A stock market is a place where people buy and sell securities like shares, mutual funds, and systematic monthly investments (SIP) and derivatives like futures contracts, options contracts, swaps, and forward contracts with the assistance of stock brokers or stockbroking firms.
What are NSE and BSE?
The NSE and BSE are stock exchanges through which companies reach investors. Every company must be listed on either the NSE or BSE to reach the investors. BSE stands for Bombay Stock Exchange, and NSE stands for National Stock Market. These are the stock exchange where stocks of listed companies are traded.
NSE
The National Stock Exchange of India is a leading stock exchange in India and plays a vital role in the country’s financial soundness. Recently, NSE ranked 3rd in the world in the equity segment by the number of trades in 2023. It is reported that around 2113 companies are listed on the NSE as of today. NSE is the 7th largest stock exchange in the world, with a total market capitalization of Rs 4.5 trillion as of January 2024.
BSE
The Bombay Stock Exchange of India Limited is the oldest stock exchange in India; it is now synonymous with Dalal Street. The BSE is the world’s 8th largest stock exchange, with a market capitalization exceeding US$4.5 trillion as of January 2024. As of today 5,311 companies are listed in the BSE.
SEBI
The Securities and Exchange Board of India is the regulatory body for the security and commodities markets in the country and the administrative body of the Ministry of Finance within the Government of India.
According to the reports, only 3% of the Indian population is investing in the Indian stock markets, compared to 27% in the United States and 10% in China.
What is market capitalization?
Market cap, or market capitalization, refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. (number of shares * current market price of the share).
All the market investments are subject to market risk, so only you are responsible for any loss in the capital market investment, so invest only after proper research of the company’s fundamental and Technical analysis.