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International Journal of Creative and Open Research in Engineering and Management

A Peer-Reviewed, Open-Access International Journal Supporting Multidisciplinary Research, Digital Publishing Standards, DOI Registration, and Academic Indexing.
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ISSN: 3108-1754 (Online)
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ISO Certification: 9001:2015
Publication Fee: 599/- INR
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License: CC BY 4.0
Peer Review: Double Blind
Volume 02, Issue 7

Published on: July 2026

UNDERSTANDING THE FUNDAMENTALS OF STOCK MARKET: STRUCTURE, FUNCTIONS, AND ROLE IN ECONOMIC GROWTH - A STUDY BASED ON SECONDARY DATA

Dr.R.RANGANATH SRINIVAS B G

INDEPENDENT RESEARCHER

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Plagiarism Passed Peer Reviewed Open Access

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Abstract

The stock market is a vital component of the financial system that facilitates capital formation and wealth creation. It provides a platform for companies to raise long-term funds and offers investment opportunities for individuals and institutions. Despite its growing importance in India, a significant portion of the population still lacks basic awareness of how the stock market functions. This study aims to explain the basics of the stock market, its structure, key participants, and its contribution to economic growth using secondary data sources. Data was collected from National Stock Exchange (NSE), Bombay Stock Exchange (BSE), Securities and Exchange Board of India (SEBI), RBI reports, and published academic literature from 2019 to 2025. The analysis indicates that market capitalization of Indian stock markets crossed USD 4.5 trillion in 2024, making India the 5th largest stock market globally, while the number of demat accounts exceeded 16 crore. However, retail participation remains concentrated in urban areas, with limited financial literacy in rural regions. The paper concludes with suggestions to improve investor awareness and promote safe investing practices.

 

**Keywords:** Stock Market, BSE, NSE, SEBI, Equity, Demat Account, Sensex, Nifty, Financial Literacy, Secondary Data

How to Cite this Paper

R.RANGANATH, & G, S. B. (2026). Understanding the Fundamentals of Stock Market: Structure, Functions, and Role in Economic Growth - A Study Based on Secondary Data. International Journal of Creative and Open Research in Engineering and Management, <i>02</i>(7), 1-9. https://doi.org/10.55041/ijcope.v2i7.252

R.RANGANATH, , and SRINIVAS G. "Understanding the Fundamentals of Stock Market: Structure, Functions, and Role in Economic Growth - A Study Based on Secondary Data." International Journal of Creative and Open Research in Engineering and Management, vol. 02, no. 7, 2026, pp. 1-9. doi:https://doi.org/10.55041/ijcope.v2i7.252.

R.RANGANATH, , and SRINIVAS G. "Understanding the Fundamentals of Stock Market: Structure, Functions, and Role in Economic Growth - A Study Based on Secondary Data." International Journal of Creative and Open Research in Engineering and Management 02, no. 7 (2026): 1-9. https://doi.org/https://doi.org/10.55041/ijcope.v2i7.252.

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References


  1. Securities and Exchange Board of India. (2024). *SEBI Annual Report 2023-24*.

  2. National Stock Exchange of India. (2024). *NSE Monthly Market Pulse Reports*.

  3. Bombay Stock Exchange. (2024). *BSE Annual Report*.

  4. Central Depository Services Ltd. (2024). *Demat Account Statistics*.

  5. Reserve Bank of India. (2024). *Report on Financial Markets and Capital Flows*.

  6. Singh, R., & Kumar, S. (2023). Financial literacy and stock market participation in India. *Journal of Behavioural Finance, 14*(3), 88-102.

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  • All submissions are screened under plagiarism detection.
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  • Peer Review Type: Double-Blind Peer Review
  • Published on: Jul 28 2026
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