BSE And NSE Full Form

The full form of NSE is the National Stock Exchange of India Limited and the full form of BSE is the Bombay Stock Exchange. Stocks are one's ways of investing for an individual or an institution. They get the benefits of investment in the long term based on the performance of the company. Buying a share gives you ownership of part of the company. When money is involved there is a need for guaranteed investments. This is done by listing the companies on the stock exchange. Stock exchanges check the companies listed and give the necessary data to the public for investment. It creates a bridge between investors and companies.

What Is A Stock Exchange?

A company divides its parts into shares which are then placed in the market for buying. This way company raises its money. The buyers of the shares become the owner of that part. Stock Exchange is a place for trading these shares. If a company wants to sell its shares, they register with the stock market. From here broker helps to buy or sell the Shares. As the company earns a profit, shareholders get the dividend on a year-to-year basis. Stock Exchange also evaluates the price of the shares. NSE and BSE are the major stock exchanges of India.

Few Terminologies Related To The Stock

• Index

The index is a way of knowing the performance of the stock. It is a statistical tool that gives us information about the changes in the market. For comparison, it groups the shares based on certain criteria like size, type, and market capitalization. The changes in the share change the index.

• Portfolio

The portfolio is a collection of investments of an investor. It consists of all types of investments like shares and bonds.

• Broker

A broker is a person who trades the shares on the behalf of the investors.

• Bear Market

The period for which the value of shares falls is called a Bear Market.

• Bull Market

When the prices of the shares is increasing that period is called a bull market

• Derivatives

Derivatives are financial instruments that derive their value from the underlying assets. The two examples of the derivative are future and options.

• Futures

This is the financial contract which has some fixed date and price. The assets can be traded on a particular date.

• Options

Options are the financial contract that gives the right to sell the assets on a predetermined date but there is no obligation to trade the assets.

NSE - National Stock Exchange Of India Limited

NSE is a leading stock exchange owned by various financial institutes of local as well as the global level and public or private entities. It is one of the first markets for electronic trading. The market was first established in 1994 and is located in Mumbai. NSE aims to create a transparent market. By August 2021, NSE became the world's 9th largest stock exchange. The index used by NSE is NIFTY 50. NIFTY 50 is a benchmark index that consists of a weighted average of 50 of the largest companies. NSE allows anyone to handle the trade of the shares given they are experienced and meet the financial requirement.

History Of NSE

1. NSE was formed in 1992 with the motive of providing transparency in the Indian market. It started working as a tax company.
2. In 1993 it was recognized as a stock exchange.
3. NSE started working as a wholesale debt market in June 1994
4. It started operation in the derivative segment in June 2000.
5. By now it's trading equity, debt, currency derivative, and many more

BSE- Bombay Stock Exchange

BSE is a stock exchange established in 1875 and located in Dalal sheet in Mumbai. The owner of the BSE is the Ministry Of Finance and the Government Of India. BSE is one of the oldest stock exchanges in the world. By January 2022, it became the 8th largest Stock Exchange. The overall market capitalization of BSE is Rupees 276.714 lakh crore by Jan 2022.

History Of BSE

1. BSE was started in 1875.
2. BSE was the first stock exchange recognized by the Indian Government on 31 August 1957.
3. BSE Sensex which is an index was developed in 1986. It gives information about the performance of BSE.
4. In 2000 BSE entered equity derivatives and futures trading contracts.
5. In 1995 BSE started electronic trading.
6. BSE is the first stock exchange to introduce a centralized internet trading system.
7. The first stock exchange which introduced a centralized internet trading system that allows investors from all parts of the world to trade using BSE.

Benefits Of Listing In The Stock Exchange

• The data on the company's performance is available to investors. This can prove to be an invitation for investors ready for investment.
• The stock exchange provides complete transparency which is beneficial for both investors and companies.
• Listing in BSE and NSE provides. recognition to the companies and removes fraud. This creates trust between the companies and investors.
• The data about the revenue, dividend, and bonus is published which creates transparency.
• The real values of the shares are decided based on the demand and supply pattern.
• The securities listed in NSE and BSE can serve as collateral for the loan.