Chapter 1 of 5

How Markets Actually Work

Self-paced Updated 5 Aug 2026Free Preview

Simplified Explanation

Keep your textbook open alongside — this explains the same topic in simpler terms.

Think of the stock market as a big vegetable market. Instead of tomatoes, companies sell tiny ownership pieces of themselves — called shares.

NSE and BSE are the two big markets in India. To buy shares you need a demat account (a locker for shares) and a trading account (the wallet that pays).

Buyer + Seller agree on a price → trade happens
Nifty 50 / Sensex = scoreboards of the biggest companies
Prices move because of demand and supply, nothing else

Self-Test

3 questions · instant feedback

1. What does a share represent?

2. Which two are India's main stock exchanges?

3. What moves share prices?

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