What is stock market?
A stock market is place where exchange of equity/ stock/ shares take place of a listed company. Stock can be defined as a portion of ownership in a company .
Uses of stock market
A company can list itself in the market By issuing shares to general public and utilise the raised fund for day to day operations. It helps existing investors to sell there shares and helps fresh investors to enter in the market. It contributes to the economic growth of a nation my proper channelising funds towards most productive investments.
Stock Exchange
There are many stock exchanges in the world.
In USA there is NEW YORK STOCK EXCHANGE( NYSE)
In JAPAN its TOKYO STOCK EXCHANGE (TSE)
But here we will discuss mainly on the Indian stock exchange
THE BOMBAY STOCK EXCHANGE ( BSE) and
THE NATIONAL STOCK EXCHANGE (NSE)
BSE or Bombay stock exchange
Bse was formed in 1875 and was Asia first stock exchange. It was granted a permanent recognition under security regulation act 1956.
Objectives of bse is to provide an efficient and transparent market for trading in shares, debt, instruments, derivatives and mutual funds. to provide trading platform to small and medium size enterprises.
NSE or National Stock Exchange of India
The National Stock Exchange is the latest and has modern technology driven exchange. It was started in 1992 and started operation in 1994. NSE has fully automated screen based trading system. The NSE was set up by leading financial institutions, banks, insurance companies. It is managed by the professionals who do not directly or indirectly trade on the exchange.
Stock Market Index
SENSEX is the index of Bombay stock exchange .
NIFTY is the index of National Stock Exchange.
There are global stock indices also : Dow jones is amongst the oldest quoted index in the US .
NASDAQ Composite Index .
S and P 500 is made up of 500 biggest publicly traded companies in US.
