Stock exchange is a body which act as a mediator and facilitates buying and selling of shares for execution of their respective orders. Some of the well-known exchanges are BSE, NSE, NYSE, NASDAQ etc. For trading any stocks on exchange the company must first get listed on that exchange.
Stock exchange provides the platform to traders and investors for buying and selling stocks and shares. It connects sellers with prospective buyers to enable smooth trade of shares.
The Bombay Stock Exchange, known as BSE is the oldest Stock Exchange of India. Other prominent Stock Exchange is the National Stock Exchange or NSE. Both these exchanges are based in Mumbai. Investors can only trade in the stocks of a company which is listed on that particular company. Currently there are around 1500 companies on the NSE and close to 5000 companies on BSE.
Stock exchanges play a prominent role in the consolidation of the national economy and also help in the development of industrial sector especially. India is a developing economy, and in such countries, these exchanges play a cardinal role. They help in mobilizing the savings and ensure safety at the same time. These mobilization helps in promoting the level of capital formation.
Stock exchanges play a very important role not only in capital markets but in the whole economy. Some of the key functions of stock exchanges include:
• They help in mobilization of saving
• They help to promote capital formation
• They help in maintaining liquidity of investments
• They promote investment safety
• They provide a very wide market for securities
• They help in raising funds for development purposes
• They act as a barometer of national economy
The stock exchanges help the capital markets in a number of ways through their diversified economic services including liquidity of investments, marketability, evaluation of securities etc. However, before you step into the lucrative world of stock exchanges and capital markets, it is better to get your risk profile evaluated to have an idea about the amount of risk you can bear in the market.
Stock exchange provides the platform to traders and investors for buying and selling stocks and shares. It connects sellers with prospective buyers to enable smooth trade of shares.
The Bombay Stock Exchange, known as BSE is the oldest Stock Exchange of India. Other prominent Stock Exchange is the National Stock Exchange or NSE. Both these exchanges are based in Mumbai. Investors can only trade in the stocks of a company which is listed on that particular company. Currently there are around 1500 companies on the NSE and close to 5000 companies on BSE.
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