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You surely have heard or read somewhere about the stock market shares but don’t know exactly what it is. The stock market is gaining more popularity because of its undeniable impacts on economic development.
Stock market investing led the companies to build capital with the help of public. Investing is the best way to increase your spare money with time. It all starts with making the right choices. First things first, let us discuss in detail the stock market.
The stock market is like a platform for companies to sell their shares publicly. And allows the public to buy those shares. A share is a part of the company owned by the shareholder. Another term for share is stock. Stocks are a way to collect money from the public and build the company’s capital. And for the public, stocks are a means of passive income and profit. So both the company and the public willingly sell and buy the stocks to keep up the pace and grow money. Get to learn more about the stock market with Kailash Concepts’ wide selection of whitepapers and investment research tools.
How stock exchange started:
It all started in India in the early 18th century. East India Company started trading loan security and corporate shares. The shift took place when 22 brokerage firms invested in the company and started trading across Bombay beneath a banian tree. This place is now called as Horniman circle.
The shift started to expand when more companies took part in trading, and the place got shifted from a tree to meadows street junction and then finally to Dalal street in 1874. This was the first informal stock exchange set up known as the Bombay stock exchange (BSE). It was granted permission to perform activities under the securities contract regulation act 1956.
Modern stock exchange:
The formation of the Bombay stock exchange brought a big revolution and so many countries started to build the stock market. BSE had to take a fall because of the Harshad Mehta scam that happened in 1992. To bring transparency and keep up the public trust, there was an immediate need for another stock exchange market that could compete with BSE.
Then, the National stock exchange (NSE) earned its name against BSE. It was the first market that dealt with the exchanges electronically in 1994. Today, the competition is increased and New York Stock Exchange has got public attention. It provides an electronic system and launched its unique products that are appreciated by the companies.
NYSE is ruling the stock exchange market because of the ever-increasing American economy. LSE is a good competitor that is influencing European countries like Germany, France, Italy, etc.
In the current stock market system, NYSE and NASDAQ are the priority. Most stocks are being traded by these two. More than 50 large companies are a part of these, and the public has high hopes to get something in return. NASDAQ is electronically superior because of its burgeoning technology implantation. It was the first stock exchange that led the exchange electronically between the webs. If you would like to learn about how to invest in the stock market, visit retirementinvestments.com.