From Banyan tree to 21st Century backbone of economy
Understanding the Share Market and Bombay Stock exchange in this article, we will know about the share market first and then we will understand what is BSE or Bombay Stock Exchange. Commonly known as the stock market, is a dynamic and influential financial powerhouse that plays a pivotal role in the global economy.
Now a days you find so many ads on net and on TV about share market; “I have earned 1K in on day, 10K in a week, 100K in this much time. Even a kid who doesn’t have license’s drive vehicle, he is overtaking our sentiments that in one day I have earned 10K in a month I have earned bla, bla, bla….so on.
Now let’s get into our main topic, Understanding the share market, it serves as a platform where both individuals and institutions converge to engage in the buying and selling of shares from publicly-traded companies.
Here we will benefit with the basic principle of trading which is of very much important. Buying and Selling. In buying and selling the core principle of commerce, one more principle here comes into picture that is of Demand and Supply when demand is more prices are bound to sore high. When Supply is more prices are going to fall.
Whether you’re considering investing or simply intrigued by the intricacies of the financial world, this comprehensive guide will assist you in effectively navigating the share market.
Understanding the fundamentals
Understanding the Fundamentals
Before embarking on your journey in the share market, it is crucial to grasp the foundational principles. Shares symbolize ownership, stake in a particular company, giving you with a stake in its profits and losses.
Publicly-traded companies issue shares to procure capital for expansion and development. The process of trading shares takes place on stock exchanges, such as the venerable New York Stock Exchange (NYSE) or the tech-savvy NASDAQ, in USA. In India Bombay Stock Exchange (BSE), National Stock Exchange(NSE).
Distinguishing types of shares
Within the realm of shares, there are two primary categories: common and preferred shares. Common shares grant you voting rights in the company, enabling participation in pivotal decisions, like you can participate in their AGM, other meetings on invitation.
Conversely, preferred shares generally do not offer voting rights but come with the assurance of a fixed dividend.
Navigating risks and rewards
Investing in the share market proffers the potential for substantial rewards, but it is not without inherent risks. Share prices can exhibit high volatility, influenced by factors ranging from economic conditions and company performance to global events.
Comprehensive research and the practice of diversification are crucial for managing and mitigating these risks
The art of market analysis
In the share market, smart analysis is first and most important is decision-making. Two principal methods are employed: fundamental analysis and technical analysis.
Fundamental analysis entails a meticulous evaluation of a company’s financial health, its products or services, and the broader market conditions.
Conversely, technical analysis focuses on dissecting historical price charts and patterns to prognosticate future price movements.
Tailoring investment strategies
The strategy you adopt Long term investment, Short Term Investment should correspond with your financial objectives and risk tolerance. Long-term investors often lean towards value investing, where they seek undervalued stocks with growth potential.
On the other hand, day traders; which is known as or one can call it as a short term and swing traders seize opportunities in the short-term price fluctuations. Each strategy has its unique set of tools and approaches, tailored to different time horizons, it’s own principles and its own outcome.
The art of diversification
Diversifying your portfolio through investments in diverse industries and asset classes is a prudent strategy for spreading risk. The age-old adage, “don’t put all your eggs in one basket,” holds true. A well-diversified portfolio acts as a safeguard against the inherent ebbs and flows of the market.
The share market stands as a multifaceted and captivating arena where fortunes can be amassed and, at times, lost.
By acquainting yourself with the fundamentals, comprehending the risks and rewards, conducting meticulous analyses, and tailoring your investment strategy, you can unlock the vast potential of the share market.
Keep in mind that successful financial planning is a journey that demands time, patience, and an unwavering commitment to continuous learning.
Whether you’re a seasoned investor or just setting out on your investment voyage, the share market holds opportunities for everyone.
Up till now we understood basic concept of Share market. Now we will understand the history and information about the main stock market of USA , India, and Some other important ones.
First we will know the Bombay Stock Exchange, So lets go…
The Journey of the Bombay Stock Exchange (BSE):
A Chronicle of India’s Premier Stock Market
The Bombay Stock Exchange (BSE) holds a significant place in the financial achievements of India’s financial history. Established over 145 years ago i.e., on 9th July 1875, BSE has been a foundation stone of India’s economic growth.
For any human the necessary things are Anna (Food), Vastra (Cloth), Nivara (Shelter) we have started out blog with the Food; and we have dedicated almost 9 articles on Milk which is the fist intake of any mammal especially human.
We have also dedicated an article on West County real estate search. Apart from these three major elements in human life is Money; Finance so we are covering this aspect as well and to begin with we are writing on BSE and in next article we will write about Nasdaq.
And more to that living hood, we need to earn money. In recent time plenty of gadgets are available so we need to learn those as well. Using different gadgets, and using them smartly we’ll focus on our upcoming articles.
We are committed to focus Health, Social uplift-ment, Nature concern so time to time we will share and ask our readers to think upon this subject as well. Some social, some noble, some news, some current happenings, history, some travelling and to do as well.
In this article, we will walk through the path of history and into the fascinating journey of BSE, from its inception to its role as a major player in the global financial landscape.
So lets stat with our ongoing topic;
The Genesis of BSE Bombay Stock Exchange
The Bombay Stock Exchange, often referred to as BSE, traces its origins to the late 1850s when a group of leading stockbrokers gathered under a banyan tree in Mumbai.
