The Indian stock market rose out of a need to strengthen the economy of the country and create a space for the mobilization and allocation of savings and for bringing the investor and the entrepreneur together. Today, the Indian stock market lists the largest number of companies, second only to the United States of America. The market has become increasingly important in the global financial sphere - drawing the interest of an increasing number of international investors. The Indian Stock Market has opened itself up to international investors and with the relative ease that has come into dealing in the stock-exchange today, with the advent of the electronic age, more and more investors are pouring their savings into the Indian stock market, discouraged by the low returns from bank deposits. Altogether, the Indian Stock Market is growing at a steady rate and has come a long way since its relatively humble beginnings in 1875.
The Bombay Stock-Exchange is the first stock-exchange company that was started in India in 1875 as the Native Share and Stock Broker's Association. It started out with a membership count of 318 people and gained permanent recognition from the Government of India only in 1965. Another important Stock-Exchange is the National Stock-Exchange of India; Bombay Stock-Exchange and National Stock-Exchange account for 80% of the trade; besides these two there are twenty-two regional stock-exchanges so far.
The Sensex or sensitive index was first compiled by Bombay Stock-Exchange in 1986, based on the financial performance of thirty benchmark companies. National Stock Exchange's sensitive index, less widely followed than the Bombay Stock Exchange index, comprises of fifty stocks.
Both these exchanges run an automated trading system; Bombay Stock Exchange's trading system is called BSE online Trading or BOLT, whereas National Stock Exchange's trading system is known as National Exchange Automated Trading or NEAT.
The financial market is essentially divided into the money market and the capital market. The securities market uses securities as the commodity to deal with exchanges in financial capital. This market can be further divided into the primary market and the secondary market. The primary market deals with the first trading of newly listed shares whereas the secondary market trades these securities after the first offering.
The Stock Exchange the control of buying, selling and dealing with securities, which includes stocks, shares, bonds, debenture stocks, scrip and government securities.
Before the automated trading systems came about, Bombay Stock Exchange employed an ancient method of trading where stock brokers would assemble in the Bombay Stock Market building and trading was carried forward using a communication system that comprised of a lot of raised voices, shouting and sign language. This system was abused and misused by the brokers - investors were not allowed within this system.
In 1992, the Indian stock market was tainted with a giant fraud - Harshad Mehta was discovered to have diverted huge amounts of money from banks and played with the shares of ninety or so companies. The National Stock Exchange came up soon after this scam, and began its automated trading system. Bombay Stock Exchange gave up its ancient trading systems and followed suit soon after.
For information about finding and comparing the best online Stock Brokers, visit http://www.yourbrokerguide.com
Article Source: http://EzineArticles.com/?expert=Jeff_C_Daniels
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The Truth About Online Stock Trading
In the old days, stock trading was difficult and generally out of reach of the little guys. You had to secure a broker and generally needed a pretty large initial investment to get into the market. The internet has changed all of that. These days, even if you only have a few dollars to invest, you can do so easily from the comfort of your living room sofa.
Besides a little money, the only thing you need is a computer and an internet connection. These days, with the prevalence of smartphones, you don't even need that. There are numerous online brokerage services offering everything from premium analysis and personalized investment advice to discount brokerages that do nothing more than purchase the stock for you. Most beginners choose the latter type and are usually quite satisfied.
These days, many banks offer their customers greatly discounted online investing. Each trade can sometimes be made for as little as two or three dollars. Often, for a small fee they allow unlimited trading. If your bank offers this service, it's a great and simple way to get started trading online.
The internet is full of free information regarding trading. Many financial sites such as Morningstar.com allow you to set up a pretend portfolio to practice the ins and out of the stock market game. They also offer free lessons on everything imaginable relating to investing. If you are serious about investing, you would be a fool not to take advantage of what these sites have to offer.
You should begin by learning some of the key phrases used in trading and the basics of how the stock market works. This is really all you need to get started, though investing is a process of continuing education. Fortunately you will never exhaust the supply of information you find online.
When it comes to online trading, the more frequently you make transactions, the less you pay for each transaction. Basically you are being offered a bulk discount. For the basic trader, it's usually cheaper to pay the broker fees as you go, since you will likely only make a few transactions a month or less.
Some online services charge a fee for inactivity. Though this is becoming rarer, you should check to insure that you aren't being charged for doing nothing. If this is the case and you like to hold onto your stocks for longer periods, you should find a service that doesn't charge for this. The internet is very competitive and there are plenty of brokerages that don't try to hit you with such fees.
