A market without a building

Watch the market move onto screens.

You know how a vegetable market works: buyers and sellers come to one place and agree on a price. A stock market does the same job for **shares**.

Three things to know

• It's electronic no trading floor to visit — There's no shop to walk into. You reach the market from your phone or computer.
• Stock exchanges NSE and BSE — India's two main exchanges are the **National Stock Exchange (NSE)** and the **BSE** (Bombay Stock Exchange). Their computers match buyers with sellers.
• Stock brokers your way in — You can't connect to an exchange yourself. You place orders through a **registered stock broker**, who sends them to the exchange.

**Remember:** to buy or sell shares of a listed company, you go through a broker to an exchange.

What a trade needs

Tap each market.

The exchange can only match orders that fit together. Try each market.

**Remember:** every trade needs a buyer **and** a seller who agree on a price. Different opinions are what make a market.

Example prices.

Supermarket or stock market?

• Supermarket a building — You walk in, buy groceries, and pay **the shop**.
• Stock market computers — You send an order **through a broker**, buy shares, and pay **another investor** who is selling.

**Remember:** both bring buyers and sellers together. The stock market does it electronically, for shares.

Check — Question 3 of 4

Sort each one.

What you now know

• A stock market brings buyers and sellers of shares together.
• It is electronic: there's no building to visit.
• India's two main exchanges are NSE and BSE.
• You reach the exchange only through a registered stock broker.
• A trade happens only when a buyer and a seller agree on a price.