The stock market may seem a lot for someone who has been just introduced to the world of trading. But knowing every aspect of the trade may ease your initiation to the market.
What is a stock market?
It is a financial institution where licensed brokers meet to sell or buy company bonds, shares securities etc. It is a form of investment where you can constantly sell or buy shares. The stock market is extremely dynamic; it means the stocks that are performing extremely well today may be in losses tomorrow. Such predictions can only be made by people who have been trading for a while and can predict markets.
Market predictions are also not just done merely looking at stock prices and demands. A proper calculation method called the put-call ratio is used to make such predictions. Based on the calculation done by the put-call ratio, traders predict if the market is strong or weak.
The Indian Share Market is one of the oldest and respected stock exchange in the world. The Indian stock market has two trading institutions – The Bombay Stock Exchange and National Stock Exchange. These two are the establish and prominent institutions out of the twenty-one in the country. There are many things that we may not know before we start, let’s discuss a few things that we may not have known about the stock market:
Transaction Speed – Every transaction that takes place in the National Stock Exchange or NSE is done in 2 milliseconds. The BSE can execute 5 lakh orders in a second and has a response time of 200 microseconds.
Investors – Based on the data given by the National Securities Depository Limited, the total number of investor accounts that are there in the stock market are 1.45 crores. However, very few accounts remain active. When it comes to investing, Foreign Institutional investors are the biggest in the Indian Stock Market. They are closely followed by insurance companies and mutual funds.
Stock Volume – On a daily basis, the equity cash turnover of the National Stock Exchange is approximately 3 billion dollars. The similar turnover for Bombay Stock Exchange is half a billion dollars.
Broking – Most of the shares that comprise nearly 70% of it, is done by the top 100 brokers in the country.
Total Number of Stock Exchange – Apart from the famous National Stock Exchange and Bombay Stock Exchange, there 17 other stock exchange institutions in India. Out of the 17, 7 are permanent, and 10 have to get their license renewed.
Market Value – Bombay Stock Exchange ranks 7th, and National Stock Exchange ranks 8th in the world market capitalization. The net worth of share trading in National Stock Exchange is Rupees 3,828,418.31 (2016 figure), and NSE leads in the turnover amongst the three main stock exchanges – BSE, NSE and MCX-SX.
These are interesting statistics about the Indian Stock Market; we hope these figures will drive you more to take active participation in trading and investing more in stock share.