Basically stock market is a name of bunch of several exchanges in which shares of publicly held companies are bought and sold. Such financial activities are conducted through formal exchanges and via over the counter (OTC) marketplaces that operate under a defined set of regulations.
KEY POINTS
#1. Stock markets are Venues or platform where people meet to buy and sell the equity shares of public corporations.
#2. Stock markets are components of a free-market economy because they enable democratized access to investor trading and exchange of capital.
#3. Stock markets create efficient price discovery and efficient dealing.
#4. The stock and securities market in India is regulated by four fundamental laws:-
a. The Companies Act, 2013
b. The Securities and Exchange Board of India Act, 1992 (SEBI Act)
c. The Securities Contracts (Regulation) Act, 1956 (SCRA)
d. The Depositories Act, 1996.
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Disclaimer: Above content purely for educational purpose, do your own research before taking any position.
Source: Books
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