Learn what is share market, how it works, its types, market timings, advantages, and disadvantages. A complete beginner’s guide to share market in India for 2025.
In today’s financial world, understanding the share market is essential for anyone who wishes to grow wealth or learn about investments. Through this article, we’ll explore what is the share market, how it works, its types, how to buy and sell shares, market timings, and the advantages and disadvantages of investing in it.
The share market is a platform where companies sell their shares, and investors buy them. When you purchase a company’s share, you become a shareholder of that company — meaning you own a small part of that business.
📈 What is Share Market?
The share market (or stock market) is a place where buying and selling of company shares take place. If you invest at a young age, you can learn about market behavior, develop patience, and earn significant profits in the long run. When you buy a company’s share, you are essentially investing in that company. As the company grows and performs well, the value of your shares increases. You can then sell these shares at a higher price to earn a profit.
But why do companies sell their shares? Companies need funds for expansion, development, or new projects. To raise this capital, they issue shares to the public through a process called IPO (Initial Public Offering).
🧾 Types of Share Market in India.
There are two main types of share markets in India:
1. Primary Market
The Primary Market is where a company offers its shares to the public for the first time. When a company launches an IPO, it lists its shares on the stock exchange. This is why the primary market is also called the New Issue Market. Once the shares are sold in the primary market, investors can trade (buy/sell) those shares in the Secondary Market.
2. Secondary Market
The Secondary Market is where already-issued shares are traded among investors. In this market, investors and traders buy and sell shares with one another at the current market price. All transactions in the secondary market happen through registered stockbrokers, who act as intermediaries between buyers and sellers.
⚙️ How Does the Share Market Work?
The share market in India operates under the supervision of SEBI (Securities and Exchange Board of India), which was established in 1992. SEBI ensures that the market operates in a transparent, fair, and regulated manner to protect investors’ interests.
There are two major stock exchanges in India:
📍 1. Bombay Stock Exchange (BSE)
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Founded in 1875, making it the oldest stock exchange in Asia.
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Also known as Dalal Street.
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Over 5000 companies are listed on BSE.
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It is one of the most reputed and secure stock exchanges in India.
📍 2. National Stock Exchange (NSE)
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Established in 1992.
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Over 2000 companies are listed on NSE.
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Known for its advanced technology, reliability, and transparency.
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National Stock Exchange (NSE) introduced electronic trading in India for the first time.
💹 How Are Shares Bought and Sold?
The process of buying and selling shares in the stock market happens through bidding.
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The price at which a seller is willing to sell his shares is called the Bid Price.
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The price at which a buyer is ready to buy shares is called the Ask Price.
When both prices match, a trade takes place. This process ensures that shares are exchanged between buyers and sellers at the best possible market rate.
🧾 How to Buy Shares in the Share Market?
To buy shares in the Indian share market, you need three basic things:
1. Bank Account
You must have a savings bank account to transfer money for buying shares.
2. Demat Account
A Demat Account is used to store your shares electronically. When you buy a company’s shares, they are deposited directly into your Demat account.
3. Trading Account
A Trading Account allows you to place buy and sell orders in the stock market. You can open a trading account through brokers like Zerodha, Groww, Upstox, or Dhan.
🕘 Share Market Timings in India.
In India, trading takes place only on weekdays — Monday to Friday. The stock market remains closed on weekends and public holidays.
📅 Stock Market Timings
| Session | Time | Description |
|---|---|---|
| Pre-Opening Session | 9:00 AM – 9:15 AM | Investors can place, modify, or cancel orders. |
| Normal Trading Session | 9:15 AM – 3:30 PM | Regular buying and selling of shares take place. |
| Closing Session | 3:30 PM – 3:40 PM | Calculation of closing prices of shares, Nifty, and Sensex. |
| Post-Closing Session | 3:40 PM – 4:00 PM | New orders can be placed if buyers and sellers are available. |
The NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) both follow the same timings.
📊 Advantages of Share Market Investment.
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High Returns Potential:
Investing in the share market can offer higher returns compared to traditional options like fixed deposits or gold. -
Ownership and Growth:
By buying shares, you become a part-owner of the company and can benefit from its success. -
Liquidity:
Shares can be easily bought or sold in the market, making them a highly liquid investment. -
Regulated by SEBI:
The share market is regulated by SEBI, ensuring transparency and investor protection. -
Dividend Income:
Many companies distribute a portion of their profits as dividends, providing investors with regular income.
⚠️ Disadvantages of Share Market Investment.
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Market Risk:
The stock market is volatile. Any positive or negative news can directly impact share prices. -
Brokerage Fees:
You must pay brokerage or commission fees to brokers when buying or selling shares. -
Capital Gains Tax:
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Short-Term Capital Gains (STCG): 20%
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Long-Term Capital Gains (LTCG): 12.5%
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Knowledge Requirement:
Investing without proper knowledge or research can lead to losses.
Disclaimer: The information written in this article is for educational purposes only. If you want to invest in the stock market, you should learn about the stock market yourself or take advice from a financial advisor and certified expert. The stock market is subject to risk. Before making any investment, you must take expert advice.
🔚 Conclusion
In this blog, we have discussed what is share market, how it works, its types, timings, and the pros and cons of investing in it. If you understand the market well and invest wisely, the share market can become a powerful tool for financial freedom and wealth creation. We hope this article helps you understand the basics of the stock market. If you found it useful, don’t forget to like, share, and comment below!
👉 Read Also: What is Fundamental Analysis? | Complete Guide to Stock Market Investing (2025).
FAQ
1. Which is the best book to learn share market?
The best book to learn investing in share market is “The Intelligent Investor”. This book is written by “Benjamin Graham”. The best book to learn trading in share market is “Trading in The Zone”. This book is written by “Mark Douglas”.
2. Which is the number one share market in India?
In India, most trading takes place on the NSE (National Stock Exchange), but trading is also done by BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
3. What is the best trading to earn money in share market?
If you want to earn money every day in share market then intraday trading is best for you, and if you want to earn money for long term then investing is best for you.
4. How much money should one start trading in share market?
You can start trading in the share market with Rs 100, there is no such fixed price. If you are new to the share market, then start with minimum money.
5. Can you become rich in share market?
You can become absolutely rich in the share market, but you will have to invest in the share market for a long time. And there are ups and downs in the market, at that time you do not have to withdraw your investment from the market, only then you can earn good money in the share market.