The stock exchange is an area where securities like that of shares and bonds get traded among investors or traders, for raising pennies. The trade takes place with or without the assistance of brokers or agents. It is an organized as well as a regulated marketplace where financial activities like buying, selling, and issuing of shares take place. The stock exchange allows the companies to raise pennies.
The organizations or investors who are looking forward to invest can make key decisions with the aid of real-time pricing information offered by the stock exchange. But the companies that get listed need to follow specific rules and regulations of the regulating bodies in case they are planning to raise capital. The stock exchange plays a crucial role in forming the economy of the nation, as it is a platform for selling derivatives as well as security debts.
BSE(Even known as Bombay Stock Exchange) and NSE (or National Stock Exchange) are the two prime stock exchanges in India. You might have heard or come across BSE and national stock exchange at some point in your life. Some of you may even know that these are somehow linked to shares or bonds. However, most of you may not know the difference between the two.
What is National Stock Exchange?
National Stock Exchange was founded in the year 1992 and is moderately the youngest stock exchange in India. But it derived its recognition as a stock exchange only in the year 1993. These actually pioneered the trading industry by coming up with fully automated, electronic, and that of screen-based trading in the country. These have offered a secure platform for trading shares as well as bonds, electronically, since the year 1995. The electronic trading system assisted in removing the paper-based settlement system from that of trading.
National stock exchange launched their standard index-Nifty 50 during the years of 1995-96. Nifty got introduced in April 1996 that actually tracks the fifty most highly liquid as well as continuous trading Indian companies that are listed on NSE. You are going to have a clear idea of the Stock market and the economic trends in case you have a track of Nifty 50. Being an investor, you can choose the best stocks to invest in. These even provide assistance to companies for raising overall capital.
What is Bombay Stock Exchange?
Bombay Stock Exchange is the eldest stock exchange, not simply in India but even in Asia. This is was combined in the year 1875 and since then they are providing high-speed trading instruments such as debt instruments equity, mutual funds, currencies, and derivatives. The Institution was originated by Premchand Roychand and it was then known as or called The Native Share & even Stock Brokers Association, that later on turned out to be BSE.
Only in the year of 1957, BSE got its credit as a premier stock exchange from the Central Government of India. SENSEX as well as Sensitive Index is the standard index of BSE and it is the foremost equity index in the nation.
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