Indian stock market work?What is a Stock market? A stock market is a place where individuals connect to buy and sell shares of publicly traded companies. To understand how the Indian stock market works, let’s learn more about primary and secondary markets.Primary market Let’s assume Company ABC wants to enter the share market. ABC will have to list their shares in the primary market through an IPO. An IPO is a public offering in which shares of a company are sold to institutional investors and retail investors for the first time and for a particular duration.Secondary Market Once the IPO process is over ABC can now list its company under the stock market so that the stocks are openly available for investors to buy and sell directly.Stock Brokers As there are thousands of people trading, it gets difficult to manage. Therefore, we have stockbrokers and brokerage firms. They act as an intermediary between traders and the stock exchange.Buy and sell orders The stockbrokers now pass the buy order of the trader to the Stock exchange to match it with a sell order for the same. The order is confirmed once both the buyer and seller agree upon a price and finalise it.Settlement cycle Finally, now the stock exchange will confirm the details of the buyer and seller to make sure the transaction has no default. The exchange will transfer the ownership of the shares from the seller to the buyer. The settlement cycle takes T(Transaction day)+2 days to reflect the share trades in the Demat account.Identification & payment The investors are provided with a unique code by their broker. Once the transaction is successful the investors receive a contract note from their broker containing all the details of the stock trade like time and date. Along with this, the investors will also have to pay an additional brokerage fee to the brokers.Winding-up In India, both the primary and secondary markets are regulated by SEBI. With the upgrade in technology, all the processes of trading can be performed online today, seamlessly and effortlessly.