When you begin online trading, it's easy to become excited, especially if you are making money. Keep your emotions under control and remember that you are using real money and it can go just as easily as it comes. Online trading should not be a gamble, but rather a convenient way to make informed investments. Do your homework and make all your decisions based off carefully thought out facts and you should be fine.
Todd Fletcher has been involved in financial analysis since 2007. Visit Ratelines.com for more of his advice on money markets.
Article Source: http://EzineArticles.com/?expert=Todd_Fletcher
Besides a little money, the only thing you need is a computer and an internet connection. These days, with the prevalence of smartphones, you don't even need that. There are numerous online brokerage services offering everything from premium analysis and personalized investment advice to discount brokerages that do nothing more than purchase the stock for you. Most beginners choose the latter type and are usually quite satisfied.
These days, many banks offer their customers greatly discounted online investing. Each trade can sometimes be made for as little as two or three dollars. Often, for a small fee they allow unlimited trading. If your bank offers this service, it's a great and simple way to get started trading online.
The internet is full of free information regarding trading. Many financial sites such as Morningstar.com allow you to set up a pretend portfolio to practice the ins and out of the stock market game. They also offer free lessons on everything imaginable relating to investing. If you are serious about investing, you would be a fool not to take advantage of what these sites have to offer.
You should begin by learning some of the key phrases used in trading and the basics of how the stock market works. This is really all you need to get started, though investing is a process of continuing education. Fortunately you will never exhaust the supply of information you find online.
When it comes to online trading, the more frequently you make transactions, the less you pay for each transaction. Basically you are being offered a bulk discount. For the basic trader, it's usually cheaper to pay the broker fees as you go, since you will likely only make a few transactions a month or less.
Some online services charge a fee for inactivity. Though this is becoming rarer, you should check to insure that you aren't being charged for doing nothing. If this is the case and you like to hold onto your stocks for longer periods, you should find a service that doesn't charge for this. The internet is very competitive and there are plenty of brokerages that don't try to hit you with such fees.
When you begin online trading, it's easy to become excited, especially if you are making money. Keep your emotions under control and remember that you are using real money and it can go just as easily as it comes. Online trading should not be a gamble, but rather a convenient way to make informed investments. Do your homework and make all your decisions based off carefully thought out facts and you should be fine.
Todd Fletcher has been involved in financial analysis since 2007. Visit Ratelines.com for more of his advice on money markets.
Article Source: http://EzineArticles.com/?expert=Todd_Fletcher
How to Choose the Right Stocks - Research Before Buying
Stock markets, regardless of whether in the bull or bear phase, are always flooded with hot tips, buzzing stocks, and stock picks from different sources such as business news channels, websites, astrologers, friends, colleagues and other mass media sources. You must be one of the millions who are daily bombarded with SMS and Emails from known and unknown parties recommending you various stock investment ideas and wealth creation strategies.
Millions of people in this world have lost their hard-earned money in their passion to make quick bucks. Retail investors or small investors and the beginners are more likely to fall prey to hot tips and buzzing stocks. You could also be one of the millions who have wiped out their capitals by investing in stocks based on heard-on-the-street tips and multi-bagger ideas.
Investment in stocks demands sufficient research and disciplined approach. If you want to create wealth by investments in stocks, you should do proper homework before you buy any stocks. However, as a small investor, you might find it a daunting task to do an extensive research about the quality of management and the plans of the companies. Well, in the world of Internet, it has become extremely easy carry out your own research and check out the fundamentals of the stock. Here are few easy ways with which you can do your own research and choose the right stocks.
1. Check out the website of the company to know about its products, business models, management, and financial performance, past history, future growth, and latest announcements.
2. Keep an eye on the websites of Mutual Funds and large brokerage houses that publish the research reports of various companies after doing an in-house research on specific companies and sectors. Most of the research reports are generally accessible on the websites of large financial institutions and stock trading companies.
3. Check out the key performance indicators such as increase in revenues, increase in profits, return on equity, return on capital, dividend history, EPS (earning per share), current PE (price to earning) Ratio, industry PE, Price to Book Value Ratio etc. Compare all these indicators vis-a-vis the past quarters and years and with the numbers of industry peers. Most of the information is easily available on the websites of stock exchanges and companies.
