THE MONEY MARKET

 THE MONEY MARKET

"Set your mind on a definite goal and observe how quickly the world stands aside to let you pass."
- Napoleon Hill

THE EXCHANGES 

Stock Markets like any other business consist of risks and rewards. So to start from basics there are 2 main exchanges in India. The National Stock Exchange (NSE) and The Bombay Stock Exchange (BSE). Here in NSE and BSE,  the regular activities of buying and selling of the stocks take place under the rules and regulations of SEBI  ( Securities and Exchange Board of India )

There are 2 main subsidiaries to these 2 exchanges namely The National security clearing corporation ltd (NSCCL) and The Indian clearing corporation ltd (ICCL). These clearing corporations make sure that there are no defaults either from the buyer's or from the seller's side.  


SEBI

SEBI is one of the most important bodies made to regulate the Indian stock market and keep all the trades and transactions fair. SEBI also ensures that the brokers and the sub-brokers conduct their business fairly. One of the most important tasks of SEBI is to ensure that big players don't eat away from the small players ie; the Participants with an enormous amount of cash do not manipulate the market and the retail investors are protected from such threats.

The Head office of SEBI at the business district of Bandra Kurla Complex, Mumbai.

THE TRADING MECHANISM

The mechanism here is quite simple. It happens with the help of an open electronic limit order book in which order matching is done by the computers. the advantage of using this system is that there is more transparency by clear visibility of buyers and sellers to us. All the orders need to be placed through brokers. Most of the brokers now have gone online and provide us to trade through the exchanges on our phones and laptops.  Institutional investors however can use Direct Market Process (DMA) option in which they use terminals provided by brokers to place orders directly into the market trading systems.


THE INDICES

Talking about the markets and all the companies present on the exchanges it's difficult for one to look at how markets are performing on day to day basis so just to make this simple we have the MARKET INDICES.  The two main market watches are the NIFTY 50 comprising of the top 50 companies listed on NSE and SENSEX comprising of the top 30 companies listed on BSE. 


  • click on the given link to see the top 50 companies of NSE]    click here
  • click on this link to see the top 30 companies of BSE click here

CONCLUSION

Learning of the markets and all the segments are not a cakewalk but I can assure you that it's worth giving your precious time. The stock market may not make you rich overnight but believe me, learning the process can really boost up the process of achieving the luxurious life you have ever dreamt of. In this era of computerization, it's really important to use the internet for the benefit for one's personal life and professional life. Make sure you use your resources wisely in the process of achieving longer-term happiness than the shorter term. Thank you for giving your precious time in reading this article.


 








 




 

 

 

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