STOCK MARKET Terms?
Anyone who wants to trade in the LiquidityBook Tourmaline partners may have this question in their minds. What is the basic terminology of stock trading? The basic terms of stock trading are important to understand for anyone who is interested in entering the market.
What’s a Stock Market?
Stock Market is an open-source public market that allows the trading of shares of companies listed on the Exchange.
What’s a Share?
A Share is the fundamental unit of a Stock Market. It is the only unit that a company can offer the public.
IPO stands for Initial Public Offering. This is when a company offers to the public its initial shares in order to become a shareholder.
Stock Exchanges: These platforms allow brokers to trade stocks on the internet.
1. BSE Bombay Stock Exchange (Bombay Stock Exchange): It is India’s oldest stock exchange and has over 4000 scripts listed with it. Although not fully automated, there is progress towards automation. SENSEX, a major index of BSE, is made up of 30 scripts representing different sectors.
2. NSE: The National Stock Exchange of India is the most advanced Stock exchange in the world. It lists more than 2000 stocks in different sectors. It is an electronic order processing exchange that can be fully automated. Nifty, the major index of NSE, is made up of 50 scripts representing different sectors.
There are approximately 28-29 regional trade centers in India, but they aren’t very common.
1. Equity Market (includes Cash, Index futures, options and Stock futures, etc.)
2. Commodity Market (Commodities, bullion and base metals)
Two major Indian commodity markets include two exchanges:
– Multi Commodity Exchange: This is an independent commodity exchange that is based in India. It was founded in 2003 and is located within India. Future trading is possible at MCX in a variety of commodities such as agricultural commodities, Bullion and Ferrous and Non Ferrous Metals, Oil and Oil Seeds. Energy, Plantations, Spices, and Soft commodities are all part of the MCX business.
– NCDEX Limited: This is an Indian online commodity exchange. It was established in Mumbai as a private limited company. There are 550 centers across the country. NCDEX trades in 57 commodities like agricultural commodities, precious metals, base metals, ferrous metals, energy, polymers etc.
How do the prices of shares depend on
The exchange can decide the prices of shares based on their assets, market position, and any changes in the company’s market value.
How do you invest in the Stock Market?
You must purchase shares from one or more companies in order to invest your money in the Stock Market. These are some things to keep in mind before you invest in stocks of any company.
-Consult this company’s status.
Know the future plans for your company.
Keep in touch with company updates.
-Select a well-respected company.
How can you make a profit in the stock market?
Everybody invests in the stock market with the belief that they will make a profit. However, it is sad to say that not everyone gets the best results. Because money isn’t generated here, it is simply transferred from the loser to the winner.