stock market basic information

What's are stocks and exchanges in india.provided some information to where to buy the stocks. and documents required to buy the stocks

1. STOCK MARKET -T.BHARGAV REDDY Investor and financial advisor

2. Contents 1.whats are stocks ? 2.why to buy stocks ? 3. What is a stocks exhange? 4.whats is an IPO ? 5.How many exchanges in India ? 6.NSE 7.BSE 8.Where to buy the shares ? 9.Documents required to buy stocks?.

3. What is stock market ?   It is  a place where shares of pubic listed companies are traded . The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.

4. Some examples are  exchange-traded funds (ETFs), stock index and stock options, equity swaps, single-stock futures, and stock index futures . These last two may be traded on futures exchanges (which are distinct from stock exchanges—their history traces back to commodity futures exchanges), or traded over-the-counter.

5. Why do people buy stocks ? Stocks offer investors the greatest potential for growth (capital appreciation) over the long haul . Investors willing to stick with stocks over long periods of time, say 15 years, generally have been rewarded with strong, positive returns. But stock prices move down as well as up.

6. What are stocks ? Stocks represent ownership in a publicly traded company . When you buy a company's stock, you become part-owner of that company. For example, if a company has 100,000 shares, and you buy 1,000 of them, you own 1% of the company.

7. What is a stock exchange ? A stock exchange is  a centralized location that brings corporations and governments so that investors can buy and sell equities . Auction-based exchanges such as the New York Stock Exchange allow traders and brokers to physically and verbally communicate buy and sell orders.

8. What is IPO ? An unlisted company (A company which is not listed on the stock exchange) announces initial public offering (IPO) when it decides to raise funds through sale of securities or shares for the first time to the public. In other words, IPO is the selling of securities to the public in the primary market.

9. What Is The Stock Exchange? The stock exchange is like an organized marketplace that works as a facilitator of these transactions and enables the buying and selling of shares and other securities. To be precise, it is a platform that conducts the trading of financial instruments like stocks and derivatives. The activities on this platform in India are regulated by SEBI. Trading activities in the stock market include brokering, issuing of shares by companies, etc.

10. How many stock exchanges are there in India? There are two exchanges in india . Namely 1.NSE[national stock exhange ] 2.BSE[ bomboy stock exhange ]

11. 1.NATIONAL STOCK EXCHANGE NSE (National Stock Exchange) was incorporated in the year 1992. It was recognized as a stock exchange by India’s market regulator SEBI in April 1993, and NSE commenced operations in 1994 with the launch of the wholesale debt market, shortly followed by the launch of the cash market segment.

12. NSE was established as the first dematerialized electronic exchange in the country and is considered the first exchange in the country to provide a modern, fully automated screen-based electronic trading system that offered easy trading facilities to investors spread across the length and breadth of the country. NSE's flagship index, the NIFTY 50, which was launched in 1996, is used extensively by investors in India as well as around the world as a barometer of the Indian capital market. 

13. Stock Exchanges The stock exchanges are the exclusive centres for trading of securities. Listing of companies on a Stock Exchange is mandatory to provide an opportunity to investors to invest in the securities of local companies. The trading volumes on exchanges have been witnessing phenomenal growth for last few years. Since the advent of screen based trading system in 1994-95, it has been growing by leaps and bounds and reported a total turnover of Rs.51,30,816 crore during 2007-08. The growth of turnover has, however, not been uniform across exchanges as may be seen

14. The business moved away from small exchanges to big exchanges, which adopted technologically superior trading and settlement systems. The huge liquidity and order depth of big exchanges further diverted liquidity of other stock exchanges. The 19 small exchanges put together reported less than 0.02% of total turnover during 2007-08, while 2 big exchanges accounted for over 99.98 % of turnover. For most of the exchanges, the raison d’être for their existence, i.e. turnover, has disappeared. NSE and BSE are the major exchanges having nationwide operations.

15. How many stocks in NSE ? The Stock market or Equities market is where listed securities are traded in the secondary market. Currently  more than 1300  securities are available for trading on the Exchange. NSE is the biggest stock exchanges in India, while BSE is Asia’s oldest stock exchange. The volumes traded in NSE are way more than that traded in BSE.

16. 2.BOMBAY STOCK EXCHANGE ? Sensex means portmanteau of Sensitive and Index. The Sensex is an index, which reflects the Bombay Stock Exchange (BSE). It is an Index that comprises 30 stocks on BSE. It reflects the movements in the Indian stock market. The BSE is also a Partner Exchange of the United Nations Sustainable Stock Exchange initiative, joining in September 2012.

BSE established India INX on 30 December 2016. India INX is the first international exchange of India.

17. HISTORY OF BSE ? BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange located on Dalal Street in Mumbai. Established in 1875 by cotton merchant Premchand Roychand, a Rajasthani Jain businessman, it is the oldest stock exchange in Asia, and also the tenth oldest in the world.

18. BSE started in.. Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd.), is Asia’s first Stock Exchange and one of India’s leading exchange groups and has played a prominent role in developing the Indian capital market.

19. How many stocks are traded in BSE? BSE stands for Bombay Stock Exchange and it is one of the oldest stock exchanges in Asia and deserves to have the largest number of listed companies in the world. Overall it has around 8900 stocks listed in that only 3000 stocks will be traded daily.

20. How do I buy stocks for the first time? The easiest way to buy stocks is through an online stockbroker. After opening and funding your account, you can buy stocks through the broker’s website in a matter of minutes. Other options include using a full-service stockbroker, or buying stock directly from the company.

21. What documents are required to buy share? To open a demat and trading account, you need to submit these documents:
Identity proof. PAN card is mandatory (ensure your photo and signature on the card are visible)
Address proof (any one of these) ...
Income proof (any one of these) ...
Signature on white paper. ...
Bank proof (any one of these) ...
Photograph.

22. Thank you