does Inflation affects the Stock Market? What is stock market and stock exchange? “Stock market is a place where people who want to invest their money in stocks come together and perform the buying and selling of such stocks over the stock market.” Trading in stock markets refers to the transfer of securities or stocks between sellers and buyers on an agreed price. The various instruments which can be traded in the stock market are equities, bonds, etc. and the investors could be an individual, large investment companies, banks, pension funds, insurance companies, etc. Trading of these stocks happens in stock exchange with the help of brokers who act as intermediaries between buyers and sellers. NSE and BSE are India’s famous stock exchanges. What is Inflation? Inflation refers to a rise in the prices of goods and services in the economy over a period. It indicates the loss of purchasing power of people in the economy due to expanded price, unchanged ear