Imagine you are going to a new place and what happens – you are completely lost on where to stay, what to eat! and then slowly you understand the places, the roads, the people. Same is with stock market, each country has their own rules and regulations and what market they trade in. Lets start with our first puzzle, what is stock market? Normally I hear from people that they have heard this buzzword and with Harshad Mehta’s series it even got more hyped. Lets start breaking this puzzle piece by piece.
Imagine you are a manufacturer of pencil. Now I come to you and say I want to buy a pencil. What will be your answer to this question – we don’t sell single pencil, if you want to purchase go to the retailer/wholesaler/distributor. Now in the stock market similar things happen you cannot buy shares of the company directly, there is a exchange in between (Distributor) who has all the stocks of the company.