Module 3 of 6 in Stock market foundations
Exchanges, regulators and your accounts
Who runs the market and who protects you in it. Stock exchanges, SEBI, brokers, demat accounts, IPOs and the Nifty 50 and Sensex.
5 lessons in this module. Progress is saved in your browser as you go.
A share purchase looks like one tap in an app, but several institutions are involved, each with a specific job. This module walks through them in order: the exchange that matches orders, the regulator that writes the rules, the broker you deal with, and the depository that holds your shares. It then explains how new shares reach the market through an IPO, and what the indices on every news ticker actually measure.
By the end of this module you should be able to
- Explain what a stock exchange does and why buyers and sellers trade through one.
- Describe the roles of SEBI, brokers, depositories and demat accounts in a trade.
- Distinguish the primary market from the secondary market and follow where the money goes in each.
- Explain how an IPO works, how individual investors apply, and the risks of buying new listings.
- Explain what the Nifty 50 and Sensex measure, and what an index move does and does not tell you.
Lessons in order
Module test
10 questions, chosen at random from a bank of 40 questions and balanced across this module's learning goals and difficulty levels. Every question comes with an explanation. You need 80% to pass, and you can retake it as often as you like with a fresh set of questions.
This module builds on
- What is the stock market?: You need the big picture of the market before looking at how its central marketplace works.
- Why companies issue shares: The primary market is where companies sell shares to raise money, which that lesson explains.