Wednesday, 28 September 2016

BSE


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What is BSE?
Ans: BSE is the first and largest securities market in India, the Bombay Stock Exchange (BSE) was established in 1875 as the Native share and Stock Brokers Association. Based in Mumbai, India, the BSE lists close to 6000 companies and is one of the largest exchanges in the world.The BSE has helped develop the country's capital markets, including the retail debt market, and helped grow the Indian corporate sector.
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                            In 1995 the BSE Switched from an open-floor to an electronic trading system securities listed by the BSE include stocks, stock futures, stock options, index futures, index option and weekly options. The BSE's overall performance is measured by the Sensex, an index of 30 of the BSE's largest stocks covering 12 sectors.
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Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now spanning there centuries in its 133 years of existance. What is now popularly known as BSE was established as "The Native Share & Stock Brokers" Association in 1875.
     
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                                                                       BSE is the first stock exchange in the country which obtained. permanent recognition(in 1956). from the Government of India under the securities contracts (Regulation) Act 1956. BSE,s pivotal and per-eminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995. Earlier an Association of persons(AOP), BSE is now a corporatised and demutualised entity incorporated under the provisions of the companies Act, 1956, pursuant to the BSE(corporatisation and Demutualisation) Scheme, 2005 notified by the securities and exchange Board of India(SEBI). With demutualisation, BSE has two of world's best exchanges, Deutsche Borse and Singapore Exchange, as its strategic partners.
          
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                                                                                         Over the past 133 years BSE has faciliated the growth of the Indian Corporate sector by providing in with an effcient access to resources. There is perhaps no major corporate in India which has not Sourced BSE's Services in raising resources from the Capital market.
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The Bombay Stock Exchange (BSE) is an Indian Stock exchange located at Dalal Street, Kala Ghoda, Mumbai, Maharashtra, India, Established in 1875, the BSE is Asia's first stock exchange. It claims to be world's fastest stock exchange, with a median trade speed of 6 microsecond. The BSE is the world's 11th largest stock exchange with an overall market capitalization of $1.7 trillion as of 23 January 2015, more than 550 compamies are publicly listed on the BSE. 


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The Bombay is the oldest exchange in Asia, its history dates back to 1875, when five stockbroker. would gather under banyan frees in front of Mumbai's town hall. The location of these meetings changed many times to accommodate an increasing number of brokers. The group eventually moved to Dalal Street in 1874 and in become an official organization known as "The Native share & stock Brokers Association" in 1875.

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Friday, 23 September 2016

NSE

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What is NSE?
Ans: The National Stock Exchange of India Limited (NSE) is India's largest financial market. Established in 1992, the NSE has developed into a sophisticated in 1992, the NSE has developed into a sophisticated electronic market, which ranks third in the world for transacted volume. The NSE conducts transactions in the wholesale debt, equity and derivative markets.
     
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                                                                                            NSE based in Mumbai, India, the national stock exchange is a leader in market technology. The exchange's supports more than 3,000 VSAT terminals, making the NSE the largest private wide-area network in the country. The National Stock Exchange has been a pioneer for Indian financial markets, being the first electronic limit order book to trade derivatives and ETFs.
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The National Stock Exchange in India. Set up in November 1992, Unlike Bombay Stock Exchange (BSE), was the result of the recommendations of a high-powered group set up to study the establishment of new stock exchanges, which would operate on a pan-India basis. Its share holders consist of 20 financial institutions including state-owned banks and insurance companies.
       
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                                                                                                       Headquartered in Mumbai, NSE offers capital raising abilities for corporations and trading platform for equities, debt, and derivatives including currencies and mutual fund units. It allows for new listings, initial public offers(IPOs), debt issuance and Indian Depository Receipts(IDRs) by overseas companies raising capital in India.
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The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange. It is the largest stock exchange in India and the third largest in the world in terms of volume of transactions. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions.
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        NSE is mutually-owned by a set of leading financial institutions, banks, Insurance companies and other financial intermediaries in India. But Its Ownership and management operate as separate entities. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In October 2007, the equity market capitalization of the companies listed on the NSE was US $ 1.46 trillion, making it the second largest stock exchange in South Asia, behind the Bombay Stock Exchange, and the eleventh largest in the world.
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Wednesday, 14 September 2016

Secondary Market

What is secondary market?
Ans: The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market", though stocks are also sold on the primary market when they are first issued. The national exchange, such as the Newyork Stock Exchange(NYSE).
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       Though stocks are one of the most commonly traded securities, there are also other types of secondary markets. For example, investment bank and corporate and individual investors buy and sell mutual funds and bonds on secondary markets. Entities such as Fannie Mae and Freddie Mae also purchase mortgages on a secondary market.
       
