The Stock Market is a term which refers to a marketplace where listing of financial securities and transaction takes place.
- Stock market operates electronically these days
- Most transactions happen electronically
- Transaction inside stock market is in auction form
- When ask and bid of buyer and seller matches a transaction completes automatically
Types of financial securities are listed inside stock market
- Stocks or equities
- Derivatives product
- Futures contracts
- Options contracts
- Exchange traded funds ( ETF )
- Commodities contracts
- Currency contracts etc
Purpose of stock market
Main purpose of a stock market is to provide the liquidity for investors and let listed companies raise capital from market participants.
Who can participate in Stock Market
Any one who is above 18 years of age is eligible to participate in stock markets.
Two types of participants
- Financial institutions
- Retail traders
When does stock market open
Every country has different stock exchanges and timing rules. Standard opening time for equity market is morning 09 Am and closing time is 03:30 Pm.
Stock Market sessions
There are 4 types of stock market sessions
Pre markets session
A stock market is opened for a certain period of time before the regular market timings
Post market sessions
Once the regular market hours close,after few minutes there is a post market session for few minutes
After market hours
After market hours is open for placing orders after the regular market hours