Difference between Stock Market and Stock Exchange - Explained (2024)

Exploring the Stock Market

The stock market serves as a broad platform where the buying, selling, and issuance of securities such as stocks, bonds, and other financial assets take place. These securities are typically issued by publicly traded companies and can be purchased or sold by investors, who can be individuals or institutions. The stock market plays a pivotal role in determining the price of shares and acts as an indicator of a country's overall economic health. The large number of participants in the stock market ensures a competitive environment, leading to fair pricing.

The operation of the stock market is monitored by a regulating authority, which ensures the legality and transparency of transactions. In India, this authority is the Securities and Exchange Board of India (SEBI). The stock market not only brings together various market players on a single platform but also ensures fair trading practices. Today, the stock markets have shifted from paper-based share certificates to digital forms.

Difference between Stock Market and Stock Exchange - Explained (2024)
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