4. As far as possible, you should stick to large cap companies. Due to the sheer size of the market capitalization, the risk of manipulative trading is minimal in large cap companies. However, if you intend to invest in small-cap companies, you must do sufficient homework about the background of the companies.
5. You may attend the AGM (Annual General Meetings) of the companies so that you can get the chance to talk to the management about the plans and clarify any individual doubts.
In the End:
If you want to protect your capital and create wealth, you should choose the right stocks and not bet anything and everything that comes your way. Depending upon the time horizon, you should have your own trading strategies in place before you buy stocks.
The Author is a Techno-Commercial Consultant and Freelance Content Writer. Get more info on Financial Awareness Portal
Also visit Financial Training
Article Source: http://EzineArticles.com/?expert=Dhrupad_Buch
Millions of people in this world have lost their hard-earned money in their passion to make quick bucks. Retail investors or small investors and the beginners are more likely to fall prey to hot tips and buzzing stocks. You could also be one of the millions who have wiped out their capitals by investing in stocks based on heard-on-the-street tips and multi-bagger ideas.
Investment in stocks demands sufficient research and disciplined approach. If you want to create wealth by investments in stocks, you should do proper homework before you buy any stocks. However, as a small investor, you might find it a daunting task to do an extensive research about the quality of management and the plans of the companies. Well, in the world of Internet, it has become extremely easy carry out your own research and check out the fundamentals of the stock. Here are few easy ways with which you can do your own research and choose the right stocks.
1. Check out the website of the company to know about its products, business models, management, and financial performance, past history, future growth, and latest announcements.
2. Keep an eye on the websites of Mutual Funds and large brokerage houses that publish the research reports of various companies after doing an in-house research on specific companies and sectors. Most of the research reports are generally accessible on the websites of large financial institutions and stock trading companies.
3. Check out the key performance indicators such as increase in revenues, increase in profits, return on equity, return on capital, dividend history, EPS (earning per share), current PE (price to earning) Ratio, industry PE, Price to Book Value Ratio etc. Compare all these indicators vis-a-vis the past quarters and years and with the numbers of industry peers. Most of the information is easily available on the websites of stock exchanges and companies.
4. As far as possible, you should stick to large cap companies. Due to the sheer size of the market capitalization, the risk of manipulative trading is minimal in large cap companies. However, if you intend to invest in small-cap companies, you must do sufficient homework about the background of the companies.
5. You may attend the AGM (Annual General Meetings) of the companies so that you can get the chance to talk to the management about the plans and clarify any individual doubts.
In the End:
If you want to protect your capital and create wealth, you should choose the right stocks and not bet anything and everything that comes your way. Depending upon the time horizon, you should have your own trading strategies in place before you buy stocks.
The Author is a Techno-Commercial Consultant and Freelance Content Writer. Get more info on Financial Awareness Portal
Also visit Financial Training
Article Source: http://EzineArticles.com/?expert=Dhrupad_Buch
The Top 10 Questions People Have About Stock Trading
At some point in time people often begin to wonder about the stock market. Is it risky? Is it a good place to invest? Is it right for me? Can I do it? How do I start?
I did a simple search on the internet for questions relating to "stock trading" and compiled the top 10 questions that people had when it came to trading stocks.
1. What is the best online company for trading stocks?
By far and away the most common questions I found (almost a third of them) were concerned with finding the best online stock trading company. This appears to be one of the most common stumbling blocks to getting started trading stocks online.
2. How can I learn about and get started trading stocks?
The next most popular questions were on how one gets started trading stocks. Where can you learn what you need to know, and what do you need to do to get started?
3. What are the definitions or meanings of common stock market trading terms?
More than a few questions centered on finding the definitions of common stock market trading terms. Some examples include: portfolio, volume, forex and options trading.
4. What is the best stock trading software out there?
The next most popular questions on people's minds related to finding good software to assist them in finding reliable trading signals and setting up trades.
5. What is the best virtual stock trading platform?
Next, we had a group of questions relating to virtual or simulated stock trading? Apparently, new traders want to test the waters before making a capital investment. Not a bad idea.
6. What are the best mobile devices for trading stocks?
This group of questions came as a little bit of a surprise, but I guess reflects the changing landscape of the way people access the internet. No more being glued to your computer screen. Now, you can day trade from just about anywhere.
7. How can I do international stock trading online?
It seems that more than a few people are interested in the international stock market scene.
8. How do I start a stock trading account?
Just as baffling as how to find a good online broker (Question #1) is how one actually sets up their trading account.