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                                            Transactions that occur on the secondary market are termed secondary simply because they are one step removed from the transaction that originally created the securities in question. For example, a financial institution writes a mortgage security. The bank can then sell it to Fannie Mae on the secondary market transaction.
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The secondary market , also called the after market, is the financial market in which previously issued financial instruments such as stock, bonds, options and futures are bought and sold. Another frequent usage of "Secondary market" is to refer to loans which are sold by a mortgage bank to investors, such as Fannie Mae and Freddie Mae.

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                                            The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an exiting product or asset where the customer base is the second market (for example, corn has been traditionally used primarily for food production and feed-stock, but a "second" or "third" market has developed for use i ethanol production).
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This is the market where in the trading of securities is done. Secondary market consists of both equity as well as debt markets.
 
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                   Securities issued by a company for the first time are offered to the public in the primary market. Once the IPO is done and the stock is listed, they are traded in the secondary market. The main difference between the two is that in the primary market, an investor gets securities directly from the company though IPOs, while in the secondary market, one purchases securities from other investors willing to sell the same.
   
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                       Equity shares, bonds, preference shares, treasury bills, debentures, etc are some of the key products available in a secondary market. SEBI is the regulator of the same.
      
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Primary Market

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What is primary market?
Ans: A primary market issues new securities on an exchange for companies, governments and other groups to obtain financing through debt-based or equity-based securities. Primary market are facilitated by underwriting groups consisting of investment banks that set a beginning price range for a given security and oversee its sale to investors. Once the initial sale is complete, further trading is conducted on the secondary market, where the bulk of exchange trading occurs each day.
  
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                                                                                                                  Companies and government entities sell new issues of common and preferred stock, corporate bonds, and government bonds, notes, and bills on the primary market to fund business improvements or expand operations. Although an investment bank may set the securities initial price and receive a fee for facilitating sales, most of the funding goes to the issuer. Investors pay less for securities on the primary market than on the secondary market.

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The primary market is the part of the capital market that deals with issuing of new securities. Companies, governments or public sector institutions can obtain funds through the sale of a new stock or bond issues through primary market. This is typically done through an investment bank or finance syndicate of securities dealers.
     
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                                       The process of selling new issues to investors is called underwriting in the case of a new initial public offering(IPO). Dealers earn a commission that is built into the price of the security offering , though it can be found in the prospectus. Primary market create long term instruments through which corporate entities borrow from capital market.
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The primary market is also known as new issues market. Here, the transaction is conducted between the issuer and the buyer. In short, the primary market creates new securities and offers them to the public.
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   For instance, initial public offering(IPO) is an offering of the primary market where a private company decides to sell stocks to the public for the first time. An important point to remember here is that in the primary market, securities are directly purchased from the issuer.
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Features of primary markets are Followings:-
(I).  This is the market of new long term equity capital. The primary market is the market where the securities are sold for the first time. Therefore, it is also called the new issue market(NIM).
(II). In a primary issue, the securities are issued by the company directly to investors.
(III). The company receives the money and issues new security certificate to the investors.
(IV). Primary issue are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business.
(V). The primary market performs the crucial function of facilitating capital formation in the economy.
(VI). The new issue market does not include certain other sources of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may be raising capital for converting private capital into public capital, this is known as "going public".
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Friday, 9 September 2016

Money Market

What is money market?
Ans: The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year. Among the most common money market instruments are Eurodollar deposits, negotiable certificates of deposit (CDs) bankers acceptances, U.S Treasury bills, Commercial  paper, municipal notes, federal funds and repurchase agreements(repos).
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          Money market transactions are wholesale, meaning that they are for large denominations and take place between financial institutions and companies rather than individuals. Money market funds offer individuals the opportunity to invest smaller amounts in these assets.
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Money market basically refers to a section of the financial market where financial instruments with high liquidity and short- term maturities are traded. Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial paper.
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                          Over-the-counter trading is done in the money market and it is a wholesale process. If is used by the participants as a way of borrowing and lending for the short term.
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Money market consists of negotiable instruments such as treasury bills, commercial papers and certificates of deposit. It is used by many participants, including companies , to raise funds by selling commercial paper in the market. Money market is considered a safe place to invest due to the high liquidity of securities.
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                          It has certain risks which investors should be aware of, one of them. being default on securities such as commercial papers. Money market consists of various financial institutions and dealers, who seek to borrow or loan securities. It is the best source to invest in liquid assets.
   
