On a fixed day, a company is listed in these exchange. Watch a 35 second clip of listing ceremony of Indigo Airlines.
You can find the name of the company as a ticker on the ticker board where per share price moves up and down based on the buy and sell orders given by the investors/traders.
Using DEMAT account, investors who bought the shares through IPO, if they want, could sell their shares. At this stage, those who have not bought shares through IPO, could buy and sell the shares of the listed company at their will.
Keep in mind that terms like share market, equity market, stock market all are used synonymously. Stock market is a general term which includes share of the listed companies, mutual funds and bonds. Also keep in mind that, terms like share market and equity market are used for both listed and non listed companies.
When someone use these terms, all the processes explained above should come to your mind.
You must know the inside out on how stock market functions, how to identify a good stock, how to identify the right price and how to control your behavior to stay away from unwanted greed and fear.
Investing without knowing all these will be like learning to drive in the middle of a Formula 1 race track that too without wearing the seat belt.
I will be writing more about the basics of equity investment and much more.
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