. . Functions of. Stock Exchange. In India. Ranjani.S B Com(CS) A- II year Reg.No.: 2013441042060.
. . Meaning. A stock exchange, securities exchange, or bourse is a facility where stockbrokers and traders can buy and sell securities, such as shares of stock and bonds and other financial instruments. Stock exchanges.
. . Deﬁnition. A stock exchange is a centralised location where the shares.
. . Investment Methods. Investors can invest in a stock exchange of India through these two ways :.
. . Speculator Types Individuals who are classified as "bulls" means they are expecting the price to increase in value. Bulls Bears are the opposite of bulls when it comes to speculation and financial markets in general. Bears You don't want to be considered a lame duck as a speculator. Lame Duck Stags are a different type of speculator in which they expect to profit on very short-term price changes. Stag.
. . Major stock exchanges. in India. ● Bombay Stock Exchange of india Ltd (BSE).
. . National Stock Exchange (NSE):. The NSE was established in 1992 in Mumbai and is accredited as the pioneer among the demutualised electronic stock exchange markets in India. This stock exchange.
. . Securities Exchange Board of India (SEBI):. SEBI is the regulator of stock markets in India. It ensures that securities markets in India work efﬁciently, and transparently. It also protects the interests of all the participants and none gets any undue advantages..
. . Functions of stock exchange. 1. Economic Barometer.
. . 1. Economic Barometer:. A stock exchange is a reliable barometer to measure the economic condition of a.
. . 2. Pricing of Securities:. The stock market helps to value the securities on the basis of demand and supply factors. The securities of proﬁtable and growth oriented companies are valued higher as there is more demand or such securities. The valuation of securities is.
. . 3. Safety of Transactions:. In stock market only the listed securities are traded and stock exchange authorities include the companies names in the trade list only after verifying the soundness of company. The companies which are listed they also have to operate within the strict.
. . 4. Contributes to Economic Growth:. In stock exchange securities of various companies are bought and sold. This process.
. . 5. Spreading of Equity Cult:. Stock exchange encourages people to invest in ownership securities by regulating.
. . 6. Providing Scope for Speculation:. To ensure liquidity and demand of supply of securities the stock exchange permits.
. . 7. Liquidity:. The main function of stock market is to provide ready market for sale and purchase of securities. The presence of stock exchange market gives assurance to investors.
. . 8. Better Allocation of Capital:. The shares of proﬁt making companies are quoted at higher prices and are actively.
. . 9. Promotes the Habits of Savings and Investment:.
. . Demat account. A demat account is an account to hold ﬁnancial.