Investing in stock market is necessary to overcome the losses occur through inflation ,where value of money degrades .So, basically stock market is one of the important ways where companies raise their money by offering its companies shares publically to be purchased by investors.
A stock market or a share market are similar with a basic difference that bonds , mutual funds derivatives ,shares of companies are traded in stock market where as only shares are traded in share market.A platform which provide companies to trade stocks, forex, equity and other securities is called stock market.
In stock market ,trading means transfer for money of shares or securities from seller to buyer and share represents the slice of ownership of the investor in that company.
Stock market is divided in two parts :
Primary Market : It is the market where,company very first issue its share and raise money from market by getting registered in stock exchange ,selling of shares for the first time is called Initial Public Offering.
Secondary Market : Once company registered in primary market ,now these shares are traded in secondary market.Here,one investor buys shares from another.
To regulate these markets , a regulatory body of stock market is been established by government of particular company to protect investors from risk.In India,SEBI(Security and Exchange Board of India) regulates the Indian Stock market.