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What is Share Market

A financial marketplace where people and institutions can purchase and sell shares of publicly traded corporations is the stock market, commonly referred to as the equity market or share market. It gives businesses a way to generate money by selling ownership holdings in the form of shares, and it gives investors a way to buy and sell these shares in hopes of making money off the business’s growth and accomplishments.

Market Capitalization

India climbs to fifth in the world stock market rankings with a value of over $3.31 trillion.

By the end of 2020, the total market value of all publicly traded securities globally increased from US$2.5 trillion to US$93.7 trillion.[1]

There are 60 stock exchanges in the world as of 2016. 16 of these exchanges, which together make up 87% of the world’s market capitalisation, have a market value of $1 trillion or more. These 16 exchanges, with the exception of the Australian Securities Exchange, are all located in North America, Europe, or Asia.[2]

As of January 2022, the United States of America had the largest stock markets globally, followed by Japan (approximately 6.2%) and the United Kingdom (about 3.9%).

India’s stock market in its entirety

History

  1. A large banyan tree in Mumbai’s Town Hall neighborhood provided shade for the trading floor when the Indian stock market first began in the late 18th century. A small group of people would gather here to conduct informal cotton trades.
  2. This was due to Mumbai’s active trading port and the frequent trading of necessary commodities there.
  3. Following the introduction of the Companies Act in 1850, investors began expressing interest in company securities. Around this time, the idea of limited liability also emerged.
  4. ‘The Native Share and Stock Brokers Association’ was established by 1875. This was the BSE’s precursor.
  5. The Ahmedabad Stock Exchange was established in 1894 largely to facilitate trading in the city’s textile mill shares.
  6. The Madras Stock Exchange began to take shape around 1920.
  7. The Securities Contracts Regulation Act was originally adopted by the Indian government in 1957, and the BSE was the first stock exchange to receive this recognition.
  8. To ensure market transparency, the NSE was established in 1992 as the first demutualized electronic exchange.
  9. The BSE transitioned from an open-floor trading system to an electronic trading system in 1995.
  10. To improve the oversight of the commodities market, encourage local and international institutional participation, and introduce new products, SEBI and the Forward Markets Commission (FMC) amalgamated in 2015.

National level Stock Exchange

  • Bombay Stock Exchange(BSE)
  • National Stock Exchange(NSE)

Bombay Stock Exchange (BSE)

One of India’s major stock exchanges, the BSE (Bombay Stock Exchange), is situated in Mumbai, the nation’s financial hub. The BSE, one of the oldest stock exchanges in Asia, was founded in 1875 and has had a significant impact on the growth of India’s financial markets.

National Stock Exchange (NSE)

One of the important stock markets in India is the NSE (National Stock Exchange), which has its headquarters in Mumbai. The NSE is a relatively new exchange that was founded in 1992, but it has risen quickly to become one of the biggest and most important stock exchanges in the country.

NSE v/s BSE Differences

Comparison frameworkNational Stock Exchange (NSE)Bombay Stock Exchange (BSE)
Websitehttps://www.nseindia.com/https://www.bseindia.com/
Founded in19921875
Aggregate listed company2113(as of dec 2022)Over 5264
Market capitalizationUS$3.27 trillion (Jan 2023)₹301 trillion (3.8 trillion US dollars) (July 2023)
Network(trading terminal)over 1500 cities419 cities
LiquidityNSE has higher liquidity as they trade more volume compared to BSEBSE has comparatively lower liquidity than NSe
Basic comparison

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Know more about share market

Read more: Share Market : Make your money work for you

FAQ’s

How many National Stock exchanges are there in India?

In India, there are 23 stock exchanges. Two of them, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), are national stock exchanges. Regional Stock Exchanges (RSEs) are the remaining 21.

Who is a broker?

A broker is a participant in a stock exchange who is authorized to transact in equities there. Broker is a registered SEBI member and a member of the exchange.

What is Future and Option?

Buying or selling an underlying stock or other assets at a predetermined price on a specified date is the subject of a futures contract. In contrast, an option contract allows the investor the chance to buy or sell the assets at a certain price on a specific date, known as the expiry date, without placing any responsibility on them to do so.

It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”

Warren Buffett

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