What is share trading and how are shares issued?

A share represents ownership in a company and is the smallest unit of ownership a company can offer. A company listed on the Stock Exchange can issue shares to the public.


In the Stock Market (Stock Exchange), buyers and sellers exchange shares. This process is called Share Trading. When a buyer agrees to purchase shares from a seller at an agreed-upon price, the transaction occurs. The general laws of supply and demand govern the prices of shares. When there is more demand than supply, the price of the shares (stock) goes up, and the opposite occurs when there is more supply than demand.


In India, trading 'Shares' are also known as trading 'Cash' and are also referred to as trading Equity. All three terms are synonymous.

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