Module 1: Market basics

1. Stocks and exchanges

What it is. A share is a small slice of ownership in a company. In India, shares trade on two main exchanges: the NSE and the BSE. Most stocks are listed on both.

Where to find it. The exchange websites (nseindia.com, bseindia.com) list every company, its filings, and announcements.

How to read it. Each stock has a symbol (for example, RELIANCE). The price you see is simply the latest price at which a buyer and a seller agreed.

Common trap. A low price per share does not mean a cheap company. Price per share alone tells you nothing about value.

Tap or hover a picture to see what it means.

2. Indices

What it is. An index is a basket of stocks used to track the market. Nifty 50 follows 50 large NSE companies. Sensex follows 30 large BSE companies.

How to read it. If Nifty is up 1%, the weighted average of its 50 stocks rose about 1%. Bigger companies carry more weight.

Common trap. The index can rise while many stocks fall, because a few heavyweights can lift it.

An index is a basket of stocks shown as one number. Big companies weigh more.

3. How a trade works

You place an order through a broker. You need a demat account (holds shares electronically) and a trading account. Indian markets use T+1 settlement: shares and money are exchanged one working day after the trade. Regular trading runs from 9:15 AM to 3:30 PM IST on weekdays.

Trading hours and T+1 settlement: shares and money move one working day later.

4. Order types

Market order: buy or sell now at the best available price. Limit order: buy or sell only at your chosen price or better. Limit orders give control over price, but may not fill.

Common trap. A market order on a thinly traded stock can fill at a worse price than expected.

Market order: fast but price not fixed. Limit order: price fixed but may not fill.

5. Who keeps it fair

SEBI is the market regulator. It sets the rules for exchanges, brokers, and companies, and it registers investment advisors. Exchanges also use circuit limits that pause trading in a stock if it moves too far in a day.

Try it live

Find today's change and switch the range to 1Y.

Open the Nifty 50 chart

Practice lab

Do these on the real site. Tick each one when done. 0 of 3 done

Open Markets, choose Nifty 50, range 1M. Is the index higher or lower than a month ago?
Open Markets
In the Markets screener, pick any company and note its sector and market cap. Then search its name on the NSE site and find its trading symbol.
Open screener →NSE site ↗
On the home page, open one Sprout story, tap Explain simply, then Read full story. Which index or company is it about?
Open Live Wire →

Disclaimer: WealthyTrees is for education only. Nothing here is investment advice or a recommendation to buy, sell or hold any share or product. Numbers and examples are made up. WealthyTrees is not a SEBI-registered investment advisor. Please speak to a SEBI-registered advisor before you invest.