THE INDIAN SHARE MARKET 
Share market of India and trading tips 
2010-06-26
The Indian Share Market started its operations in the year 1875. At present, the Indian Share Market now consists essentially of two major stock exchanges which deal with the bulk of the country%u2019s trading:
  • Bombay Stock Exchange
  • National Stock Exchange
 
BSE (Bombay Stock Exchange)
The Bombay Share Market is one of the oldest in the world and in Asia too. The BSE of the Indian stock market  is present in 417 towns and cities all across India and it deals with the following trade options
  • Equity or shares
  • Debt instruments
  • Derivatives (Options and Futures)
The BSE SENSEX is the main index of the BSE. The %u201CFree Float Market Capitalization%u201D method is the main method that is used to calculate the index at the Bombay stock exchange. AT present over the last few years, nearly every significant growth in industry and of the Indian Economy has been reflected in the booming trade of the BSE.
 
NSE (National Stock Exchange)
The NSE is considered the leading stock exchange in the Indian Share Market in terms of the total volume traded. The NSE of the Indian Share Market is present in 1500 towns and cities and the following products are traded in the NSE
§         Futures (stock and index)
§         Equity or Share
§         Wholesale Debt Market
§         Options and
§         Retail Debt Market
The NSE index is also referred to as NIFTY and it is composed of 50 different Indian company stocks.
 
The Indian Share Market regulatory authority:
There has to be a regulatory authority that can control the exact way that the Indian share market works and this is carried out by The Securities and Exchange Board of India. The Securities and Exchange Board of India (SEBI) is considered the regulatory authority that controls the Indian Share Market and protects the interests to the investors. It passes all the laws required for efficient functioning of the Indian Share Market. Scams and fraudulent practices are a thing of the past due to the introduction of the high end risk management facilities provided in combination with online trading in the Indian Share Market.




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2010-06-26
You may have heard the words stock, share and equity and are quite confused about these 3 terms. But actually all these 3 words mean the same thing. A stock is an instrument that determines the actual ownership in a company (corporation). The shares that a person holds represent a claim in the company%u2019s (corporations) earnings and assets. The precise ownership in the company is determined by the number of shares a person owns divided by the total number of outstanding shares. When you acquire more stock your ownership stake in the company gets larger. Stock Market provide voting rights too. If the stakes in the company rises, the trader may get voting rights also.

If you hold a company%u2019s stock it means that you are one of the shareholders (owners) of the company and you certainly have a claim in the company. It means that you are an owner of each and every property, that the company owns, it may actually be a very tiny portion. Therefore as an owner you get a share of the company%u2019s earnings, profits and voting rights which are attached to that particular stock. A stock certificate represents the stock that you own. Your broker keeps this document because now days everything is online and the records are electronically maintained so that trading becomes easy.

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