Definition of Stock Market & Exchange NSE with Dow Jones

What is the Stock Market?

Most commonly talking the Stock Market refers to equities where actually stocks and derivatives are traded. In the India, we say the Stock Market is New BSE Or NSE. In fact there are major Stock Markets in Hong Kong, Hamburg, London, Paris, Canada, Japan and others that have an impact on each other and impact the world Stock Market.

National Stock Exchange(NSE) is found at Bombay, India. It is the 16th largest stock Market globally by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. 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.

Scenario about About USA and other Stock Exchange:

The Fresh New York Stock Market may have stocks indexed which are indexed on various significant Stock Markets. A company headquartered in Amsterdam can be recorded on multiple stock markets. Many foreign organized companies are listed on the New York Stock Trading Game.  You will find a tremendous value for unknown firms that can be for auction on an exchange while in the U.S. The publicity and knowledge of a foreign firm owns a face on a Ny Stock Market. 

An instance is going to be China stock Baidu.  These info and check technology firm has  grown in extreme measures as it was introduced upon the New York State Market.  Sometimes can be found coming up with a good impression to stockpile analysts and also a wonderful review by key visitors to give the mysterious firm an increase. 

View of the market currently is its in the world integration of investors, companies and alliances that creates an unprecedented dynamic. To date this United Countries among the financial markets has yielded an unspoken treaty of like heads. The fundamental goal requires you to build a win-win example for everybody worldwide players from the Stock Market.  

Any investor wherever placed may hold a substantial stake in almost any provided equity regardless of where the equity is exchanged.  The Stock Exchange will be very large professional association that everybody can join with all the only admission ticket may perhaps be the cost of a unmarried share of stock.   

The idea equity have to be broadly interpreted. There are equities which involve the manufacturing of treatments and products, but a product is definitely intellectual or an entity like insurance.  Banks are equities and financial brokers are exchanged found on the different exchanges.  An angel investor might own gold stocks, mining firms and equities that package these equities correct into a corporate institution.  The only limitation is when the broker is interested in Having the commodity or trading throughout the futures market the Chicago Mercantile or another commodities exchanges can be the investing tool.

Put differently you are likely to own a bank as a possible equity and also require bonds or other professional paper that may likely trade upon the commodities exchanges, nevertheless, you can’ t get hold of commodity to be a stock. If you require a commodity like wheat, currency, corn, gold, silver or the such as you may need to look the actual commodities market.  

In the world the brand York Stock Exchange is composed of the NASDAQ, NYSE and also the newly built mixture of the NYSE Group with Euronext in April, 2007. The Euronext holding business is the phenomenal synergy between Paris as well as NYSE whose history goes back to 1792. 

The Euronext definitely a biochemistry combined with derivatives, currency and equities to mention a test of goods.  There are more exchanges that include the AMEX. You’ll discover listing requirements almost every within the exchanges.  The Stock Exchange is absolutely a destination where customers and seller of the part of a company get together as well as in consumer credit card debt the organization hopefully raises some cash or any other appreciate.

 

What is SLR & SLR Definition ?

What is Statutory Liquidity Ratio (SLR Definition)

SLR (Statutory Liquidity Ratio) is the money a commercial bank needs to preserve in the form of cash, or gold or government authorized securities (Bonds) before providing credit to their own customers. SLR rate is decided by the RBI (Reserve Bank of India) as well as to control the expansion of bank credit.

The maximum limit of SLR is 40% and minimum limit of SLR is 24%. It’s 26 now. This limitation is added by RBI on banks to make funds available to customers on demand at your earliest convenience. Gold and G Secs (or Gilts) are included along with cash because the two are highly liquid and secure assets.

The RBI can increase the SLR to contain inflation, suck liquidity in the market, to tighten the measure to protect the customers’ money. In a growing economy banks would probably like to invest in stock market, not in G Secs or Gold as the latter would yield less returns. Another reason why is long term G Secs (or any bond) are sensitive to interest rate changes. But in an emerging economy interest change is a usual activity.

What is Cash Reserve Ration ? What is CRR ?

Cash Reserve Ration (CRR Definition)

It’s the low percentage of amount that each bank has got to deposit to the RBI. If RBI chooses to improve the portion of the, the accessible amount with all the banks boils down. RBI is using this way (increase of CRR rate), to drain out the excessive cash within the banks.

With regard to Example:

Banking companies are required to keep a percentage of their deposits as cash, meaning that in the event you deposit Rs. 100/- in your bank, consequently bank cannot make use of the whole Rs. 100/- for lending or investment cause. They need to keep a part associated with the deposit as cash and may use just the remaining amount for lending/investment. This minimal percentage that is based on the central bank is referred to as Cash Reserve Ratio.

What is Repo Rate and Reverse Repo Rate?

