Secondary Market – Stock Exchange & Trading
Once shares are born in the Primary Market, they move to the Secondary Market, where they are bought and sold daily. This allows investors to "cash out" whenever they want.
Market Statistics (India)
Loading stats…
Structure of the Market
Loading comparison…
Market Participants (The Zoo)
The market has colorful names for its players:
- Bulls: Optimists who believe prices will go UP. 🐂 (They toss the market up).
- Bears: Pessimists who believe prices will go DOWN. 🐻 (They swipe the market down).
- Stags: Investors looking only for short-term listing gains.
- Chickens: Fearful investors who panic easily.
Note
Fun Fact: The terms originate from how the animals attack. Bulls thrust horns up, Bears swipe paws down.
How Trading Works
Loading diagram…
Key Concepts
1. Market Indices (The Scoreboard)
Nifty and Sensex act as thermometers.
- If Nifty 50 is Green (+1%), it means the top 50 companies (representing the economy) are generally doing well.
2. Circuit Breakers
To prevent panic crashes, exchanges have brakes.
- If Nifty falls 10% before 1 PM: Trading halts for 45 mins.
- If Nifty falls 20%: Trading halts for the day.
Case Study: The 1992 Scam vs Modern Era
Loading case study…
Summary
- Secondary Market = Liquidity provider.
- Indices: Nifty (50) and Sensex (30).
- Animals: Bulls (Up) vs Bears (Down).
- Technology: Fully electronic, safe, and fast (T+1).
Quiz Time! 🎯
Loading quiz…
Next Chapter: Becoming an Informed Investor! 🕵️