 a.m. to 4 p.m. ET. On weekends, the markets are closed.
Can I buy shares on Saturday?
On Friday afternoons, major stock markets close and may provide extended after-hours trading until Friday evening.
On the other hand, Saturday and Sunday are frequently unavailable to most dealers.
What is the three-day rule in stock trading?
The 3 day rule states that investors should wait three days to buy after a significant loss in a stock’s share price, often in the high single digits or more significant percent change.
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