A ‘Stock Market’ is any type of exchange where stocks & shares are bought & sold. A stock market may be physical or entirely virtual. The New York Stock Exchange is world’s largest exchange in terms of value & capitalization. Some basic terms in stock market are shares, exchanges, prices, dividends & capital gains. This post will give you a basic introduction to stock market in India.
When an investor buys a stock then he owns a part of the company & he can gain and lose money. As an example the factors that influence the market price of Reliance Industries include government policy, exchange rates and aggregate global economic growth, companies own policy, competitor activities etc.
Philadelphia stock exchange in 1790 was the first stock exchange. The price of a stock typically driven by the law of supply and demand. If the numbers of the buyer of a stock are greater than the number of those willing to sell, the stock price rises, while the opposite is also true. The basic stock market theory states that the price movements of a stock should be determined by a company’s profitability.
After dominating the world economy for nearly three centuries, the New York stock exchange faced its first legitimate challenger in 1970. In 1971, two organizations – the National Association of Securities Dealers and Financial Industry Regulatory Authority – created the NASDAQ stock exchange. NASDAQ has always been organized differently from traditional stock exchanges.
Today virtually every country in the world has its own stock market. Stock markets can be found around the world and there’s no denying the global importance of stock markets. Every day trillions of dollars are traded on stock markets around the world. One of the many advantages of having stock markets around of the world is the fact that there is almost always a market open in some part of the world.
While discussing the introduction to stock market in India, we must mention that India has its oldest stock exchange named Bombay Stock Exchange, that was founded on 1875 and located at Dalal Street in Mumbai. Later, on 1992 National Stock Exchange was formed and is now one of the most popular exchanges for all stock traders of this country. Both the stock markets are open during 9:15 am to 3:30 pm and those market works Monday to Friday.