THE STOCK EXCHANGE

What is the stock exchange?

Stock exchange is that place where tradingof share is done in terms of sale andpurchase.

Classification:

Bombay stock exchange (BSE), National stock exchange (NSE), Multi commodity exchange of India ltd.

(MCX).

Bombay stock exchange (BSE):

• The oldest stock exchange in Asia• Established as “The Native Share &Stock

Broker Association” in 1875.• In 1956, the BSE became the first stock

exchange to be recognized by the IndianGovernment under the Securities ContractsRegulation Act.

• BSE has the largest number of listedcompanies in the world.

National stock exchange (NSE):

NSE was set up by leading institutions toprovide a modern, fully automated screenbased trading system.

Incorporated in Nov. 1992 as a tax payingcompany.

National stock exchange (NSE)?

Today NSE, network stretches to more than1500 locations in the country and supportmore than 2,30,000 terminals.

NSE is one of the largest interactive VSATbased stock exchange in the world.

Multi commodity exchange of Indialtd. (MCX)

Multi Commodity Exchange of India Ltd(MCX) is an independent commodityexchange based in India

To facilitate online trading and clearing &settlement operations for commodity futuresacross the country.

Multi commodity exchange of Indialtd. (MCX) MCX hold’s market share of over 80% of the

Indian commodity future market.

MCX is the world largest exchange in Silver,second largest in Gold, Copper and NaturalGas, and third largest in Crude Oil Futures.

The importance of stock exchange:

The stock exchange is a necessary aspect ofcommerce world-wide,

It is true that the flow of new capital soonwould slow to a trickle without it,

The investment-banking business has builtup a highly efficient mechanism for theinitial sale of securities issued by a newenterprise.

Advantages of Investing!

You can choosecompanies in whichyou want to investmoney

Many companiespay a dividend

Opportunity tomake money

You can track yourinvestment growthon the Internet ornewspaper

You can plan yourfuture by investing

Support oureconomy

Disadvantages of Investing!

Not guaranteed tomake a profit

You may lose yourfuture investmentplan

Current events canplay a major role inthe market(September 11,2001, etc)

Companies may lieabout profits andsales to persuadeinvestors (Enron,Martha Stewart,etc)

Investment Websites

http://www.nasdaq.comStock Prices

http://www.nyse.comStock Prices

http://www.younginvestor.comStock Education

http://smg2000.orgThe Stock Market Game

http://nationalsms.comThe National Stock Market Simulation

http://lei.ncee.netLearning, Earning and Investing Site for Text