STOCKS AND SHARES
BASICS ABOUT STOCKS AND SHARES
Stocks and shares are those commodities that are bought by an individual for online trading. There are two types of stock exchanges available in our country. There are
· NSE [National Stock Exchange]
· BSE [Bombay Stock Exchange]
In the above mentioned stock exchanges Bombay Stock Exchange [BSE] is the older one which was established in 1957. National Stock Exchange [NSE] was established in 1994.
ONLINE TRADING:
Internet is the only medium for communicating the buyers and sellers. Orders are communicated to the stock Exchange through websites only.
Internet trading was started in the year around 2000 with minimal members. As the day progressed the number of users keeps on increasing till now.
BSE online trading can be named as BOLT [BSE online trading] and NSE online trading can be named as NEAT [NSE automated electronic trading.]
Many people are interested to trade in NSE rather to trade in BSE.
STOCK EXCHANGE:
It can be defined as a body which controls or guides the individual to buy or sell the commodities.
An individual can trade in both NSE and BSE depending upon his or her willingness. There are many brokerage centers like RELIGARE, INDIA INFOLINE and so on.
If an individual is willing to enter into the share market basically he requires a PAN card issued by the government for India. It means Permanent account number for tax purposes.
There are two ways of trading available. They are
· Intraday trading and
· Long term trading.
Intraday trading is a type of trading for an individual who wishes to trade online regularly or almost daily. He can buy and sell the products or stocks on regular basis depending on the ups and downs of the share market.
Long term trading is a type of trading for an individual who wishes invest on share market and wait for few days until the value of share goes high. If the share value increases then he sells the share. This type of trading is better for individuals who expect little profit for their invested money.
MUTUAL FUNDS:
Mutual Funds are those which collect amount from individuals and invest the same amount in equity shares, government aided services etc...
INDEX:
It indicates how share values are moving in the share market.
SEBI is the Securities and Exchange Board of India is the regulatory authority of our country for protecting the interests rates of the investors and regulating the regulatory markets.
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