In India, various sectors are being developed by new entrepreneurs and existing businessman with their new ideas and technologies. The Indian government is also providing many platforms for those businesses who are being developed but many Indians do not aware of many platforms like share market.
Why does the Indian government support Stock market?
Stock market trading is legal in many developed and developing countries. Their government support Stock market to analysis their financial stage comparing with other countries and to balance the fluctuations in their economy.
“The principal aim of this strategy is to maximize diversification, minimize taxes from too frequent trading, and ride the general trend of the stock market”
Many Exchanges are undertaking the controls of the stock market like MCX, NSE, BSE, etc. But the whole securities markets are regulated by the SEBI (Securities and Exchange Board of India). SEBI can take a legal action if any complaint files on Exchanges and brokerage firm.
Profits and Losses are happened often due to some situation for the traders. To overcome the losses in their business, Securities markets were founded.
For example,
A gold jewelry businessman buys a 100 kg of gold in today price and sells a 100 kg of gold in the Commodity market. If the price of the gold becomes lower than he bought, the profit will come from the Commodity market. So, he can able to get profit from online trading when the physical trading gives him losses.
Note:-
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