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Friday 22 September 2017

Stock Market Introduction

Dear Friends,


Stock market is the place in which you can achieve your goals, maximum returns on investment.
there are so many sections in share market .Equity,Commodity and Currency.
It is very vast department so lets talk about Equity .

Equity:India started permitting outside investments only in the 1990s. Foreign investments are classified into two categories: foreign direct investment (FDI) and foreign portfolio investment (FPI). All investments in which an investor takes part in the day-to-day management and operations of the company, are treated as FDI, whereas investments in shares without any control over management and operations, are treated as FPI.
For making portfolio investment in India, one should be registered either as a foreign institutional investor (FII) or as one of the sub-accounts of one of the registered FIIs. Both registrations are granted by the market regulator, SEBI. Foreign institutional investors mainly consist of mutual fundspension funds, endowments, sovereign wealth funds, insurance companies, banks, asset management companies etc. At present, India does not allow foreign individuals to invest directly into its stock market. However, high-net-worth individuals (those with a net worth of at least $US50 million) can be registered as sub-accounts of an FII.

India has two major stock exchanges - National Stock Exchange of India (NSE) and Bombay Stock Exchange of India (BSE). Most of the share trading in the Indian equity market takes place on these two stock exchanges.
The NSE, on the other hand, was founded in 1992 and started trading in 1994, as the first demutualized electronic exchange in the country. It was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered easy trading facility to the investors spread across the length and breadth of the country. The NSE has a total market capitalization of more than US$1.41 trillion, making it the world's 12th-largest stock exchange as of March 2016.

Both exchanges - BSE and NSE - follow the same trading mechanism, trading hours, settlement process, etc.

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