share market
TRANSCRIPT
SHARE MARKET
It was in 1875 that the Indian Share Market first started functioning. The first share trading association in India was known as the Native Share and Stock Broker's Association, only to become the Bombay Stock Exchange (BSE) later on.
INTRODUCTION
WHAT IS STOCK MARKET??
A stock market is an institution where humans and computers buy and sell shares of companies.It is the aggregation of buyers and sellers of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately. It is also an open market for fiscal operations such as trading of a firm's share and derivatives at a fixed cost.
SHARES Shares are small pieces of a company.
Shares can be bought by humans, companies, and mutual funds. When buying shares in a company, the buyer owns a small part of that company.
The price of a share can be based on many different things.
The main thing that affects the price is the balance between supply and demand. If many buyers want to buy a stock the price goes up. If there are more sellers than buyers, the price goes down.
TRADETrade in stock markets means the
transfer for money of a stock or security from a seller to a buyer. This requires these two parties to agree on a price.
Participants in the stock market range from small individual stock investors to larger traders investors, who can be based anywhere in the world, and may include banks, insurance companies or pension funds, and hedge funds.
Their buy or sell orders may be executed on their behalf by a stock exchange trader.
MARKET PARTICIPANT Market participants include individual
retail investors, institutional investors such as mutual funds, banks, insurance companies and hedge funds, and also publicly traded corporations trading in their own shares.
Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors.
STOCKS BROKER Some buyers trade shares in
stocks through a stockbroker. A stockbroker is a person who buys or sell stocks for their customers. A stockbroker can also help customers make choices in stocks. Their advice is based on public information about the companies.
BSE(BOMBAY STOCK EXCHANGE)
IT IS KNOWN TO BE THE OLDEST STOCK EXCHANGE IN THE ENTIRE ASIAN REGION.
IF SOMEONE WANTS TO KNOW ABOUT THE HISTORY OF THE INDIA SHARE MARKET, IT BECOMES SYNONYMOUS WITH THE HISTORY OF THE BOMBAY STOCK EXCHANGE.
IT STARTED FUNCTIONING IN 1875 WITH THE NAME 'THE NATIVE SHARE AND STOCK BROKER'S ASSOCIATION'. UNDER THE SECURITIES CONTRACTS (REGULATION) ACT, 1956,
THE ASSOCIATION GOT ITS RECOGNITION AS A STOCK EXCHANGE IN 1956. WHEN IT STARTED, IT WAS JUST AN ASSOCIATION OF PERSONS BUT WITH THE RECOGNITION IT GOT TRANSFERRED TO A CORPORATE AND DEMUTUALISED ENTITY.
SENSEX The main index of BSE is known as
the BSE SENSEX or simply SENSEX (Sensitivity Index). It is an index which comprises of 30 financially sound company with an option to be reviewed and modified from time-to-time. The index calculation is based on the 'Free-float Market Capitalization' methodology.
• It is considered to be the leader in the stock exchange scenario in terms of the total volume traded.
• The products that are traded in the National Stock Exchange are:-
• Equity or Share• Futures (both index and stock)• Options (Call and Put)• Wholesale Debt Market• Retail Debt Market• NSE has a fully automated screen based trading system which
is known as the NEAT system. The transactions are carried on with speed, efficiency, and are all transparent. The risk management system of the National Stock Exchange is world class and can be considered as the benchmark for other bourses. (STOCK MARKET)
NSE (National Stock Exchange )
NIFTY The leading index of NSE is
known as Nifty 50 or just Nifty. It comprises of 50 diversified benchmark Indian company scrips and is constructed on the basis of weighted average market capitalization method.
The stock market is one of the most important ways for companies to raise money, along with debt markets which do not trade publicly.
This allows businesses to be publicly traded, and raise additional financial capital for expansion by selling shares of ownership of the company in a public market.
It is an attractive feature of investing in stocks, compared to other less liquid investments such as property and other immoveable assets. Some companies actively increase liquidity by trading in their own shares.
Importance of stock marketFunction and purpose
SEBI Regulatory Authority of Indian
Share Market SEBI or Securities and Exchange
Board of India is the market watchdog and has the responsibility of protecting the investors' interests, develops regulatory norms and helps in the development of the securities market in India.
HOW TO BE SUCESSFUL IN SHARE MARKET
THE KEY FOR SUCCESS IN THE STOCK MARKET IS THE SELECTION OF THE RIGHT STOCKS AND DETERMINING THE PRICE RANGE AT WHICH YOU SHOULD INVEST IN THE STOCKS. IF YOU CAN GET THESE TWO THINGS RIGHT YOU CAN MAKE A FORTUNE AT THE STOCK MARKET
