Share market basics
The Bombay Stock Exchange, Asia's oldest stock exchange, based in Mumbai and home of the Sensex index.
BSE, the Bombay Stock Exchange, is one of India's two main stock exchanges, founded in 1875 on Dalal Street in Mumbai. It publishes the Sensex, an index of 30 large companies. Thousands of companies are listed on BSE, including many that are not on NSE, though most trading volume in India happens on NSE. A single company such as SBI can be listed on both exchanges, and its price is nearly identical on each because arbitrage keeps them aligned. When you place an order, your broker lets you choose the exchange, and for delivery investing it rarely matters. For derivatives, NSE dominates, while BSE has built its own index options market on Sensex and Bankex. Both exchanges are regulated by SEBI. Knowing which exchange you traded on matters mainly for reading your contract note and for the exchange transaction charges applied.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