9. How can I start day trading?
Day trading is something of a mystery to many, but it apparently has some mainstream appeal.
10. What are the rules that govern stock trading service providers?
This last group of questions, rounding out position 10, tended to be very specific and related to what stock trading companies will and won't let you do. These include questions like 'can I day trade without margin?', or 'can I settle my cash profit the same day?' This is a further refinement of Question #1 on finding the right service provider.
After considering all the questions that people are looking for answers to, I think it can be summerized in a single question.
How can I learn how to trade stocks?
The answer can be found here, but ultimately comes down to learning the basics and then finding a good stock trading system to follow.
Good Luck to All,
Timothy Vincent, Ph.D.
StockTradingSystemPro.com
Article Source: http://EzineArticles.com/?expert=Timothy_Vincent
I did a simple search on the internet for questions relating to "stock trading" and compiled the top 10 questions that people had when it came to trading stocks.
1. What is the best online company for trading stocks?
By far and away the most common questions I found (almost a third of them) were concerned with finding the best online stock trading company. This appears to be one of the most common stumbling blocks to getting started trading stocks online.
2. How can I learn about and get started trading stocks?
The next most popular questions were on how one gets started trading stocks. Where can you learn what you need to know, and what do you need to do to get started?
3. What are the definitions or meanings of common stock market trading terms?
More than a few questions centered on finding the definitions of common stock market trading terms. Some examples include: portfolio, volume, forex and options trading.
4. What is the best stock trading software out there?
The next most popular questions on people's minds related to finding good software to assist them in finding reliable trading signals and setting up trades.
5. What is the best virtual stock trading platform?
Next, we had a group of questions relating to virtual or simulated stock trading? Apparently, new traders want to test the waters before making a capital investment. Not a bad idea.
6. What are the best mobile devices for trading stocks?
This group of questions came as a little bit of a surprise, but I guess reflects the changing landscape of the way people access the internet. No more being glued to your computer screen. Now, you can day trade from just about anywhere.
7. How can I do international stock trading online?
It seems that more than a few people are interested in the international stock market scene.
8. How do I start a stock trading account?
Just as baffling as how to find a good online broker (Question #1) is how one actually sets up their trading account.
9. How can I start day trading?
Day trading is something of a mystery to many, but it apparently has some mainstream appeal.
10. What are the rules that govern stock trading service providers?
This last group of questions, rounding out position 10, tended to be very specific and related to what stock trading companies will and won't let you do. These include questions like 'can I day trade without margin?', or 'can I settle my cash profit the same day?' This is a further refinement of Question #1 on finding the right service provider.
After considering all the questions that people are looking for answers to, I think it can be summerized in a single question.
How can I learn how to trade stocks?
The answer can be found here, but ultimately comes down to learning the basics and then finding a good stock trading system to follow.
Good Luck to All,
Timothy Vincent, Ph.D.
StockTradingSystemPro.com
Article Source: http://EzineArticles.com/?expert=Timothy_Vincent
Online Share Trading - All You Need to Know
Online share trading is a recently created platform available to the retail investor to buy and sell shares by using the computer and an Internet connection. Online trading has made the buying and selling of stocks and other financial securities so easy that only by a single click of the mouse, you have either have bought or sold off your shares all from the comfort of your home, office or local cafe.
Online share trading process, though very easy to implement is unfortunately a very tricky process to earn money. It is very important to have knowledge on the stocks you trade in before you start buying and selling the shares online by yourself.
Following are a few paragraphs which will put focus on the online trading process, its benefits, do's and don'ts.
How to go about Online Share Trading?
Online share trading as discussed earlier is the trading platform which works on Internet connection. To begin Online trading all you need to have is a brokerage account, a PC connected to Internet services and appropriate trading software which is normally offered by your broker.
As the old adage says "Easier said than done" is also the case in finding a good broker to help you in online trading. In order to get a good stock broker, you first need to review and analyse all the brokerage institutions, check the options they provide, the brokerage charges and the time taken by them to process your orders. The last factor is the most important one as it determines the price at which the shares are to be bought and sold. As the stock market is very volatile, the price of stocks change from day to day basis and if your order is not processed the same day, you might end up paying more than actually quoted by you or you may end up in loss if the shares are sold at a lower price.
Also the trading platform and the internet connection are important factors. The trading platform offered should be very easy to understand, perform trading tasks and place the orders. If the software itself will be difficult to understand and operate, you might lose your hard earned money by opting for the task operation which you are not clear about.
