Saturday, 19 November 2011

What are the Stock Exchanges in India?

In India TWO stocks markets are available.


1 BOMBAY STOCK EXCHANGE (BSE)
2 NATIONAL STOCK EXCHANGE (NSE)


If you want to trade on any stock, that company must be listed either of the exchanges. The Stock Exchanges are an organised marketplace, either corporation or mutual organisation, where members of the organisation gather to trade company stocks and other securities. The members may act either as agents for their customers, or as principals for their own accounts.

Stock exchanges also facilitate for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerised. The trade on an exchange is only by members and stock broker do have a seat on the exchange.

Financial markets like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are countries economic barometer (a guide to economic growth). Stock markets like NSE and BSE enable trading of a company's stock. First let us understand the Working of a stock (stock) market.
To learn more about how you can earn on the stock market, one has to understand how it works. A person want to buy/sell stocks in the stock market has to first place his/her order with a broker or can do themselves using online trading systems. When the buy order of the stocks is communicated to the exchange. The order stays in the queue of exchange's other orders and gets executed if the price of that stock comes to that value. The stocks purchased will be sent to the you either in physical or demat format


What is the basic requirement to enter in to STOCK MARKET

Before investing in stock market, you should know the basics to start.

What are the Stock Exchanges in India?
What is Dmat account?
What is Online Trading Account?
Stock Market terminology?
Types of Trading processes?
How to analyze the stock? (Fundamental Analysis of stocks)
How to buy and sell the shares?
How to do trading online?
Tips to buy/sell stocks?

You will get all the answers in this blog.

If any one needs more information about the basics of stock market, please post in the blog.

Stock Market Basics - Understanding WHAT IS A STOCK MARKET

What is a STOCK MARKET?

The ownership of a company is divided in to small parts called a STOCK. Any individual person having stocks in a particular company is a share holder / small owner of that company. Person carrying more number of stocks will have more ownership and they will be the Chairman, Directors of that company.


Stocks are issued by companies in order to increase the capitals for the company operations and run. Every individual have a small share of the company will gain profit if the company runs in good condition.

All the transactions of buying and selling of shares are happens in a place is called STOCK MARKET.


How Transactions will happen in STOCK MARKET ?
What is the basic requirement to enter in to STOCK MARKET ?

You will learn every thing here in detail.