Basics of Stock Market
Basics of Stock Market
Basics of Stock Market
MARKET
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WHAT IS INVESTMENT???
The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future.
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REASONS
To meet the cost of inflation. The aim of investment is to provide a return above the inflation rate to ensure that the investment does not decrease in value. Tip: By investing early you allow your investments more time to grow.
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1)Invest early.
2)Invest regularly. 3)Invest for long term and not short term.
INTEREST
When we borrow money ,we are expected to pay for using it- this is known as interest. Interest is an is an amount charged to the borrower for the privilege of using the Lenders money. Factors determining interest rates: Demand for money. Level of Government borrowings. Supply of money. Inflation rate. The RBI and the Government policies which determine some of the variables.
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OPTIONS
1. Physical Assets
2. Financial Assets
STOCK EXCHANGE
The Securities Contract (Regulation) Act, 1956 defines Stock Exchange as any body of individuals,constituted for the purpose of assisting, regulating or controlling the business of buying,selling or dealing in securities. Stock Exchange could be a regional stock exchange whose area of operation is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading. NSE was incorporated as a national stock exchange
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EQUITY/SHARE
Total equity capital of a company is divided into equal units of small denominations, each called a share. The holders of such shares are members of the company and have voting rights.
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INDEX
SENSEX
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NIFTY
Nifty is an indicator of all the major companies of NSE. The Nifty index is a composite of the top 50 stocks listed on the National stock exchange. It is a simplified tool which helps investors &ordinary people alike, understand what happens in the stock market & by extension, the economy.
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Bombay Stock Exchange, is the 10th largest stock exchanges in the world by market capitalization.
The companies listed on BSE Ltd command a total market capitalization of USD Trillion 1.2 as of October 31, 2012.
BSE is the first exchange in India and second in the world to obtain an ISO certification.
BSEs popular equity index - the SENSEX - is India's most widely tracked stock market benchmark index.
A regional stock exchange founded in 1885 as the Cincinnati Stock Exchange. In 1980 the exchange closed its trading floor and became the first all-electronic stock exchange and subsequently moved its operations to Chicago. In 2003, it changed its name to the National Stock Exchange. It has more than 2000 stocks from different sectors listed with it.
The NSE was established with the main objectives of establishing a nationwide trading facility for equities, debt instruments and hybrids.
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The economy and the stock market are closely related. The stock markets reflect the buoyancy of the economy.
The whole of Asia would be hit by a recession as it depends on the US economy. The US economy accounts for 30 per cent of the world's GDP.
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