What is share market?
Share Market
is a collection of markets which is a buying and selling house of shares which
helps the company to raise the capital easier from banks, mutual funds etc. Share
Market is the reflection of the overall performance of the corporates.
Basically it is an upbeat mood. Predictions have been made by the Economists
that the economy will be growing around 10% in the near future. Share market
allows a company to achieve greater scale in its operations and to improve its
profitability.
In simple words. A Share
Market is a place where many companies have been listed and shares are
available to Buy and Sell. One who holds the share of the company is known as a
Shareholder. If in case the shareholder is not interested to hold the shares of
the company he can sell those shares in the Share Market. Basically market is a
place where we buyer buys and seller sells the goods; similarly stock exchange
is a place where stock transactions are being exchanged within two individuals.
Share Market started working
from 1875. Share Market mainly consists of two most important stock exchanges
in India.
- Bombay Stock Exchange (BSE)
- National Stock Exchange (NSE)
Bombay stock exchange
is the oldest stock exchange in Asia. It is
the largest stock exchange with over 6,000 stocks listed. It is located in
Mumbai. BSE started functioning with the name called- Native Share & Stock
Broker’s Association. BSE is spreaded all over India. BSE made trade Efficient,
transparent and time saving too. Index of Bombay stock exchange is SENSEX. BSE
comprises of 30 companies. By using “Free Float Market Capitalization”
methodology index calculation is being done.
To facilitate smooth
transactions and to empower investors, various services are offered by BSE.
- BSE training Institutes.
- BSE online trading Facility.
- Investor Services.
National Stock Exchange is the largest stock exchange in India. It is
responsible for vast majority of share transaction. NSE is the first exchange
in the world to use satellite Communication for trading. There is a
certification programme being conducted by NSE. The programme is named as
‘NCFM’ i.e. NSE’s Certification in Financial Markets. It is mandatory for NSE
to meet International Standards. Its main objective is to establish nationwide
trading facility for all types of securities. NSE provides the flexibility of
providing maximum Security to investors.
In today’s time trading
shares is one of the most fruitful or we can say is a worthwhile method of
making money.
There are some reasons why
to invest in Stock Market:
- It is quite easy to learn how to profit from the Stock Market.
- Minimal time is required in trading.
- Quick Liquidation.
- You do not need a huge amount of money to start with making money or trading.
Before investing in the Share
Market it is recommended to be clear about the ‘Basics of Share Market’. Basics
include to be clear about each and every aspect of Investments, share trading,
share options, Company, Shares, Debentures, Mutual Funds, Share Trading etc.
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