• Market Participants and Regulators

The stock market: what is it? and Market players

• Home -> Market Participants and Regulators -> Understanding the Stock Markets
• Mar 12 2024

The stock market is where all the participants who wish to transact in shares go. Transact means to buy or sell shares in the context of stock markets. The primary purpose of the stock market is to help you facilitate your transactions. So if you want to buy shares of a company, the stock market helps you meet the seller and vice versa.

"A group of markets and exchanges where shares of publicly traded companies are bought and sold."

Using your computer, you can electronically access the market and make transactions (buy or sell). It is also crucial to remember that a stockbroker, who is a registered intermediary, can help you access the stock market. Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are stock exchanges located in India.

Market players :

Market participants or players are those who trade on the stock market. Several categories can be used to categorise market participants or players:

• Domestic Retail Participants

  – These are people like you and me transacting in markets

• NRI’s and OCI

  – These are people of Indian origin but based outside India

• Domestic Institutions

  – These are corporate entities in India

• Domestic Asset Management Companies (AMC)

  – Mutual fund companies like SBI Mutual Fund, HDFC AMC, Edelweiss, ICICI Pru, etc.

• Foreign Institutional Investors

  – Non-Indian corporate entities. These could be foreign asset management companies, hedge funds, and other investors.