Stock Market Works

Topics: Stock market, Stock exchanges in India, Stock exchange Pages: 51 (15131 words) Published: May 3, 2013
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, trading on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading was broad but the brokers were hardly half dozen during 1840 and 1850. In 1860, the exchange flourished with 60 brokers. In fact the 'Share Mania' in India began with the American Civil War broke and the cotton supply from the US to Europe stopped. Further the brokers increased to 250. At the end of the war in 1874, the market found a place in a street (now called Dalal Street). In 1887, "Native Share and Stock Brokers' Association" was established. In 1895, the exchange acquired a premise in the street which was inaugurated in 1899.

Indian Stock Markets

200 years ago in front of Trinity church in East Manhattan in U.S oldest stock exchange called New York stock exchange emerged, when there were no paper money changing hands and there was not even the idea of stock, people trade silver for papers saying they owned shares in cargo .The trade flourished. During American Revolution, the colonial government needed money to fund its wartime operations. By selling bonds they did this. Bonds are pieces of paper a person buys for a set price, knowing that after a certain period of time; they can exchange their bonds for a profit. Along with bonds, the first of the nation’s bank started to sell parts or shares of their own company to people in order to raise money. Thus they sell the part of the company to whoever wanted to buy it. This led to the emergence of the modern day stock market.

The concept of stock markets came to India in 1875, when Bombay Stock Exchange (BSE) was established as ‘The Native Share and Stockbrokers Association', a voluntary non-profit making association. BSE is the oldest in Asia. Presently India has about 10,000 listed companies, the largest number of listed companies in the world. Stock exchanges in India can be categorized as: 1) Voluntary Associations such as Bombay, Indore and Ahmedabad, 2) Public limited companies such as...
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