Click Here to Help in future (Stock Market Trading)

A Repo is a item of money market. Generally, Reserve Bank and Commercial Banks engage in repo transactions but not limited to these two. Individuals, banks, financial institutes can also engage in Repo. It is also know as Repurchase Agreement.

The rate at which the RBI gives money to commercial banks is called Repo Rate. This item is of monetary policy. When banks have any shortage of funds they can borrow from the RBI. So, Repo rate is interest rate which is less than Bonds as the borrowing is collateral.

A reducing in the repo rate benefits banks get money at a cheaper rate and vice versa. The repo rate in India and same as the discount rate in the US.

Reverse Repo rate is simply the rate at that the RBI borrows money from commercial banks. Banks are always happy to lend money to the RBI since their money are in safe and secure hands with a good interest. An additional, reverse repo Reserve Bank borrows money from banks by lending securities. The interest paid by Reserve Bank in this case is called reverse repo rate.

repo-rate

What is CRR ? (Cash Reserve Ration)

What is SLR ?

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Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.

What is Nifty Bees?

NIFTY BEES is the first Exchange Traded Fund in India, which aims to offer investment profits that directly match to the total returns of Stocks as displayed by the S&P CNX Nifty Index. It provides you the most diversified exposure at lowest possible unit size. Roughly speaking, value of Nifty bees will be 1/10th value of the current Nifty price.

Nifty Bees can be purchased or sold like a share by using any NSE Stock broker at prices available on the screen. The fundamental portfolio of Nifty BeES very closely duplicated of the S&P CNX Nifty. That’s why, Nifty BeES tracks the movement of S&P CNX Nifty.

Why NFITYBEES suggested?

  • NiftyBeeS is Less price which is listed and traded on the NSE, Nifty BeES can be bought or sold, although the trading day just by a call to your broker. This gives you the power to answer fast to changes in the market. You can place limit orders. Nifty BeES can be held in your DP account with other portfolio holdings.
  • It is Simple which overall performance of Nifty BeES is just the result of performance of shares in the S&P CNX Nifty Index and demand & supply in the market. There is no Fund manager bias.
  • Nifty BeES duplicates the S&P CNX Nifty, investors can know at any given point of time where and how much is invested in each stock.
  • While buying a single stock, one has to analyze the stock, management quality, future prospects and current valuation, which is not the case in ETF because Investing in just one Stock gives exposure to fifty shares of the S&P CNX Nifty. This allows investors to spread risk with one single decision.
  1. What is the Meaning of Sensex ?
  2. What is the definition of Nifty ?
  3. List of Nifty 50 Stock

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Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.

What is Sensex : Definition & History & Finance

SENSEX is the short term for the words “Sensitive Index” and is associated with the Bombay (Mumbai) Stock Exchage (BSE).

What is meaning of Sensex?

The SENSEX was first formed on 1-1-1986 and used the market capitalization of the 30 most traded stocks of Sensex. It is biggest and oldest index. The base was 1979 and taken as 100. The 30 scrips of 1986 and no more the same – some have been removed while some have been added. At irregular intervals, the Bombay Stock Exchange (BSE 50) authorities review and modify its composition to make sure it reflects current market conditions. Actually, Sensex is nothing… I will post very soon about sensex calculation & Sensex history

Today the Sensex constitutes of the following companies:

Company Name (Industry)
1.    ACC (Cement – Major)
2.    Bharti Airtel (Telecommunications – Service)
3.    BHEL (Engineering – Heavy)
4.    DLF (Construction & Contracting – Real Estate)
5.    Grasim (Diversified)
6.    HDFC Bank (Banks – Private Sector)
7.    HDFC (Finance – Housing)
8.    Hindalco (Aluminium)
9.    HUL (Personal Care)
10.    ICICI Bank (Banks – Private Sector)
11.    Infosys (Computers – Software)
12.    ITC (Cigarettes)
13.    Jaiprakash Associates (Construction & Contracting – Civil)
14.    Larsen & Toubro (Diversified)
15.    Mahindra and Mahindra (Auto – Cars & Jeeps)
16.    Maruti Suzuki (Auto – Cars & Jeeps)
17.    NTPC (Power – Generation/Distribution)
18.    ONGC (Oil Drilling And Exploration)
19.    Ranbaxy Labs (Pharmaceuticals)
20.    Reliance Communications (Telecommunications – Service)
21.    Reliance Industries Limited (Diversified)
22.    Reliance Infrastructure (Power – Generation/Distribution)
23.    State Bank of India (Banks – Public Sector)
24.    Sterlite Industries (Metals – Non Ferrous)
25.    Sun Pharma (Pharmaceuticals)
26.    Tata Motors (Auto – LCVs/HCVs)
27.    Tata Power (Power – Generation/Distribution)
28.    Tata Steel (Steel – Large)
29.    TCS (Computers – Software)
30.    Wipro (Computers – Software)

Sexsen is now in 2012

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Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.

Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. Moneymunch.com and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.