Stock Trading

Stock trading is the process of buying and selling shares of companies listed on public stock exchanges with the objective of generating profit or building long-term wealth. Participants—ranging from short-term traders to long-term investors—engage in these markets to benefit from price movements and company growth. In India, stock trading occurs mainly on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), both operating under the regulation of the Securities and Exchange Board of India (SEBI). Transactions are executed through registered brokers or digital trading platforms using demat and trading accounts that hold and manage securities electronically.

Example: For instance, an investor who buys 100 shares of Infosys Ltd. at ₹1,500 per share on the NSE may later sell them at ₹1,600 each, earning a gain of ₹100 per share from the trade.