Stock Exchange

Stock exchange is a market in which stocks Bought or sold. In Brief stock exchange provides services for stock brokers and traders to trade stock, bonds and securities. Stock exchanges also provide facility for issue and redemption of securities and other financial instruments. To be able to trade in stock on certain stock exchange it must be listed there. Stock exchange basically serves as primary markets where corporations, governments and incorporate bodies can raise capital by channeling savings of investors and secondary markets where investors can sell their securities to other investors for cash thus reducing the risk of investment and maintaining liquidity of system. Trades in older exchanges are conducted on the floor of exchange itself by shouting orders and instructions called outcry system. On modern exchange system trades are conducted over telephone or online. A stock exchange need not be treated as place of speculation or gambling. It should be act as a place of safe and profitable investment. Stock exchanges are the financial barometers of national economy of country. Industrial growth and stability is reflected in the index of stock exchange. Buying and selling transaction in securities at the stock exchange are governed by the rules and regulations of stock exchange as well as Security exchange board of India (SEBI) guidelines. There are 24 stock exchange of India, among them two are national level namely Bombay Stock Exchange (BSE) and National stock Exchange of India (NSE). The rest 21 are Regional Stock Exchange.

What is Stock? Why company issue stocks?

Stock or share shows your ownership stake in a corporation. If a company issue 1000 shares of stock then each individual share represents 1/1000 of that company.

Imagine you want to start your company or store. You decide you need 100000 Rs to establish your business. You divide company into 1000 piece or share of stock your price of each new share is 100 Rs. If you can sell the entire share you should have 1000*100 Rs means 100000 Rs which is the amount you required to establish company. Means a company raises their capital by issuing stocks and entitled stock owner or share holder to partial ownership of corporation.

 Simply if you are a stock holder it represents your claim on the company assets and earnings. Stock, share, equity are same thing.

What is Stock Market?

Hello Friends, Good Afternoon this is my first post on this blog. The aim of this blog is to educate traders and investor who want to start or started investing and trading in Indian share market. We discuss basic terms, news, updates and many things which are related to and affect stock market and capital market.

 To start firstly we have to know what stock market is.

In general terms a stock market is place where
stocks or shares of company are bought and sold, through stock exchange. In broad sense stock market is primarily a virtual exchange of securities and derivatives. Stock market lists the securities or shares of publicly traded companies. In next session we discuss what stock is and why companies issue stock?

Thank you