Stock Market Trading In India

A stock exchange is an entity which provides "trading" facilities for stock brokers and traders

, to trade stocks and other securities. Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order.

Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where traders may enter "verbal" bids and offers simultaneously. The other type of stock exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders.

The trading on Stock market trading in India used to take place through open outcry without use of Information Technology for immediate matching/recording of trades. This was time consuming & inefficient, this imposed limits on trading volumes & efficiency.

In order to provide efficiency, liquidity & transparency, NSE introduced a nationwide online fully automated Screen Based Trading System(SBTS) where a member can punch into the computer quantities of securities & prices at which he likes to transact & the transaction is executed as soon as it finds a matching sale or buy order from a counter party.

The stock market trading is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate.

by: Asit C. Mehta

POST COMMENT

Tips And Techniques For Marketing An Ecommerce Website How To Grind Out a Profit With The Best Roulette Strategies What is seo marketing ? Affiliate Marketing Management Tips and Techniques Volkswagen to raise Indian market share to 20% by 2018 Make Money with Storage Auctions and Flea Markets Selecting an Affiliate Marketing Management Service PC Tattletale Review - Scam or Genuine? Many Pharmaceutical Companies Continue To Market Products In Capsule Form 10 Principles of Trustcasting in the Web Marketing Universe SEO- Key to Effective Adult Website Marketing All Successful Entrepreneurs Use Booth Rentals At Trade Shows To Market Their Products Viral Marketing in Social Media