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Saturday 16 February 2013

A complete episode on what the stock market actually is...


Do you know this STOCK MARKET?
Basically,even from my own experience is what am going to tell you people. Most of the old people and illiterate people of our country still doesn’t know what is this stock market/share market.Still these people simply we can say poor people believes that it is simply a loss game.But rightly speaking,these people incurred losses mainly due to wrong time of investment,wrong portfolio selection and even unawareness about the market.And here,we the newsandinfoguide team is about to  start a chapter on
“What is this stock market?”.
Lets begin the study or chapter by identifying the participants in the stock market and they are as follows:-
1.Investors- Investors here resembles the individuals and organisations or corporates who perform the function of buying and selling of shares in the secondary market with an intention of making returns either through recieving dividents,capital appreciation in capital amount invested,and other benifits like bonus shares etc.An investor can be an individual like you and me,corporate institutions like LIC,HDFC INSURANCE ,Mutual fund organisations like UTI etc.
2.SEBI- Like RBI for Banks,SEBI is the apex body who is taking care of each and every issues related to Stock market.SEBI stands for SECURITIES AND EXCHANGE BOARD OF INDIA.And another body that takes care of the Insurance sector is IRDA(INSURANCE REGULATORY DEVELOPEMENT AUTHORITY OF INDIA)
3.Stock exchange-It is the market and platform where the trading and investment process happens.NSE and BSE are the active and leading ones.There are about 23 stock exchanges and the names of some are mentioned below.(might be usefull in interviews)
       Ahmedabad Stock Exchange Ltd.
       Bangalore Stock Exchange Ltd.
        Cochin Stock Exchange.
        Delhi Stock Exchange Ltd
        Madhya Pradesh Stock Exchange Ltd
       Madras Stock Exchange Ltd.
4.Depositories-Earlier times,those share certificates were available in Paper form and due to such reasons there were lot of mishandling,manipulations and so on.And due this,shares have been started issuing at electronic form.And now ,shares are available only in electronic form.NSDL AND CDSL are those depositories/participants holding these in such forms.NSDL stands for NATIONAL SECURITIES DEPOSITORY Ltd and CDSL stands for CENTRAL SECURITIES DEPOSITORY Ltd. 
5.Brokers-We cannot buy the shares directly from the market and we need an intermediary and that is the stock/share market broker.They are almost similar to our real estate brokers in the sense that they charges brokerage/commision  for the services rendered in the form of transacting securities(buying and selling).The well known brokers in Kerala are Geojit,Hedge,Jrg etc.
6.Banker-None of the finance experts have stated bak as a financial stock market participant.But,one thing we have to understand is the role of the bank in transacting funds to the broker and from the broker that is it can be understood from a real investor point of view.None of the brokers accept cash,instead they ask for cheques.Here lies banker's role in transacting funds.
The rest is simply about the process of dealing in shares simply buying and selling which will be in detail in tomorrow....in a simple languageso that the normal person can understand...keep updated.

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