Difference Between the Stock market and the Share market
clear explanations, examples, tables, and visuals
| Aspect | Stock Market | Share Market |
|---|---|---|
| Definition | A broad term encompassing all markets where securities (stocks, bonds, derivatives) are traded. | A subset of the stock market where shares (equity) of companies are bought and sold. |
| Scope | Includes shares, bonds, debentures, ETFs, derivatives, etc. | Deals specifically with company shares. |
| Focus | Entire market for all securities. | Only focuses on ownership (shares) in companies. |
| Participants | Retail and institutional investors, traders, market makers, etc. | Retail and institutional investors, traders. |
| Instruments | Stocks, bonds, mutual funds, derivatives, ETFs, commodities. | Shares (equity) of companies. |
| Example | New York Stock Exchange (NYSE) includes stocks, bonds, and other securities. | When you buy shares of Apple Inc. (AAPL). |
| Visualization | 📊 Whole Market | 📈 A part of the market (shares) |
Explanation :
The stock market includes everything: shares, bonds, and derivatives.
The share market is a segment of the stock market, focusing on shares of companies.
📚 Classic Example
🔸 Imagine the stock market like a supermarket.
-
You can buy vegetables (stocks), rice (bonds), spices (derivatives), and packaged foods (mutual funds).
🔸 Now, the share market is like a vegetable section in that supermarket.
-
You’re only buying vegetables (shares).
📈 Another Table with Examples
| Example | Stock Market | Share Market |
|---|---|---|
| National Stock Exchange (NSE), India | Includes shares, bonds, derivatives. | Share market is part of it, dealing with company shares. |
| Buying Tesla Bonds | Stock market transaction (bonds). | Not in the share market. |
| Buying 100 shares of Reliance | Both stock market and share market. | Specifically in the share market. |
| Trading derivatives (options, futures) | Stock market transaction. | Not in the share market. |
Stock Market = Large circle with everything (stocks, bonds, derivatives).
Share Market = Smaller circle inside (only shares).
📝 Key Takeaways
✅ Stock Market is everything (shares + bonds + derivatives).
✅ Share Market is only about shares (ownership in companies).
✅ All share market activity is part of the stock market, but not all stock market activity is part of the share market.
✅ Example: Buying Apple shares → share market; buying Apple bonds → stock market (but not share market).
0 Comments