StoxBox

  Corporate entities collaborate to ensure transactions in the market are smooth. From logging into a trading terminal to having shares credited to your DEMAT account, the collaborative effort of market intermediaries guarantees a flawless transaction. These entities remain out of sight, yet in compliance with SEBI regulations. They ensure a streamlined experience when trading on the share market. They are called Financial Intermediaries or Market Intermediaries. These interdependent financial intermediaries create a system in which financial markets can operate. We will now examine some of the major players in this ecosystem and their respective roles. The Stock Broker  The stockbroker is an important figure in the financial world. They are responsible for providing advice and buying and selling stocks on behalf of their clients. They analyse investments, make financial recommendations and provide counsel to investors. A stockbroker is a crucial financial intermediary. They a...

  Investing in equities is necessary to gain returns that outperform inflation. Therefore, it is important to understand the workings of the share market and all of its associated parts. Just like how we go to local stores or supermarkets to purchase our items, we can go to the share market to make investments. Transactions in stocks involve buying or selling shares. The primary goal of the share market is to enable this process by connecting buyers and sellers. Unlike a supermarket, the share market is not a physical place; it exists in electronic form. Transactions can be made there – buying or selling stocks – and to carry out such dealings you will need to enlist the services of a registered intermediary known as a stockbroker, which we’ll look at later on. India has two main stock exchanges – the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Other exchanges that existed at an earlier time are no longer functional. Thus, when discussing the Indian share ma...