Stock Exchange Note [ Best ]

by Mr. DJ

Stock Exchange Note

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Stock Exchange NoteSome important Stock Exchange Index and Country (location)

  • Nikkei, Pix = Japan
  • Kospi = Korea
  • Bove spa = Brazil
  • Simex = Singapore
  • Hang Seng = Hong Kong
  • FTSE = England

Bullet Points of Stock Exchange:

  • Bombay Stock Exchangeis the oldest Stock Exchange in Asia.
  • Full-form of SENSEX- Sensitive Index
  • Bombay Stock Exchange is situated in Dalal Street.
  • NASDAQis the World’s First Electronic Stock Exchange.
    NASDAQ: National Association of Securities Dealers Automated Quotations
  • New York Stock Exchange (NYSE)has the nick name “Big Board”. It is situated in Wall Street.
  • Full form of NIFTYis “National Stock Exchange Fifty”
    The NIFTY 50 index is the National Stock Exchange of India’s benchmark broad based stock market index for the Indian equity market. It represents the weighted average of 50 Indian company stocks in 13 sectors and is one of the two main stock indices used in India, the other being the BSE Sensex.
  • The BSE SENSEXis a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange.
  • Blue Chip Company:A company, whose share always provides profit. The name “blue chip” came about from the game of poker in which the blue chips have the highest value. A blue chip is stock in a corporation with a national reputation for quality, reliability, and the ability to operate profitably in good and bad times.
  • FTSE-100is a stock exchange of London, which monitors the activities of the European market.
  • The S&P 500, or just the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market.
  • First indian company to be listed in NASDAQ: Infosys
    Infosys Technologies became the first Indian company to be listed on the US NASDAQ in March 1999.
  • NASDAQis the second-biggest stock exchange in the world market cap (10,857 billion USD). The top 10 stock exchanges are: New York Stock Exchange, NASDAQ, Japan Exchange Group, Shanghai Stock Exchange, Hong Kong Stock Exchange, Euronext, London Stock Exchange Group, Shenzhen Stock Exchange, TMX Group, Bombay Stock Exchange.
  • Makemytripis listed in NASDAQ stock exchange but not in Indian BSE or NSE.
  • Mumbai stock exchange was founded in 9 July 1875While National stock exchange in 1992.
  • Stock market is regulated SEBI (The Securities and Exchange Board of India)
  • Masala bondsare bonds issued outside India an Indian entity or corporate. These bonds are issued in Indian currency than local currency.
    HDFC has been the first corporate in India to issue masala bond. LONDON STOCK EXCHANGE WELCOMES THE FIRST MASALA BOND ISSUED BY AN INDIAN CORPORATE, HFDC.

Functions of Stock Exchange

Following are some of the most important functions that are performed by  stock exchange:

  1. Role of an Economic Barometer:  Stock exchange serves as an economic barometer that is indicative of the state of the economy. It records all the major and minor changes in the share prices. It is rightly said to be the pulse of the economy, which reflects the state of the economy.
  2. Valuation of Securities: Stock market helps in the valuation of securities based on the factors of supply and demand. The securities offered by companies that are profitable and growth-oriented tend to be valued higher. Valuation of securities helps creditors, investors and government in performing their respective functions.
  3. Transactional Safety: Transactional safety is ensured as the securities that are traded in the stock exchange are listed, and the listing of securities is done after verifying the company’s position. All companies listed have to adhere to the rules and regulations as laid out by the governing body.
  4. Contributor to Economic Growth: Stock exchange offers a platform for trading of securities of the various companies. This process of trading involves continuous disinvestment and reinvestment, which offers opportunities for capital formation and subsequently, growth of the economy.
  5. Making the public aware of equity investment: Stock exchange helps in providing information about investing in equity markets and by rolling out new issues to encourage people to invest in securities.
  6. Offers scope for speculation: By permitting healthy speculation of the traded securities, the stock exchange ensures demand and supply of securities and liquidity.
  7. Facilitates liquidity: The most important role of the stock exchange is in ensuring a ready platform for the sale and purchase of securities. This gives investors the confidence that the existing investments can be converted into cash, or in other words, stock exchange offers liquidity in terms of investment.
  8. Better Capital Allocation: Profit-making companies will have their shares traded actively, and so such companies are able to raise fresh capital from the equity market. Stock market helps in better allocation of capital for the investors so that maximum profit can be earned.
  9. Encourages investment and savings: Stock market serves as an important source of investment in various securities which offer greater returns. Investing in the stock market makes for a better investment option than gold and silver.

Features of Stock Exchange:

  • A market for securities- It is a wholesome market where securities of government, corporate companies, semi-government companies are bought and sold.
  • Second-hand securities- It associates with bonds, shares that have already been announced by the company once previously.
  • Regulate trade in securities- The exchange does not sell and buy bonds and shares on its own account. The broker or exchange members do the trade on the company’s behalf.
  • Dealings only in registered securities- Only listed securities recorded in the exchange office can be traded.
  • Transaction- Only through authorised brokers and members the transaction for securities can be made.
  • Recognition- It requires to be recognised by the central government.
  • Measuring device- It develops and indicates the growth and security of a business in the index of a stock exchange.
  • Operates as per rules– All the security dealings at the stock exchange are controlled by exchange rules and regulations and SEBI guidelines.

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