While the terms “stock market” and “stock exchange” are often used interchangeably, there is a subtle difference between the two
What is a Stock Market?
A stock market refers to the broader concept of a marketplace where buyers and sellers trade stocks (shares of ownership in companies) and other securities. It encompasses all the platforms, systems, and mechanisms that facilitate the buying and selling of financial instruments, including stocks, bonds, options, and commodities
Depending upon the sentiments of the people who participate in investing, these stock markets could also be classified as bullish or bearish markets. Now the question arises, What are bull and bear markets?
Well, Bull markets are those where the buyers are planning or looking to buy shares in expectations of future profits. On the other hand, a bear market is the one where the investors are trying to sell out their holdings as they are expecting a loss in the future.
What is a Stock Exchange?
A stock exchange, on the other hand, is a specific entity or organization that provides a platform for the buying and selling of stocks and other securities. It is a regulated marketplace where listed companies’ stocks are traded. It facilitate the execution of trades, maintain order and transparency, and provide a centralized platform for market participants to interact.
In Indian Stock market the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the primary exchanges where the majority of trading activities in the Indian stock market occur
Asia’s oldest stock exchange, the Bombay Stock Exchange (BSE), and the National Stock Exchange (NSE) are the two main exchanges through which the Indian Stock market functions. While the Bombay Stock Exchange (BSE) has its origins dating back to 1875, the National Stock Exchange (NSE) was established much later in 1992
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