Wednesday, 27 February 2013

Stock Exchange

Stock exchange is a market in which stocks Bought or sold. In Brief stock exchange provides services for stock brokers and traders to trade stock, bonds and securities. Stock exchanges also provide facility for issue and redemption of securities and other financial instruments. To be able to trade in stock on certain stock exchange it must be listed there. Stock exchange basically serves as primary markets where corporations, governments and incorporate bodies can raise capital by channeling savings of investors and secondary markets where investors can sell their securities to other investors for cash thus reducing the risk of investment and maintaining liquidity of system. Trades in older exchanges are conducted on the floor of exchange itself by shouting orders and instructions called outcry system. On modern exchange system trades are conducted over telephone or online. A stock exchange need not be treated as place of speculation or gambling. It should be act as a place of safe and profitable investment. Stock exchanges are the financial barometers of national economy of country. Industrial growth and stability is reflected in the index of stock exchange. Buying and selling transaction in securities at the stock exchange are governed by the rules and regulations of stock exchange as well as Security exchange board of India (SEBI) guidelines. There are 24 stock exchange of India, among them two are national level namely Bombay Stock Exchange (BSE) and National stock Exchange of India (NSE). The rest 21 are Regional Stock Exchange.

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