Role and importance of stock market in india
Stock Exchanges play a crucial role in the consolidation of a national economy in general and in the development of industrial sector in particular. It is the most dynamic and organised component of capital market. Especially, in developing countries like India, the stock exchanges play a cardinal role in promoting the level of capital formation through effective mobilization of savings and ensuring investment safety.
Stock exchanges provide organised market for an individual as well as institutional investors. They regulate the trading transactions with proper rules and regulations in order to ensure investor's protection. This helps to consolidate the confidence of investors and small savers. Thus, stock exchanges attract small savings especially of large number of investors in the capital market.
Importance of stock market and How stock market is important for countries economy ::laqenyberegi.web.fc2.com
The funds mobilised through capital market are provided to the industries engaged in the production of various goods and services useful for the society. This leads to capital formation and development of national assets. The savings mobilised are channelised into appropriate avenues of investment.
Stock exchanges provide a wider avenue for the investment to the people and organisations with investible surplus. Companies from diverse industries like Information Technology, Steel, Chemicals, Fuels and Petroleum, Cement, Fertilizers, etc. Online trading facility has brought the stock exchange at the doorsteps of investors through computer network. Diverse type of securities is made available in the stock exchanges to suit the varying objectives and notions of different classes of investor.
Necessary information from stock exchanges available from different sources guides the investors in the effective management of their investment portfolios.
Stock exchanges provide liquidity of investment to the investors. Investors can sell out any of their investments in securities at any time during trading days and trading hours on stock exchanges. Thus, stock exchanges provide liquidity of investment. The online trading and online settlement of demat securities facilitates the investors to sellout their investments and realise the proceeds within a day or two.
Even investors can switch over their investment from one security to another according to the changing scenario of capital market.
Stock exchanges facilitate the investors to decide his investment priorities by providing him the basket of different kinds of securities of different industries and companies.
He can sell stock of one company and buy a stock of another company through stock exchange whenever he wants.
He can manage his investment portfolio to maximise his wealth.
Stock exchanges through their by-laws, Securities and Exchange Board of India SEBI guidelines, transparent procedures try to provide safety to the investment in industrial securities. Government has established how to make an origami dollar ring (moneygami) National Stock Exchange NSE and Over The Counter Exchange of India OTCEI for investors' safety. Exchange authorities try to curb speculative practices and minimise the risk for common investor to preserve his confidence.
Online price quoting system and online buying and selling facility have changed the nature and working of stock exchanges.
Formerly, the dealings on stock exchanges were restricted to its head quarters. The investors across the country were absolutely in dark about the price fluctuations on stock exchanges best pound to euro rate uk to the indian stock market operator calls of information.
But today due to Internet, on line quoting facility is available at the computers of investors. As a result, they can keep track of price fluctuations taking place on stock exchange every second during the working hours. Channels like CNBC are fully devoted to stock market information and corporate news. Even other channels role and importance of stock market in india the on line quoting of stocks.
Thus, modern stock exchanges backed up by internet and information technology provide wide marketability to securities of the industries.
Demat facility has revolutionized the procedure of transfer of how to buy coca cola stock direct and facilitated marketing.
Stock Exchanges make available the financial resources available to the industries in public and private sector through various kinds of securities. Due to the assurance of liquidity, marketing support, investment safety assured through stock exchanges, role and importance of stock market in india public issues of securities by these industries receive strong public response resulting in over subscription of issue.
Stock exchanges provide liquidity, marketability, price continuity and constant evaluation of government securities.
Stock exchanges are the symbolic indicators of industrial development of a nation. Productivityefficiency, economic-status, prospects of each industry and every unit in an industry is reflected through the price fluctuation of industrial securities on stock exchanges. Stock exchange Sensex and price fluctuations of securities of various companies tell the entire story of changes in industrial sector. Stock exchange is taken as a Barometer of the economy of a country.
INDIAN STOCK MARKET : FUNCTIONS AND IMPORTANCE | Mohd Naved - laqenyberegi.web.fc2.com
Each the best strategies of binary options 60 seconds video is economically symbolized indicators by its most significant stock exchange. New York Stock Exchange, London Stock Exchange, Tokyo Stock Exchange and Bombay Stock Exchange are considered as barometers of U. A, United Kingdom, Japan and India respectively. At both national and international level these stock exchanges represent the progress and conditions of their economies.
Thus, stock exchange serves the nation in several ways through its diversified economic services which include imparting liquidity to investments, providing marketability, enabling evaluation and ensuring price continuity of securities.
9 Most Important Functions of Stock Exchange/Secondary Market
KALYAN CITY LIFE Sharing Wisdom and Vivid Memories of Life. Home Disclaimer Privacy Contact. Role of Stock Exchanges In Capital Market of India Post: Role of Stock Exchanges In Capital Market of India Sitemap of Kalyan City Life Blog. No Comment Yet Please Comment. Newer Posts Older Posts Home. FINANCE What is Finance? Meaning Definition Features of Finance What is Financial Planning?
Meaning Types of Financial Plans What is Financial Management? Meaning Definition Scope Articles What is Corporate Finance? Meaning - What it Includes? BANKING What is a Bank?
ROLE OF STOCK MARKET IN ECONOMY DEVELOPMENT | Interal Res journa Managt Sci Tech - laqenyberegi.web.fc2.com
Introduction, Definition and Features of Bank Different Types of Banks - What are Various Kinds of Banks? Commercial Banks - Definitions, Primary Secondary Functions Balance Sheet of Commercial Bank - Liabilities and Assets How to Open Bank Account?
Saving Account Bank - Meaning, Features and Advantages of It Fixed Deposit Account of Bank - Meaning, Features, Advantages What is Current Bank Account? Its Features and Advantages Recurring Deposit Account In Bank - Meaning and Features What is a Cheque? Definition - Kinds and Types of Cheques What are Features of Cheques? Main Characteristics of Checks What is Crossing of Cheque?
Different Types of Check Crossing Automated Teller Machine ATM - The Advantages of ATM Machine E-Banking - Online Banking - Main Advantages of E-Banking Principles of Good Lending Every Banker Follows - Loans Different Forms of Advances by Commercial Banks - Loan Types Duties and Responsibilities of Computer Operator in Bank Nationalisation of Banks in India - Introduction Objectives Demerits Narasimham Committee Report I II - Recommendations New Economic Reforms of the Banking Sector In India - Brief Functions of Reserve Bank of India RBI - Credit Policy of RBI.
CATEGORY Administrative Law Advertising Banking Business Development Communication Skills Distinguish Between Economics Education Finance Industrial Psychology Kalyan City Management Marketing Research Production Planning. FEATURED Worlds Top 10 Most Poisonous Venomous Deadliest Snakes Balayam Nail Rubbing Exercise Cures Alopecia, Hair Loss, Bald What is Credit Card? Meaning Definition Size Anatomy Glossary Difference Between Primary and Secondary Data Top Inventions and Discoveries by Scientists - A to Z List - Science How to Improve Human Relations?
How To Prepare For Successful Job Interviews? Best Interview Tips How To Summarize Passage? Summarization Skills Techniques Basic Principles of Insurance - Examples of Insurance Principles Indian Money Market - Features, Drawbacks and Recent Reforms Concept of Marketing Research MR Marketing Research Process.
Importance In Modern Marketing 5 m's of advertising and advantages of advertising Quality Control Total Quality Management TQM Quality Circles.