Well it is a common notion that when
a company has completed their initial public offering, the shares of the same
become public and hence the can be traded in stock market. Stock markets are
known to be destinations where the buyers and the sellers of the stocks meet up
to decide the price on which the shares will be traded. Some mercantilism are natural
locations, where the dealings are usually carried out on an exchange ground.
However, most of the stock trading’s
are virtual. These consist of wide network of computers and internet,mostly to
make dealings easier. One advantage is that dealing data can be recorded
electronically.Those who trade in stocks or keep a close watch on these topics
very well know that, the share markets are basically secondary markets. Here
the pre existing owners of the stocks directly deal with the prospective purchasers. It
is however of specific importance, that the corporations who are named on the
list of the share markets, do not actually buy or sell their own portion of
stocks, on a mundane basis. It is the companies who actually engaged in the
stock exchange or even provide new portion of shares.However this generally
takes place outside the business networking. Lowest Brokerage Charges as
expected from the discount brokers who offer a lower charge then the full service
brokers. They provide a minimum of trading facility with the lower cost of
brokerage.
Well now it must be clear to you that
whenever you buy a component of share from the stock market, you are actually
buying it from another existing shareholder, and not from the company directly.In
a similar manner when you are selling those shares that you possess, you are
not selling them directly back to the company. On the contrary you are actually
selling them to other investors. The early stock exchanges are mainly some bond
exchanges because those few companies actually did not grant any equity. The were
in fact some of the earliest corporations who were basically considered as some
semi public organizations; mostly because they had to be undertaken by the
government, so that they can perform business. The first stock markets had
appeared in around the 16th and 17th centuries, in Europe, along the port city
areas and trading hubs like Amsterdam London etc.
Talking about trading in India the Securities
and Exchange Board of India abbreviated as SEBI is in the sole charge of the
responsibilities, supervision regulation and development of the share markets
in India. This was formed in 1992 as an independent organization. From then on wards,
the Securities and Exchange Board of India is consistently trying to lay down
the market rules in alignment with the best possible market practices. In case
of schism,they will enjoy immense powers of enforcing chastisement on the
participants of the market.
Sensex and Nifty are the two most
popular and prominent Indian share market index, of which Sensex is the oldest
for the equities.It includes a share of 30 firms as enlisted on the Bombay
Stock Exchange or BSE.
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