The stock market works through a group of intermediaries. They help in various processes like engaging traders, opening account, advising people, money settlement, maintaining share/stocks in accounts and dividend distribution.
The main market Intermediaries are:
- Banks
- Stock Brokers
- Depositories
- Custodians
Then we have market participants who participates in trading or investing over the stock exchange:
- FII and DII
- Promoters
- Retail Investors
The actual trading mechanism in the stock market
There are millions of retail investors trading everyday on stock exchange. They simply open a trading and DMAT account through a stock broker and connected to their trading platform. The stock broker then is connected to the server of the stock exchange. This brings all the traders on one server. The server of exchange- Now, the trader can buy or sell online.
Read More:
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- How the Stock Market Works.
- How to make money in the stock market
- Share market in India
- Learn Stock market Trading
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