What is Stock Exchange?

A place where Stock brokers can buy or sell Shares and Securities and other financial things is called Stock Exchange. In other words we can say where Shares are traded publicly Companies are bought and sold is known as Stock Exchange. The facilities of Stock exchange is transferring of funds between businesses and investors and comes under the Stock market exchange. In simple words to give Best securities to investments. Stock Exchange trading is the inner part of the Stock trading market . Stock market provides facilities to Stock Trading. Stocks are risky but they give a chance to increase the wealth of investors.

Stock Exchange Companies:-

In India there are Two famous Stock exchange companies available. NSE (NIFTY) BSE (SYNTEX) 1) NSE (National Stock Exchange) The NSE is called the National Stock exchange, The most of the trading is done in NSE. 2) BSE (Bombay Stock Exchange) Bombay Stock exchange (BSE) Established in 1992 it is the first asian stock exchange company to buy shares.


If a person buys shares from A Company and now he/she wants to sell it so they will find a buyer so when the buyer gives an amount to the seller so here stock is exchanging. There are Two Ways to Buy Shares:- Primary Method Secondary Method 1) If anyone wants to buy shares directly from the companies so here primary method will be applied. 2) Suppose if a company gives its shares 10 years ago and we have to buy those shares, then we will not be able to buy shares from the direct company. we have to buy them from someone who buys the shares 10 years ago from the same company, then this method comes in Secondary.

How Brokerage Works in Trading

How Brokerage Works in Trading
What is brokerage?

A Broker is a firm who arranges transactions between the parties when the deal is done.

In other words we can say that a fee of commission charged between a transaction by a broker.

But many beginners are in doubt because they don’t have knowledge about fees and more things about brokerage.

Brokerage Works in Trading and There are two type of trading:-

Intraday Trading
Delivery Trading

What is Intraday Trading?
We will understand it by taking an example,,
If a person named “Amit” buys and Sells shares in Same day is called Intraday Trading.

In Intraday brokering charge starts from .1% to .10%


If a person Buys and sells their shares after 2 days, 1 week 2 months or 6 months is called delivery based trading.

In delivery based trading brokering charge starts from .3% to .6%

Note:- The brokering charge will be the same on the buying or selling side.


STT Stands for:- Security Transaction Tax, Before 2004 People weren’t able to declare their profit but after 2004 the government launched STT ( Security transaction tax) when you buy any share.

Intraday STT Is 0.25% and Delivery base is 1%.

In the Market there are Many Brokerage firms providing the best products and services everyday.


There are three types of Brokerage Companies available in the market let’s go and know about brokerages.

Full Service Brokerage
Discount Brokerages
Auto Robot Advisors

1) Full Service Brokerages

A full service brokerage company will give you an advisor which manages all things and takes the right decisions Such as:- Investment, Data, Advises 24 hours contact support and more but this option is Expensive but this is legal and right.

2) Discount brokerages

What is A Discount Broker?

A stock broker which helps you to Carries out many things at the right price.

But the discount broker will not give you any advice regarding investment but sure they will help you to get in touch in emergency situations.

But now in Online platforms companies are taking 0% Commission in trading.

3) Auto Robo Advisors

The auto robo advisors are automatic advisors and give you investment they offer Services with 0% fees and commission and the starting rate is just 5$ – 10$.

Final Words about What is Brokerage?

We suggest that if you want to do trading then it is important to learn about the taxes, commissions and fees Such as:-


Thanks for reading..

Advantages of Stock Exchange:-

Stock exchange market is a good way to gain your profit but this is too risky knowledge is necessary, but before buying shares it is important to know about the turnover of the companies and future plans. If you have the right knowledge about stocks so you're ready to be a millionaire.

Disadvantages of Stock Exchange:-

If a company sells its shares doesn't take any type of guarantee about profit or loss. Share and stock exchange markets can Destroy or make an amazing life of a person so in other words risk is included. With the help of an assistant / Broker you can start stock exchange. So here is the information about Stock exchange also we've covered Pros and Cons of Stocks..

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