National Stock Exchange (NSE) notes.pptx

Stock exchange
National stock exchange
Benefits and purpose
Index
Nifty 50

1. National Stock Exchange

2. Introduction … Stock Market: A platform where investors buy and sell shares of publicly listed companies. National Stock Exchange: An electronic platform where the investors can carry out trading, buy and sell equities, stock, debts and shares from the different stock markets or financial markets. This electronic facility provided the clients even in remote areas to access the stock price information with ease. This process does not involve any market experts or specialists.

3. NSE … NSE was incorporated in 1992 (Mumbai). It was recognized as a stock exchange by Securities and Exchange Board of India (SEBI) in April 1993 and commenced operations in 1994 with the launch of the wholesale debt market, followed shortly after by the launch of the cash market segment. NSE is ranked as the 5th largest stock exchange in the world by total market capitalization. NSE is ranked as the second largest stock exchange globally in terms of number of equity trades, as per World Federation of Exchange (WFE) Report - 2024.

4. Indices … The benchmark index for the NSE is the Nifty 50 An Index is used to evaluate performance of a stock market and get idea about the economy. Used to give information about the price movements of products in the financial, commodities or any other markets.

5. Benefits of NSE… Fast transactions – The rapid pace of placing orders allows the investors to avail of the stock at the best prices. Premium marketplace – The expenses of trading for investors decrease as the volume of trading activity in the stock exchange lowers the costs. Trade statistics – The trade statistics of a company can be evaluated, due to which the performance of the organization can be tracked.

6. Purpose of National Stock Exchange... To provide a transparent, efficient, and nationwide platform for trading in securities such as equities, debt instruments, and derivatives. Exposure of investors to electronic trading Raising capital Economic efficiency

7. Exposure of investors to electronic trading… Using an electronic trading system, investors can get fair and efficient securities from the financial market. It provides a nationwide trading facility for debt instruments, shares and equities. It enables appropriate communication and an interactive network for investors with equal opportunities. To enhance the standard of the securities market to a global level. It was established to meet the needs of shorter settlement cycles and book entry settlements systems. To provide easy access to any individual even in remote areas for trading facilities. It facilitates easy trading by prioritizing the orders as per the best prices available. It allows individuals to decide the value and efficiency of the company through supply and demand.

8. Raising capital… By issuing new shares and equities the companies are able to raise the capital fund for their own profit and expansion of business and financial operations. This increases the company’s revenue.

9. Economic efficiency… The National stock Exchange allows individuals to invest their cash merely for saving funds. Hence, if the capital invested remains untouched then the cash is used for other economic purposes, resulting in a more efficient economy. 

10. Conclusion… The National Stock Exchange of India has paved the way to completely transform the trading market into virtual or electronic trading. It provides a fully automated and modern way of the stock exchange which has helped so many individuals to buy and sell the stocks. Therefore, the NSE is India’s largest financial market that enables efficient and fair transactions between investors and clients. The modern days are going to be fully relying on digitalization and NSE has fulfilled these functions by establishing the first electronic stock market nationwide. Moreover, NSE is still finding ways to foster more innovative methods for trading in its technological space.

11. Reference … https://www.nseindia.com/national-stock-exchange/about-nse-company https://unacademy.com/content/bank-exam/study-material/general-awareness/national-stock-exchange https://www.slideshare.net/slideshow/national-stock-exchange-of-india-254953086/254953086#24

12. Thank You Submitted By, Akhilamol P