Stock Exchange
A stock exchange or share market is a corporation or mutual
organization which provides facilities for stock brokers and traders, to trade
company stocks and other securities. Stock exchanges also provide facilities
for the issue and redemption of securities as well as other financial
instruments and capital events including the payment of income and dividends.
There are 2 recognized Stock Exchanges in India for Share
Trading:
A. BSE
(Bombay Stock Exchange) is the oldest stock exchange in Asia with a
rich heritage, now spanning three centuries in its 133 years of existence. What
is now popularly known as BSE was established as "The Native Share &
Stock Brokers' Association" in 1875, there are around 5000 + shares listed
on BSE.
B. NSE
(National Stock Exchange) was incorporated in November 1992 and
currently has around 1500 shares listed and has a trading facility for Cash,
Derivative and Currency derivative products. The highest turnover in Indian
Equity markets happen on NSE currently.
These are an Electronic platform based trading exchanges
graduated from the traditional OTC (over the counter) mode of trading.
Stock Market Index
A stock index or stock market
index is a measurement of the value of a section of the stock market. It is computed from the weighted average
prices of selected stocks. It is a tool used by investors and
financial managers to describe the market, and to compare the return on
specific investments.
Sensex and Nifty are
the two major indices of Indian Share Market. The Sensex is an indicator
of all the major companies of the BSE. The Nifty is an indicator of all
the major companies of the NSE. If the Sensex goes up, it means that the
prices of the stocks of most of the major companies on the BSE have gone up. If
the Sensex goes down, this tells you that the stock price of most of the major
stocks on the BSE have gone down. Same goes for Nifty and NSE.
Besides Sensex and the Nifty there are many other indexes.
There is an index that gives you an idea about whether the mid-cap stocks go up
and down. This is called the “BSE Mid-cap Index”. There is an index for
the metal stocks. There is an index for the FMCG stocks. There is an index for
the automobile stocks etc. There are many other types of indexes.
About DreamGains
DreamGains Financials India Private Limited formed in 2004 as an independent and privately owned company is build upon the principles of teamwork and partnership.It is a trusted name in the financial service arena and provides you with an entire gamut of services under one roof. It today has emerged as a premium Indian stock consultancy, with an absolute focus on business and a commitment to provide “Real value for money” to all its clients.
No comments:
Post a Comment