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About Indian Stock Market

In 18th century, East India company established Stock exchange in India. In 1860, exchanges had 60 brokers and it was going very well, in 1874 with the rapidly developing share trading business, brokers used to gather at a street (now well-known as “Dalal Street”) for transacting businesses. In 1946 India had only seven exchanges and in 1995 constricted to 22 exchanges.

Stock Exchanges are organized marketplaces, either corporation or mutual organization, where members of the organization gather to trade company stocks and other securities. Indian stock market have 23 exchanges, in which two stock exchanges are most powerful, they are BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

BSE, Bombay stock exchange established in 1875, and have listed 4700 companies. BSE is the oldest exchange in all over Asia, other name of BSE is BSE-30. BSE index is managed by Top 30 companies and most of Indian investors and foreign investors are investing their money in BSE. All the activities are performing by BSE under the SEBI rules and regulation. The values of all BSE Indices are updated on real time basis during market hours and displayed through the BOLT system, BSE website and news wire agencies and all BSE Indices are reviewed by the BSE Index Committee. The timimg of trading in BSE is from 9 am to 3:30 pm and we can trade only Monday to Friday.

NSE, National Stock Exchange established in 1992 and it have 1587 numbers of listing. NSE consists as main indexes like S&P CNX NIFTY, CNX NIFTY JUNIOR, S&P CNX 500. It is the largest exchange in India in terms of daily trades and turnover and expected biggest exchanges in India in terms of market capitalization. NSE is set of leading financial institution, insurances companies, banks and other financial organizations but, all rules and regulation followed are handled by NSE committee. NSE is the third largest Stock Exchange in the world in terms of the number of equities and trades, It’s the second fastest growing stock in the world with a recorded growth of 16.6%. NSE consist five major market these are Future & Option market, Equity, Retail & Debt, Wholesale Debt, Currency Future market. The timimg of trading in NSE is from 9 am to 3:30 pm and we can trade only monday to friday

Apart from that some other exchanges are also existing in Indian stock market has known as regional exchanges named as Madras, Delhi, Jaipur etc. In India there are some other exchanges also, which are totally different with these stock exchanges known as MCX exchange, NCDEX exchange.

If anyone wants to invest or trade in Indian stock market, then he must have a demat account in relative bank, after having a demat account anyone can trade in stock market. You can trade or invest in stock market under the rules & regulation declared by SEBI. You can trade with any of the broking firms which are listed in exchanges and get free stock tips from different advisory firms running in the market.

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02. Jun, 2011
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Why Risk on Penny Stocks?

Some people who have not heard of penny stocks before, may assume that penny stocks is a stock investment that literally involves the exchange of pennies, or in other words, cents. Some others who may have heard a bit of information would define it as common stock trading for under $5. While both definitions are still acceptable, we will describe it as “any company trading through the ‘over the counter market.”

“No pain, no gain” is what people expect in this type of business. There is an abundant number of investments one might want to be involved in. Micro cap investing has proved to be one of the most worthwhile enterprises. It has the potential of acquiring big profits in only a matter of time. Penny stocks are unpredictable and it is common for stocks to either move upwards or downwards by 25%. The nature of its uncertainty makes the business very promising and very crucial. So why should you be investing any at all? Answer is quite simple with a bit of philosophy: “the more risks you take the more rewards you are posed to gain”. If you want to play safe, then this is not fit for you.

If you’re asking whether it’s worth investing on penny stocks or not, the answer depends on how you are going to deal with it personally. Sure you may encounter a lot of frustration and pressure but if you are dedicated and persistent enough to learn about how penny stocks behave, then chances are, you may be doubling or tripling your money in a month.

The primary requirement you need to have in order to get started is a brokerage account. Find a reliable brokerage service and have an account opened. Each time you sell or purchase a stock, a small fee is deducted to your account by your broker. Usually, the service will walk you through to how you get started. For starters, it is highly suggested to invest a small amount of money you can afford to lose. Losing the money at stake will not make your business suffer. If you successfully find a winning bid, your investment will grow at a small rate but the experience you gain from there will be a lot.

I can not stress enough the need to be consistent in here. Keep in mind that when you purchase penny stocks, it’s not like dividend investing where you can buy and forget, instead you’ll need to make sure to follow them for the next days, weeks or even months. Speak with the company’s point of contact and check for new products, research as to what product they have advantageous over other stocks you find interest in or simply inspect who their rivals are for information.

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31. May, 2011