How does the stock market work?
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A stock market is a marketplace to buy and sell various financial instruments such as equities, bonds, and derivatives. You can only make transactions in the stock market through brokers. It is crucial to know how stock market works before you begin your investment journey.
The price of a security listed on a stock exchange (BSE or NSE) is decided by its demand and supply in the market. The broker places orders on the stock exchange on your behalf. Further, the stock exchange looks for buyers and sellers at a price pre-defined by you. Once the exchange finds the right match, your order is executed. The security acquired or sold by you is stored in a DEMAT account. It takes t+2 days for the security to reach your DEMAT account.