Get to Know about Stock Market

Stock Market is a meeting place for sellers and buyers of shares, as well as institutions and professions related to stocks, such as stock brokers, securities companies, stock brokers, and so on.

A stock market is a place for buying and selling public shares. The activity of buying and selling shares is through the Stock Exchange. The stock market is also known as the stock market. In the stock market, the Stock Exchange acts as the manager. Investors are the purchasers and securities companies are the sellers.

There are three types of the stock market, among others:

1. Regular market
The regular market is a type of market where stock trading on the stock exchange is carried out based on a continuous auction market bidding process by members of the stock exchange.

The settlement of the transaction is carried out on the 3rd trading day after the exchange transaction occurs (T+3). In the regular market, the shares traded are in units of lots (1 lot = 100 shares).

2. Cash market
The cash market is a type of market where stock trading on the stock exchange is carried out based on a continuous auction bidding process by members of the stock exchange.

However, the settlement of transactions is carried out faster, namely on the same exchange day as the exchange transaction (T+0). the shares traded are in units of lots (1 lot = 100 shares).

3. Negotiated market
The negotiated market is a type of market where stock trading is carried out privately, directly between the seller and the buyer by a process of negotiation or bargaining. So, not through the exchange. However, these transactions are still monitored and the results must be agreed upon by the exchange.

Usually, this is for buying shares in bulk. Therefore, the transaction settlement period can be negotiated.