How The Stock Market Works?

•  When Company sells its shares for the first time to the public than it is called IPO (Initial Public Offering). It is the process through which a private company becomes a public company. In this buyers can buy shares directly from company but to sell the shares they have to wait until the company gets listed on Stock Exchange.
•  For listing in stock exchange company needs to full-fill all the listing criteria of stock exchanges like minimum numbers of shares outstanding, minimum market capitalization, minimum income etc.
• After the stock gets listed on stock exchange and shares issued by company can be traded on stock exchange.
•  Now the question comes that Who Regulates the Stock Market?  SEBI (Securities and Exchange Board of India).
• SEBI has all the power to make rules and regulations of stock market. SEBI approves the license to Broker and Dealers  Also its. Responsibility of SEBI to protect rights of investors and brokers.

How Price of Shares Decide?

• The Opening price of share is decided by company itself the day an IPO releases.
•  After the completion of IPO share prices depends on Demand and Supply.
• If the buyers of share are more than sellers than price of shares increases.
• If the things goes opposite means sellers are more but buyers are less than price of shares decreases.