Frequently Asked Questions

4

What is Share Market?

The share market is a place where people buy and sell shares of listed companies. In India, it works through exchanges like NSE and BSE. Share prices keep changing based on demand, supply, and how the company is performing.

What is Share Market?

The share market is a place where people buy and sell shares of listed companies. In India, it works through exchanges like NSE and BSE. Share prices keep changing based on demand, supply, and how the company is performing.

What are the different types of Market Segments?

• The shares or securities of listed companies are traded through the equity market, primarily through the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
• Commodities such as gold, crude oil, and silver are traded through the commodities market, primarily through the Multi Commodity Exchange (MCX) and the National Commodities & Derivatives Exchange (NCDEX).
• For forex trade, like USD-INR and GBP-INR, we have the currency market.

How does the share market work?

Here’s an oversimplified version of how the (equity) stock market works:

A company looking to raise capital issues its shares to the public through an Initial Public Offering (IPO), upon which the company is listed on the stock exchanges. The shares are then bought and sold by investors, with the demand and supply dynamics determining the stock prices. High demand for a particular stock can push its price upwards and vice versa. Investors generally expect the value of their investment to increase and stay put in the market for longer durations. Traders, on the other hand, are looking to benefit from short-term price fluctuations in the market.

Why invest in the Share Market?

Investors who invest in the market are aiming to grow their wealth through capital appreciation on their investment along with additional gains through dividends. Traders, on the other hand, buy and sell stocks in quicker intervals, attempting to benefit from price fluctuations in the stock market. For instance, a trader can buy stocks worth Rs. 30,000 in March, and say the value of that investment rises to Rs. 34,000 by May. In this situation, the trader could decide to sell their stocks for a profit of Rs. 4,000.

Which are the primary stock exchanges in the Indian share market?

The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) and the two primary stock exchanges in the equity market.

Where can I see share market prices?

It’s very simple to view the share market prices on ICICI Direct platforms such as the ICICI Direct App and the ICICI Direct website. Just log in and search for the stock name in the search bar. Alternatively, one can also use popular search engines to check share prices.

What are the timings for the share market?

The equity share market in India opens for trading at 9:15 AM in the morning, and closes at 3:30 PM in the afternoon for a regular trading session.

What kind of accounts do you need to trade stocks?

In addition to a bank account, one also needs a Demat account and a trading account. The Demat account is required to store shares, while the trading account is required to execute trades through your stock broker.

Where can I see the share market live charts?

One can view the live share market charts on ICICI Direct platforms such as the ICICI Direct App and the ICICI Direct website. Once logged in to either platform, just search for a stock name and click on the chart button.

What are dividends in stock market?

Dividends are a part of a company’s profits that are distributed to shareholders, often in the form of cash. One should know that not all companies offer dividends. Investors looking to invest in stocks for dividend payouts should research about dividend paying stocks.