Hereβs the quick hit:
π The market is a place where buyers and sellers come together to trade assets like stocks, bonds, derivatives, and now even memes (hello GameStop).
π₯ 1. Participants (aka the drama creators)
- Retail investors β You, me, your uncle who thinks every stock is a scam.
- Institutional investors β Mutual funds, pension funds, insurance companies. They move billions like itβs Monopoly money.
- FIIs/FPIs β Foreign investors who enter India like NRIs during weddings and exit faster than your ex.
- Market makers β Entities (often brokers) that provide liquidity. They buy/sell continuously so youβre not stuck waiting for a match.
- High-frequency traders (HFTs) β Algorithms on steroids. They trade thousands of times per second just for micro profits.
π¦ 2. Exchanges (The actual marketplace)