Introduction to stock exchange
A stock exchange is a marketplace where publicly traded companies list and trade their stocks. It is a platform where buyers and sellers come together to trade shares of companies that are publicly listed.
In a stock exchange, companies can raise capital by issuing shares to the public. These shares can then be bought and sold by investors on the exchange. The prices of these shares are determined by supply and demand, as well as other factors such as company performance, economic conditions, and investor sentiment.
Investors can participate in the stock exchange through a broker or an online trading platform. It’s important to note that investing in the stock market involves risk, and investors should do their due diligence before investing their money.
The stock exchange in India is called the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). Both of these exchanges are located in Mumbai, the financial capital of India.India’s stock exchanges have grown significantly in recent years, with more and more investors participating in the market. The government of India has also introduced various measures to promote investments in the stock market and encourage the growth of the Indian economy.
• National Stock Exchange (NSE): The NSE was established in 1992 and is headquartered in Mumbai, India. It is a fully automated electronic trading platform that provides a modern, transparent, and efficient trading system. The NSE has over 2,000 companies listed on its platform, and it accounts for over 80% of the equity trading volume in India.
• Bombay Stock Exchange (BSE): The BSE is the oldest stock exchange in Asia and was established in 1875. It is headquartered in Mumbai, India and has over 5,500 companies listed on its platform. The BSE is the first exchange in India to obtain permanent recognition from the government of India under the Securities Contract Regulation Act, 1956.
• Securities and Exchange Board of India (SEBI): The SEBI is the regulatory body that oversees the functioning of the Indian stock exchanges. It was established in 1992 and is headquartered in Mumbai, India. The SEBI regulates and monitors the functioning of the stock exchanges, brokers, and other participants in the Indian capital markets.
• Trading hours: The trading hours for the Indian stock exchanges are from 9:15 am to 3:30 pm on weekdays. However, the exchanges are closed on weekends and public holidays.
• Market indices: The Indian stock exchanges have several market indices that provide information on the performance of the stock market. Some of the popular indices are the Nifty 50, BSE Sensex, Nifty Bank, and Nifty IT.
• Trading participants: The Indian stock exchanges have various participants, including brokers, traders, investors, and market makers. These participants play a crucial role in the functioning of the stock market and help in providing liquidity and efficient price discovery.
