Stock Exchanges In India

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Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks and other securities.

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Stock Exchanges In India

  1. 1. Introduction Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks and other securities.The members may act either as agents for their customers, or as principals for their own accounts. National Stock Exchange Bombay Stock Exchange
  2. 2. Definition: The Securities Contracts (Regulation) Act, 1956, has defined Stock Exchange as an “association, organization or Body of Individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business of buying, selling and dealing in securities.”
  3. 3. Important terms in stock market and in stock trading  Open  High  Low  Close  Volume  Bid  Offer Bid Quantity Offer Quantity Buying and selling of stocks Stock Trading Transaction Squaring off Limit Order Market Order
  4. 4. History Of Stock Exchanges in India It all started in 1875, when 318 persons came together to form “Native Shares and Stock Brokers Association” and the membership fee was Re.1.00.This association is now known as the Bombay Stock Exchange (BSE) and in 1965 it was given permanent recognition by the Government of India. National Stock Exchange (NSE) is the second popular stock market of India. Sensex or the 30 stock sensitive index was first compiled in 1986. Nifty is the stock sensitive index for NSE.
  5. 5. Features of Stock Exchange Characteristics or features of stock exchange are:- Providing Liquidity and Marketability to Existing Securities Pricing of Securities Safety of Transaction Contributes to Economic Growth Spreading of Equity Cult Providing Scope for Speculation
  6. 6. Buying and Selling of stocks is called stock trading. Mainly there are two ways of doing stock trading. Online StockTrading Offline StockTrading StockTrading
  7. 7. Day trading and Delivery trading are the two main types of stocks trading. Day trading DeliveryTrading Please Note - First you have to buy and sell.You can’t sell before buying in delivery trading while it’s possible in day trading. Different types of stock trading
  8. 8. Following are the types of orders which are used for buying and selling of stocks. Market Order - When you put buy or sell price at market rate then the price get executes at the current rate of market. Limit Order - It’s totally different to market order. In limit order the buying or selling price has to be mentioned and when the stock price comes to that price then your order will get executed with the mentioned price by you. Stop LossTrigger Price- Stop loss and trigger price are used to reduce the losses. This is very important term especially if you are doing day trading (intraday). Stop Loss as the name indicates this is used to reduce the loss. Methods of buying/selling of stocks
  9. 9. National Stock Exchange Limited It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities.
  10. 10. BombayStockExchangeLimited BSE is the oldest stock exchange in Asia with a rich heritage of over 133 years of existence.What is now popularly known as BSE was established as “The Native Share & Stock Brokers’ Association” in 1875. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation)Act (SCRA), 1956. BSE’s pivotal and pre- eminent role in the development of the Indian capital market is widely recognized.

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