Internet connection should be speedy enough so that it the trading software immediately captures the market fluctuations and provide you the appropriate data on time. If the speed of the internet connection itself is slow, the data cannot be provided on time and thus you can miss a great opportunity.
All these factors need to be analysed before you get registered with a particular stock broker. Once satisfied with the broker and finished with all the infrastructural requirements you can proceed with broker account opening formalities a get yourself registered with the preferred broker.
BENEFITS OF ONLINE SHARE TRADING:
Online share trading has gained popularity in the recent past due to the various advantages it has offered over traditional and telephonic dealings
• The major benefit of online trading is the ease it offers in buying and selling shares. Every time you need to make a transaction, you need not visit you broker. All you need to do is log in to your account and make hassle free transactions.
• These online trading platforms generate online contract notes/trade statement for your transactions providing you confirmation on the transaction processing.
• The dividends and the bonus declared on the stocks you hold are directly deposited in to your account.
DO'S AND DON'TS IN ONLINE STOCK TRADING:
As Online share trading is very easy, it will always lure you to make quick decisions to earn extra income. Thus it is always recommended to follow some precautionary measures before you end up making a wrong transaction and loose all your hard earned money.
• Formulate a trading strategy. As far as possible try to diversify your investment.
• Do not rush to quick decisions on stocks. Analyse the stocks you intend to buy, check their current and past performance and then make a careful decision.
• Always keep yourself updated on the stocks you hold in your portfolio.
For more great information and resources on buying shares online
Visit our new site www.buyingsharesonline.org today.
Article Source: http://EzineArticles.com/?expert=David_Patullo
Online share trading process, though very easy to implement is unfortunately a very tricky process to earn money. It is very important to have knowledge on the stocks you trade in before you start buying and selling the shares online by yourself.
Following are a few paragraphs which will put focus on the online trading process, its benefits, do's and don'ts.
How to go about Online Share Trading?
Online share trading as discussed earlier is the trading platform which works on Internet connection. To begin Online trading all you need to have is a brokerage account, a PC connected to Internet services and appropriate trading software which is normally offered by your broker.
As the old adage says "Easier said than done" is also the case in finding a good broker to help you in online trading. In order to get a good stock broker, you first need to review and analyse all the brokerage institutions, check the options they provide, the brokerage charges and the time taken by them to process your orders. The last factor is the most important one as it determines the price at which the shares are to be bought and sold. As the stock market is very volatile, the price of stocks change from day to day basis and if your order is not processed the same day, you might end up paying more than actually quoted by you or you may end up in loss if the shares are sold at a lower price.
Also the trading platform and the internet connection are important factors. The trading platform offered should be very easy to understand, perform trading tasks and place the orders. If the software itself will be difficult to understand and operate, you might lose your hard earned money by opting for the task operation which you are not clear about.
Internet connection should be speedy enough so that it the trading software immediately captures the market fluctuations and provide you the appropriate data on time. If the speed of the internet connection itself is slow, the data cannot be provided on time and thus you can miss a great opportunity.
All these factors need to be analysed before you get registered with a particular stock broker. Once satisfied with the broker and finished with all the infrastructural requirements you can proceed with broker account opening formalities a get yourself registered with the preferred broker.
BENEFITS OF ONLINE SHARE TRADING:
Online share trading has gained popularity in the recent past due to the various advantages it has offered over traditional and telephonic dealings
• The major benefit of online trading is the ease it offers in buying and selling shares. Every time you need to make a transaction, you need not visit you broker. All you need to do is log in to your account and make hassle free transactions.
• These online trading platforms generate online contract notes/trade statement for your transactions providing you confirmation on the transaction processing.
• The dividends and the bonus declared on the stocks you hold are directly deposited in to your account.
DO'S AND DON'TS IN ONLINE STOCK TRADING:
As Online share trading is very easy, it will always lure you to make quick decisions to earn extra income. Thus it is always recommended to follow some precautionary measures before you end up making a wrong transaction and loose all your hard earned money.
• Formulate a trading strategy. As far as possible try to diversify your investment.
• Do not rush to quick decisions on stocks. Analyse the stocks you intend to buy, check their current and past performance and then make a careful decision.
• Always keep yourself updated on the stocks you hold in your portfolio.
For more great information and resources on buying shares online
Visit our new site www.buyingsharesonline.org today.
Article Source: http://EzineArticles.com/?expert=David_Patullo
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