Preview

Stock Market Works

Powerful Essays
Open Document
Open Document
15131 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Stock Market Works
Stock Market

Stock Market is a market where the trading of company stock, both listed securities and unlisted takes place. It is different from stock exchange because it includes all the national stock exchanges of the country. For example, we use the term, "the stock market was up today" or "the stock market bubble."

Stock Exchanges In India

➢ Bombay Stock Exchange ➢ National Stock Exchange ➢ Regional Stock Exchanges ➢ Ahmedabad Stock Exchange ➢ Bangalore Stock Exchange ➢ Bhubaneshwar Stock Exchange ➢ Calcutta Stock Exchange ➢ Cochin Stock Exchange ➢ Coimbatore Stock Exchange ➢ Delhi Stock Exchange ➢ Guwahati Stock Exchange ➢ Hyderabad Stock Exchange ➢ Jaipur Stock Exchange ➢ Ludhiana Stock Exchange ➢ Madhya Pradesh Stock Exchange ➢ Madras Stock Exchange ➢ Magadh Stock Exchange ➢ Mangalore Stock Exchange ➢ Meerut Stock Exchange ➢ OTC Exchange Of India ➢ Pune Stock Exchange ➢ Saurashtra Kutch Stock Exchange ➢ Uttar Pradesh Stock Exchange ➢ Vadodara Stock Exchange

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 facilitates 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.

History of Indian Stock Market:

Indian stock market marks to be one of the oldest stock market in Asia. It dates back to the close of 18th century when the East India Company used to transact loan securities. In the 1830s,

You May Also Find These Documents Helpful

  • Good Essays

    Sample Question of Fin110

    • 1206 Words
    • 5 Pages

    An interconnected network of brokers and exchanges licensed by the government to assist investors in trading securities…

    • 1206 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Nyse Vs Nasdaq Essay

    • 584 Words
    • 3 Pages

    When we discuss the stock market we discover that it is an organization where equities are exchanged between buyers and sellers and the first thing that should come to our mind is either the New York Stock Exchange (NYSE) or National Association of Securities Dealers (NASDAQ). They are two exchanges who account for the trading of a major portion of equities in…

    • 584 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    How the market works

    • 18580 Words
    • 75 Pages

    Drucker, Peter F.; Maciariello, Joseph A. (2004): The Daily Drucker. 366 days of insight and…

    • 18580 Words
    • 75 Pages
    Satisfactory Essays
  • Powerful Essays

    Revision Q&a

    • 2987 Words
    • 12 Pages

    Students are expected to note that dealers provide immediacy in trade and hence make a market as they hold an inventory of the assets that they deal in. Brokers on the other hand do not hold an inventory but act as sales agents making a living on sales commission. Brokers do not provide the advantages of intermediation ie (maturity, liquidity, risk or asset transformation) and hence they do not create financial assets. Brokers facilitate an existing market by bring buyers and sellers together.…

    • 2987 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Stock

    • 6769 Words
    • 28 Pages

    A stock market is a market for the trading of company stock, and derivatives of same; both of these are securities listed on a stock exchange as well as those only traded privately. Contents [hide] [ The term 'the stock market ' is a concept for the mechanism that enables the trading of company stocks (collective shares), other securities, and derivatives. Bonds are still traditionally traded in an informal, over-the-counter market known as the bond market. Commodities are traded in commodities markets, and derivatives are traded in a variety of markets (but, like bonds, mostly 'over-the-counter '). The size of the worldwide 'bond market ' is estimated at $45 trillion. The size of the 'stock market ' is estimated as about half that. The world derivatives market has been estimated at about $300 trillion.[1] The major U.S. Banks alone are said to account for about $100 trillion. It must be noted though that the derivatives market, because it is stated in terms of notional outstanding amounts, cannot be directly compared to a stock or fixed income market, which refers to actual value. The stocks are listed and traded on stock exchanges which are entities (a corporation or mutual organization) specialized in the business of bringing buyers and sellers of stocks and securities together. The stock market in the United States includes the trading of all securities listed on the NYSE, the NASDAQ, the Amex, as well as on the many regional exchanges, the OTCBB, and Pink Sheets. European examples of stock exchanges include the Paris Bourse (now part of Euronext), the London Stock Exchange and the Deutsche Börse. [edit] Trading Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open…

