Saturday, March 5, 2011

How To Start Investment In Stock Market

While investing in stock market first of all I would like to suggest you just clear your stock market basics. Share market basics are the backbone of investing in stock. Everyone wants returns in his investment but there are some strategies by which you can get return quickly. Initially I would like to introduce you about stock market.

Share Market and Stock Market both are approximately same because stock is a business entity which represents capital of business and share is a part of that business entity. Stock Market is a place where anyone can invest, buy or sell, in listed companies according to their fundamentals. Fundamentals of a company is directly related to company financial growth (how that company invest in their projects) companies operations like sales, earnings, resources, products and future prospective.

For this stock market there are some terminals, like NSE (National Stock Exchange), BSE (Bombay Stock Exchange), in which you trade your share online or through a broker. Today a lot of companies offer online trading facilities like PNB, ICICI, SBI etc. For this online trading a person should have a demat account in any bank.

National Stock Exchange: "National Stock Exchange" of India (NSE) is India's largest Stock Exchange & World's third largest Stock Exchange in terms of transactions, for both equities and derivatives trading. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalization. The "National Stock Exchange" of India was promoted by leading financial institutions at the behest of the Government of India; It was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE started operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives (Futures & Options) segment commenced in June 2000. The National Stock Exchange (NSE) located in Bombay.

Bombay Stock Exchange: The "Bombay Stock Exchange" (BSE) is the first stock exchange in Asia and largest number of listed companies in the world, with above 5000 companies in 2010. The "BSE SENSEX" (sensitive index), also called the "BSE 30", is a widely used market index in India and Asia. The Bombay Stock Exchange developed the BSE Sensex in 1986. The Bombay Stock Exchange switched to an electronic trading system in 1995. This automated, screen-based trading platform called BSE On-line trading (BOLT) currently has a capacity of 80 lakh orders per day. The BSE has also introduced the world's first centralized exchange-based internet trading system. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. It is located at Dalal Street, Mumbai, India.

8 comments:

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