In simple Words, a “share or stock” isa document issued by a company,which entitles its holder to be one ofthe owners of the company.A share is issued by a company or canbe purchased from the stock market
STOCK MARKET• A stock market, sometimes referred to as a stock exchange, is a place where stockbrokers buy and sell stocks and other securities on behalf of investors, corporates and other entities
# Bombay Stock Exchange is the oldest stockexchange in Asia.# BSE was established as "The Native Share& Stock Brokers Association" in 1875# Today BSE is the world’s no. 1 exchange interms of the number of listed companies andthe world’s 5th in transaction numbers
> The National Stock Exchange of India Limitedis a Mumbai-based stock exchange. It is thelargest stock exchange in India in terms of dailyturnover and number of trades.> It is mutually owned by a set of leading financialinstitutions, banks, insurance companies andother financial intermediaries in India.> NSE is the third largest stock exchange in theworld.
SECURITIES AND EXCHANGEBOARD OF INDIA (SEBI)The Securities andExchange Board of India wasestablished on April 12, 1992in accordance with theprovisions of the Securitiesand Exchange Board of IndiaAct, 1992.
PREAMBLE:The preamble of SEBI describes itsbasic functions as “…..to protect theinterests of investors in securities and topromote the development of, and toregulate the securities market and formatters connected therewith orincidental thereto”
STOCK MARKET INDEX• A stock market index is a method of measuring a section of the stock market.• An index has a numerical value• When an ‘index’ goes up or down, it reflects an increase or decrease, respectively, in the total value of those stocks
BSE SENSEX• BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks that started on January 1, 1986.• The Sensex is regarded as the pulse of the domestic stock markets.