    • 6769 Words
    • 28 Pages
    Good Essays
  • Good Essays

    A stock market is a public market for the trading of company stock or shares. The market function is where companies can raise funds for their business by issuing shares to investors. Also, where the investors can buy and/or sell these shares. Companies benefit from this because, market values for their shares are high, and they will be able to raise additional capital if they need to.…

    • 712 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Interim Internship Report

    • 34080 Words
    • 137 Pages

    US Dollar (USD), Swiss Franc (CHF), Australian Dollar (AUD), Japanese Yen (JPY), Great Britain Pound (GBP), Euro (EUR).…

    • 34080 Words
    • 137 Pages
    Powerful Essays
  • Good Essays

    Business Journalism

    • 3178 Words
    • 13 Pages

    A market in which individuals and institutions trade financial securities. Organizations/institutions in the public and private sectors also often sell securities on the capital markets in order to raise funds. Thus, this type of market is composed of both the primary and secondary markets.…

    • 3178 Words
    • 13 Pages
    Good Essays
  • Best Essays

    [ 3 ]. 2. Gupta, A.P. and S.K. Srivastawa. (1995), Development of Stock Market in India. Anmol Publications…

    • 1758 Words
    • 8 Pages
    Best Essays
  • Good Essays

    * Undertake any business relating to the Stock Exchange, such as a clearing house, securities depository center or similar activities;…

    • 402 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Nifty Calculation

    • 2865 Words
    • 12 Pages

    Stock market is a market where the trading of company stock, both listed securities and unlisted takes place. It is different from stock exchange because it includes all the national stock exchanges of the country. Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers, or as principals for their own accounts.…

    • 2865 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Stock Trading Mechanism

    • 608 Words
    • 3 Pages

    The way how the system works are handled by brokers, dealers, and specialists. A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. Generally, it’s someone who acts as a middleman for an investor. The broker accepts the investment intentions of the investor and then acts in the market for the investor. The broker takes an order for a certain number of shares of stock, tells the investor what the current market for that stock is, and then buys or sells the stock. A dealer executes trade for his/her firm’s own account. Securities bought for the firm’s own account may be sold to clients or other firms, or become a part of the firm’s holdings. A specialist is a stock exchange member who makes a market for certain exchange-traded securities, maintaining an inventory of those securities and standing ready to buy and sell shares as necessary to maintain an orderly market for those shares.…

    • 608 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    STOCK EXCHANGE OF INDIAN

    • 434 Words
    • 2 Pages

    "An association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities."…

    • 434 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Stock Exchange

    • 450 Words
    • 2 Pages

    Stock exchange provides a ready and continuous market for purchase and sale of securities. It provides ready outlet for buying and selling of securities. Stock exchange also acts as an outlet/counter for the sale of listed securities.…

    • 450 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The commencement of E-Trading and Demat has transformed the capital market in India. With the help of Demat and Trading account, buying and selling of shares has become a much faster and even process than trading with the assistance of a physical broker. It provides for the assimilation of bank, broker, stock exchange and depository participants. This helps to get rid of the painstaking procedure of investing in stock exchange. Today, if one wants to invest in stock market, he has to contact a broker on phone or meet him personally to place order. A broker generally gives such importance and additional service only to high net worth customers. But the introduction of Internet trading, even a common or a small investor gets an opportunity to avail the service at an affordable price which is much lesser than what is charged by a physical broker over the phone. Online trading has given customer a real time access to account information, stock quotes elaborated market research and interactive trading.…

    • 1214 Words
    • 5 Pages
    Better Essays