Essay About The Stock Market

INDUSTRY PROFILE:

Stock markets refer to a market place where investors can buy and sell stocks. The price at which each buying and selling transactions takes place is determined by the market forces (i.e. Demand and supply for a particular stock).A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion USD at the beginning of October 2008.The stock market is one of the most important sources for companies to raise money. This allows businesses to trade publicly, or raise additional capital for expansion by selling shares of ownership of the company in a public market. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa.

They also collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could default on the transaction. So, one also understands about Stock Exchanges as follows.

Stock exchange:

A stock exchange is an entity which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends.

List of Stock Exchanges in India

• National Stock Exchange(NSE)

• Bombay Stock