Stock market is a place where shares of Publically Listed Companies are traded. A Stock market, equity market or share market is the aggregation of buyers and sellers of stock, which represent ownership claims on businesses these may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity Crowd Funding platforms. The stocks are shares of companies which are publically listed. A Company become Publically Listed by Initial Public Offering [IPO], i.e. the process in which companies decided to go public when they earn profits and capital returns and if public demand for the company's shares increases.
There are 60 Stock Exchange in the world. Each Country has their own Stock Market in their Country. The Amsterdam Stock Exchange is the oldest Stock Market in the world. India there are 2 Stock Exchange.
1)BSE - Bombay Stock Exchange.
Bombay Stock Exchange is located in Mumbai. Established in 1875, it is the oldest Stock Exchange in Asia and also the tenth oldest in the world.
Market capital: Rs 255.003 trillion.
Location : Mumbai, India.
Founded: 9 July 1875, 146 years ago.
Number of Listing: 5439.
2) N S E - National Stock Exchange.
National Stock Exchange is located in Mumbai, Maharashtra. It is under the ownership of some leading financial institutions, banks and insurance companies. N S E was established in 1992 as the first dematerialized electronic exchange in the country.
Market Capital: $3.4 trillion.
Location: Mumbai, India.
Number of Listing: 2002.
Indices: Nifty50.
Indices are a measurement of the price performance of a group of share from an exchange.
Indices in BSE is S E N S E X. It is the measurement of price performance of first 50 companies of BSE.
Indices of N S E is Nifty50. Nifty50 is the measurement of price performance of first 50 companies of N S E.
BSE and N S E are secured by Government wing named S E B I or Security and Exchange Board of India. It is a stream created for Stock market by Government of India. Any scam and fraud is securely stopped by S E B I. It has the authorized power to take action against fraud in stock market.
Why Stock Market?
Stock Market is the indicator of economy of a Nation. Any crises and rises in Stock Market indicates the movement of economy. Stock Market helps Publically Listed Companies to expand its capital by providing shares to public. These shares are brought by public, whom we called investors.
Investors are of Individual/Retail Investors, Mutual fund, Foreign investors, Institutional investors, Asset management company.
The Stock market let buyers and sellers negotiate price and makes trades. Investors purchase shares, which allows the company to raise money to grow the business. Here the sellers sells the stocks for the price higher than they bought to make profit and the buyers buy the shares of the company to sell it for high price.
Thus, Stock Market helps investors and companies to become financially independent.
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