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What is Equity Market, Share Market, or Stock Market in brief?

As we all know that most of the Indian stock market trading takes place on two stock exchanges they are Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been in existence since 1875. The NSE was founded in the year 1992 and started trading in the year 1994.


Stock Market: Now let us know more about a Stock market. The Stock market is all so called as Equity market or Share market and it is the collection of buyers and sellers of stocks. Which helps the buyers to grow their wealth on becoming a shareholder. An investor earns a part of the profits earned by the company and at the same time the investor also undertakes the risk to bear loses. Primary share market: Any company enters the primary market is to raise funds. In this primary market a company gets registered to issue shares to the public and raise money. Companies generally get listed in the Equity exchange through the primary market route. In case a company is selling shares for the first time, it is called an Initial Public Offering (IPO) after which the company becomes public. Secondary share market: Shares issued by the company for the first time are offered to the public in the primary market. Once the IPO is done and the stock is listed and they are traded in the secondary market. In secondary market one purchases shares from other investors who is willing to sell the same shares.

Bombay Stock Exchange (BSE):

The Bombay Stock Exchange(BSE) established in 1875 and it is Asia's oldest stock exchange. BSE is ranking the 10th largest stock exchange in the world. Now BSE is located at Dalal Street, Mumbai, India. Now the group became an official organization as "The Native Share & Stock Brokers Association" in 1875. In 1957 on August 31 the BSE became the 1st stock exchange to be recognized by the Indian Government, under the Securities Contracts Act of Regulation . The BSE is also one of the Partner Exchange of the United Nations Sustainable Stock Exchange initiative, in September 2012. SENSEX: The BSE SENSEX is also known as the S&P Bombay Stock Exchange or Sensitive Index or simply the SENSEX. Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is estimated by multiplying the price of its stock by the number of shares provide by the company. This market capitalization is further multiplied by the free-float factor to estimat the free-float market capitalization. If the base period of Sensex is 1978-79 and then the base value of Sensex is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of Sensex involves the Free-float market capitalization of 30 companies in the Index divided by a number called Index Divisor. The Divisor is the one and only link to the original base period value of the Sensex. It keeps the Index comparable over a time and is the adjustment point for all Index adjustments arising out of a corporate actions, replacement of scrips and few more. During the market hours, prices of the index scrips, at which latest trades are implemented, are used by the trading system for evaluate Sensex for every 15 seconds and circulate in real time. National Stock Exchange of India

National Stock Exchange of India Limited is one of the leading stock exchange in India. The NSE was located in Mumbai, India and was established in the year 1992. National Stock Exchange is the 11th largest stock exchange. Modern and fully automated screen based electronic trading system which provided easy trading facilities to the investors spread over the country was 1st iplemented by NSE . NSE was set up by a group of leading Indian financial institutions by the orders of Indian government to bring transparency to the Indian capital market. NIFTY 50 NIFTY derived from the combination of two words they are “National” and other one is “Fifty”. The NIFTY 50 index is National Stock Exchange of India benchmark board based stock market index for the Indian equity market. NIFTY 50 stands for National Index Fifty, and represents the weighted average of 50 Indian company stocks in 13 sectors. NIFTY is owned and managed by the NSE Indices limited (India Index Services and Products). The base period for the NIFTY 50 index is on 1995 November 3, which marked the completion of one year of operations of NSE's Capital Market Segment. The base value of the index has been set at 1000, and a base capital is set at of Rs 2.06 trillion















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