Investing in the stock market is one of today's most pressing needs. It is a calculated investment in which you can earn good returns if you conduct proper research and invest. If you are interested in investing in the stock market, ask Laxmi Bhai about the meanings of specific terms related to the stock market. Learn about shares and the stock market in this video.
Shares are equity ownership units in a corporation. Shares exist as a financial asset for some companies, providing for an equal distribution of any residual profits, if any are declared, in the form of dividends. Shareholders of a stock that does not pay dividends are not entitled to a profit distribution. Instead, they expect to profit from the rise in the stock price as the company's profits rise.
The share market or Stock Market is a marketplace where buyers and sellers can trade publicly traded shares at specific times of day. The terms share market' and stock market' are frequently used interchangeably.
To be more specific, it is a trading platform for financial instruments such as stocks and derivatives. SEBI regulates the activities on this platform in India. Brokering and the issuance of shares by corporations are examples of stock market trading activities.
While there is no denying that BSE AND and NSE are the two major stock exchanges in India, according to SEBI, there are currently seven recognised stock exchanges in India.
BSE (Bombay Stock Exchange) is not only India's but also Asia's first stock exchange, having been founded in 1875 under the name 'The Native Share & Stock Broker's Association'. It was established by cotton merchant Premchand Roychand, also known as the "cotton king" and "bullion king." It is located on Dalal Street in Mumbai.
The National Stock Exchange (NSE) was founded in 1992. In April 1993, India's market regulator SEBI recognised it as a stock exchange, and the NSE began operations in 1994 with the launch of the wholesale debt market, followed by the launch of the cash market segment.