This will have all the information I have about Stock Markets. By end of this article, I will try to get a pulse of the market.

For ease let’s start with the market in India:

  • Stock Exchange is place where shares of publicly traded companies are bought and sold. We have two major stock exchanges in India, that are widely used :
    • NSE : National Stock Exchange : top 50 companies listed in this are called NIFTY50.
    • BSE : Bombay Stock Exchange : top 30 companies listed in this are called SENSEX.
    • Other than that, we have:
      • MSE(Metropolitian Stock Exchange, national level exchange - offers trading in equities, derivatives and currency - Focus on developing smaller and medium-sized companies.)
      • RSE(Regional Stock Exchange) : Calcutta Stock Exchange(CSE)-active but with minimal trading volumes, Magadh Stock Exchange(Patna) - merged with SEBI recognized exchanges.
      • Commodity Exchanges : MCX(Multi Commodity Exchange)-deals with trading gold, silver, crude oil and agricultural products, NCDEX(National Commodity and Derivatives Exchange)-focus on agricultural commodities, ICEX(Indian Commodity Exchange)- specializes in commodity derivatives. Note that commodities Exchange is when we trade for commodities, it is not stocks. I have discussed about it further in Commodities Exchange.
  • Stock Market Operations (+, - , * , /, % ):
    • IPO: The first time a company offers its shares to the public.
    • Bull Market: Rising in prices
    • Bear Market: Falling in prices
    • Dividendents:
    • Market Captilization:
    • Blue-Chip Stocks:
    • P/E Earning:
  • Type of investments :
    • SIP:
    • Equity:
    • Mutual Funds:
    • Exchange Traded Funds:
    • Derivatives:
  • When to quit:

Books to read:

References