Stock exchange is something about which many people are still unaware, here I am talking specifically about India its stock exchange and other facts related to it. A stock exchange is basically a place where an individual can buy and sell stocks. The oldest stock exchange in India happened in the year 1857 in Bombay (Mumbai)
A stock which is also known as an equity lets a common man invest into a corporation and they get a share in companies’ asset and profit depending upon how much share they own. The costliest share in India is approximately seventy-two thousand for one, it is of MRF and the costliest share of the world is Berkshire Hathaway. If we go into the technicality of the topic there are number of concept and terms.
Bull and Bear
This concept of Bull and Bear is the most common one it basically reflects the condition of stock market just like the name a bull is considered an active and fierce animal and a bear is lazy, a bull here stands for a purchaser who invest in stocks and earns great profit as he invested at the right time where as a bear is just the opposite, he sells stock. Both resembles different condition.
Rule of 72
Which is a beginner rule, used to calculate the time required to double the capital, the calculation is done by number 72.
In India there are two popular stock exchange venue The Bombay Stock exchange and the national stock exchange. Out of the two BSE is the older one it was established back in 1875 and it is the first ever stock exchange of Asia, apart from this on-line trading was introduced through Bombay stock Exchange, it is the 12th biggest market place for stock exchange in world.
Then, there is National Stock exchange, which came in 1992 and bought electronic exchange with it, this changed the traditional style. It is the 10th biggest stock exchange market. It is more advanced as compared to Bombay stock exchange in terms of facilities and both are separate. Both have different value as in capital and enjoy different position in the world and Indian market. There are in total 9 stock exchange in India including Bombay Stock Exchange and National Stock Exchange.
A stock market plays a significant role in an economy that is why they exist, it is a platform that links a buyer, a seller, a company and most importantly they reflect the condition of a country’s economy.
Stock marked is termed risky because in case the market falls a purchaser will have to face high loss but, if the value of share increases it will lead to profit.
But as a responsible citizen we should always be aware about the ongoing trends and condition of stock market even if we don’t want to invest. There is a small population that invest into stock market reason can be many like the risk associated etc. but, at the same time we have great investors like Rakesh Jhunjhunwala and others.
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