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                                                                                                                          The money market is an unregulated and informal market and not structured like the capital markets, where things are organized in a formal way. Money market gives lesser return to investors who invest in it but provides a variety of products.
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Tuesday, 6 September 2016

Capital Market


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What is Capital Market?
Ans: Capital markets are for buying and selling equity and debt instruments. Capital markets channel saving and investment between suppliers of capital such as retail investors and institutional investors, and users of capital like business, government and individuals. Capital market are vital to the functioning of an economy, since capital is a critical component for generating economic output. Capital markets include primary markets, where new stock and bond issues are sold to investors, and secondary markets, which trade exiting securities.

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                                                       Capital markets are a broad category of markets facilitating the buying and selling of financial instruments. In particular these two categories of financial instruments that capital in which markets are involved. These are equity securities, which are often know as stocks, and debt securities, which are often known as bonds. Capital market involve the issuing of stocks and bonds for medium-term and long-term duration, generally terms of one year or more.
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Capital markets are overseen by the securities and exchange commission in the united states or other financial regulators elsewhere. Thought capital markets are generally concentrated in financial centers around the world, most of the trades occurring with in capital markets take place through computerized electronic trading systems. Some of these are accessible by the public and others are more tightly regulated.
    
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                Other than the distinction between equity and debt, capital markets are also generally dividend into two categories of markets. In primary markets, stocks and bonds are issued directly from companies to investors, businesses and other institutions, often through underwriting. Primary markets allow companies to raise capital without or before holding an initial public offering so as to make as much direct profit as possible. After this point in a company,s development, it may choose to hold an initial public offering so as to make as much direct profit as possible. After this point in a company's development, it may choose to hold an initial public offering so as to generate more liquid capital. In such an event, the company will generally sell its shares to a few investment banks or other firms.
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Capital market is a market where buyers and seller engage in trade of financial securities like bonds, stocks, etc. The buying/selling is undertaken by participants such as individuals and institutions. Capital markets help channelize surplus funds from savers to institutions which then invest them into productive use. Generally, this market trades mostly in long-term securities.
         
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                                                                                      Capital market consists of primary markets and secondary markets. Primary markets deals with trade of new issues of stocks and other securities, whereas secondary market deals with the exchange of exiting or previously-issued securities. Another important division in the capital market is made on the basis of the nature of security traded, i.e stock market and bond market.
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Friday, 2 September 2016

Financial Market

What is financial market?
Ans: The financial market is a broad term describing any marketplace where trading of securities including equities, bonds, currencies and derivatives occurs. Although some financial markets are very small with little activity, some financial markets including the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) and Forex markets trade trillions of dollars of securities daily.
 
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                                                                                                                                                  Financial market prices may not indicate the true intrinsic value of a stock due to macroeconomic forces like taxes. In addition, the prices of securities are heavily reliant on informational transparency by the issuing company to ensure efficient and appropriate prices are set by the market.
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Financial market are you confused with this term , Then you don't need to , As financial market go by many terms including capital market, wall street, dalal street, even the markets, some people simply say its a stock market, but they actually referring to, stock, shares, bonds and commodity.
                                                                                                                            if is quite simple type of financial transaction that help you business grow and make profit for you is financial market, that is in simple terms.
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A financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand securities include stocks and bonds and commodities include precious metals or agricultural products.
     
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                                                                                                                             In economics, typically, the term market means the aggregate of possible buyers and sellers of a certain good or service and the transactions between them.
                                            The term "market" is sometimes used for what are more strictly exchanges, organizations that facilitate the trade in financial securities, e.g a stock exchange or commodity exchange. This may be a physical location (like the NYSE, BSE, NSE) or an electronic system (like NASDAQ). Much trading of stocks takes place on an exchange, still corporate actions (merger, spinoff) are outside an exchange while any two companies or people, for whatever reason, may agree to sell stock from the one to the other without using an exchange.
 
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                                                                                               Trading of currencies and bonds is largely on a bilateral basis, although some bonds trade on a stock exchange, and people are building electronic systems. For these as well, similar to stock exchanges.
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