On 9th July 1875, this historic meeting marked the birth of BSE. It was formally established as “The Native Share and Stock Brokers’ Association” in 1875, under the leadership of Premchand Roychand.
Milestones in BSE’s Bombay Stock Exchange History
- 1887 – First Official Recognition: BSE received its first official recognition from the government of India, becoming the first stock exchange to do so.
- 1956 – Transformation into an Apex Body: The Securities Contracts (Regulation) Act, 1956, give the stature and thus BSE was recognized as an apex body under leading to increased regulatory authority.
- 1986 – Introduction of the BSE SENSEX: One of the most significant milestones was the introduction of the BSE SENSEX, an index that became synonymous with the Indian stock market’s performance.
- 1995 – Online Trading: The new era ushered; BSE with the introduction of an electronic trading system called BOLT (BSE OnLine Trading) in 1995.
- 2000 – First Indian Exchange to Receive ISO Certification: BSE became the first exchange in India to receive ISO 9001:2000 certification for its standard procedures.
- 2007 – BSE’s Move to a Hi-Tech New Tower: BSE moved its operations to the iconic Phiroze Jeejeebhoy Towers, a 29-story building that symbolized its transition to a modern and efficient trading platform.
- 2016 – Merger with United Stock Exchange (USE): BSE expanded its reach by merging with USE, which broadened its product offerings and geographical presence.
- 2020 – BSE Becomes World’s Fastest Exchange: BSE achieved a remarkable feat by becoming the fastest exchange in the world with a median response time of 4 microseconds.
Bombay Stock Exchange-BSE Today
The mesmerising and path breaking journey BSE has come a long way from its humble beginnings under the banyan tree. It is now not only the oldest but also one of the largest stock exchanges in Asia.
It provides a platform for trading in various financial instruments, including equities, derivatives, and debt instruments. BSE’s influence extends beyond the Indian subcontinent as it actively participates in international initiatives and collaborations.
Average Daily Trading Volume
As of July 2023, the market volume of the Bombay Stock Exchange is ₹ 301 trillion (US$ 3.8 trillion)
The Bombay Stock Exchange boasts an impressive average daily trading volume, As of January 2022, with a market capitalization of $3.7 trillion, it is the 9th largest stock market in the world, with over 5,000 listed companies.
The Bombay Stock Exchange (BSE) lists more than 5000 companies with a total market capitalization of $3.5 trillion. The market volume of shares traded in the Bombay Stock Exchange was over 75 billion Indian rupees in fiscal year 2016
Conclusion
The Bombay Stock Exchange has played a pivotal role in shaping India’s financial growth. From its inception in 1875 to its modern, tech-savvy avatar, BSE has adapted and evolved to meet the changing needs of the Indian economy.
Its milestones mark the progress of the Indian financial markets and serve as a testament to its resilience and growth. BSE’s journey is a reflection of India’s economic transformation, and it continues to be a critical player in the world of finance.
Whether you are an investor, trader, or simply interested in the economic history of India, the Bombay Stock Exchange stands as a symbol of India’s financial prowess and its relentless pursuit of excellence.
FAQs: Share Market and Bombay Stock Exchange(BSE)
What is the Stock Exchange ?
Stock market is a place, platform where you can buy and sell or trade, invest in share market.
How to trade shares ?
Trading in shares now a days one has many options and many platforms such as Brokering firm, D-mat account.
What is the Bombay Stock Exchange (BSE)?
The Bombay Stock Exchange, commonly known as BSE, is the oldest and one of the largest stock exchanges in India. It provides a platform for trading in various financial instruments, including equities, derivatives, and debt instruments.
When was BSE established?
BSE was formally established on July 9, 1875, although its origins can be traced back to the late 1850s when a group of stockbrokers gathered under a banyan tree in Mumbai.
What are the key milestones in BSE’s history?
Some of the key milestones in BSE’s history include receiving its first official recognition in 1887, the introduction of the BSE SENSEX in 1986, the transition to electronic trading in 1995, and becoming the world’s fastest exchange in 2020, among others.
How has BSE evolved over the years?
BSE has evolved from a small gathering under a tree to a modern, tech-savvy exchange. It has adapted to changing market needs, expanded its product offerings, and actively participates in international initiatives and collaborations.
What is the average daily trading volume at BSE?
What is the average daily trading volume at BSE?
The average daily trading volume at BSE involves millions of shares changing hands on a regular trading day, As of July 2023, the market volume of the Bombay Stock Exchange is ₹ 301 trillion (US$ 3.8 trillion). More than 5000 companies listed.
What is the average daily turnover at BSE?
The average daily turnover at BSE amounts to billions of rupees per day, AS per last record available, July 2023, the market volume of the Bombay Stock Exchange is ₹ 301 trillion (US$ 3.8 trillion). highlighting the vibrant and dynamic nature of the Indian stock market.
How has BSE contributed to India’s financial landscape?
BSE has played a pivotal role in shaping India’s financial landscape. It has provided a platform for capital formation, investment, and trading, which, in turn, has driven economic growth in the country.
What is the significance of the BSE SENSEX?
In India the BSE SENSEX is one of India’s most widely followed stock market indices. It represents the performance of a diversified group of companies listed on the BSE, making it a key indicator of the Indian stock market’s health.