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What is stock exchange.?
Let us say you buy shares from the stock market (stock market facilitates you in making your transactions) and sell those shares we can say that there is an exchange taking place where a buyer buys a stock and a seller sells a stock. You can buy and sell shares through a stock market/Secondary market that is linked with the Exchanges, in India we have two main stock Exchanges i.e NSE and BSE where NSE stands for National Stock Exchange and BSE stands Bombay Stock Exchange. Now let us understand what is NSE and BSE in brief,
BSE Bombay Stock Exchange was Asia’s first stock established in 1875 located in Mumbai at present BSE is the 12th largest stock exchange in the world. 5,500 companies are listed under BSE. There are Top 30 companies which are listed in BSE as their financial performance is very good. The companies which are listed under BSE are called the SENSEX index. The top 30 companies i.e the Sensex Idex keep on changing based on their market capitalization.
NSE Stands for the National Stock Exchange and it was established in 1992, located in Mumbai currently NSE is the 10th largest stock exchange of the world. This was India’s first stock exchange where it fully automated screen-based electronic trading system to make trading easier There are 1,600 companies under NSE Both Indian and Non-Indian companies are listed in NSE, NSE deals with several companies but the NIFTY 50 index is nothing but the Top 50 companies are listed under NSE which are most commonly traded and NSE deals with products like capital, derivatives, equity derivatives, debt etc, by the help of brokers, the investor can trade through any stocks which are listed in the exchange.
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