Understanding The Stock Market In India
Posted on March 20, 2008 - Filed Under Education, Finance
Stocks and shares are a method to raise funds by making the general public as investors. These funds are used either by the government or private companies for improving or expanding their business operations. In return, the entire profit of the company is shared in between the investors who had invested their money in the company by buying shares.
Stock markets in India operate under the guidelines of Securities and Exchange Board of India, also known as SEBI. SEBI has been empowered with the duty of protecting the rights of investors and also ensuring the promotion and legislation of the capital market. Stock markets provide employment opportunities to several qualified professionals like economists, industry specialists, financial analysts, financial planners, capital market specialists, brokers and chartered accountants.
The Indian stock market is primarily divided into primary and secondary markets. In the primary market, companies issue their shares directly to the public. Transactions are made by share brokers appointed by the company in return for a brokerage. In the secondary market, share brokers representing different brokerage firms trade stocks of different companies that are listed on the stock exchange on behalf of customers and earn their brokerage
The stock market in India has been off late influenced heavily by multinational companies. With the liberalization of economy, several major players in the international market have started their operations in India. Due to this, there is a tremendous increase in the stock trading volume. Stock exchanges have also adapted themselves in an equally effective way to handle this volume. So as to ensure an effective and transparent trading practice, stock exchanges are now using automated screen-trading facilities. Stock exchange brokers have now dealing in millions of Indian rupees using computerized operations.
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Tags: Funds, investment, money, property, Stock Market
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