In this post we are going to discuss about Indian Stock Market and Indian Stock Exchange like what is stock market and how stock exchange works?
Bombay Stock Exchange [BSE] was founded in the year 1875.
Indian Stock Market
Indian Stock Market is a great perspective in this stock market business of the world, it is among the top 20 stock markets of the world and one of the largest Asian stock markets.
Many peoples in today’s world have some questions about stock market, every one have heard about stock market but majority of peoples doesn’t know that what stock market actually is?
Stock Market is a market where securities are exchanges or you can say purchased and sold from one person to another same like a normal trading business where you trade a normal product from one person to another.
Indian Stock Markets are mainly managed by Securities and Exchange Board of India [SEBI] under which Indian Stock Exchanges are registered, you may have some questions that what is stock exchange?
Indian Stock Exchange
Stock Exchange is an exchange where securities are exchanged in other words trades are executed where buyers and sellers execute their trades. The investors want liquidity for their investments. The securities which they hold should easily be sold when they need cash. Similarly, there are others who want to invest in new securities there should be a place where the securities may be purchases or sold. Stock exchanges provide such a place where securities of different companies can be purchased and sold. Stock exchange is body of persons, weather incorporated or not, formed, with a view to helping, regulating and controlling the business of buying and selling securities.
Stock exchanges are organised and regulated markets for various securities issued by corporate sector and other institutions. The stock exchanges enable free purchase and sale of securities as commodity exchange allow trading in commodities.
In India there are two main stock exchanges named Bombay Stock Exchange [BSE] and National Stock Exchange [NSE] both are located in Mumbai [Bombay].
In 2012 a new stock Exchange was formed which is named as Multi Commodity Exchange Stock Exchange [MCXSX], BSE and NSE are world’s top most stock exchange in terms of capital and stock value traded.