Share Market Index

Index in share market.

Index consists of group of shares. Index denotes the direction of the entire market. Like when people say market is going up or down then that means Index is going up or down. Index consists of high market capitalization and high liquidity shares.
High Market capitalization shares – Companies having highest number of shares and highest price of each share.
Market capitalization is calculated by multiplying current share price and number of shares in the market.
High Liquidity shares – Shares in the market with high volumes.

Two types of Indices: Nifty and Sensex

Nifty – Nifty consist of a group of 50 shares.
Sensex – Sensex consist of a group of 30 shares.

Stock exchanges:
Mainly there are two exchanges in India.
NSE (National stock exchange) – Nifty is listed with NSE.
BSE (Bombay stock exchange) – Sensex is listed with BSE.

NSE and BSE are countries economic barometer.

Stock exchanges like NSE and BSE are the places where the trading of shares takes place.

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Introduction to Share Market

Share and Share market

Still not able to decide whether to invest your money in Share Market or not and it is due to your lack of knowledge about Share Market. Then I will try to help you in this and in my upcoming articles to understand the share market. How does it work? What are important factors to consider? What to avoid? And what not to miss? Let me explain you first what does ‘Share’ means and what does ‘Share Market’ means.

Share: - Share is nothing but the Ownership of the company divided into small parts and each part is called as Share or Stock. Share is also called by different names. And they are Equity, Financial security and so on.
A person carrying a share of a company holds that part of ownership in that company. A person holding maximum shares carry maximum ownership and designated like director, chairman etc. So when you buy shares of any company you become one of the owner of that company. Isn’t it cool?

Share Market: - A Share market is the place where buying and selling of shares takes place.
Now days due to internet and advanced technology there is no need to present physically in exchanges like NSE and BSE but in fact the buying and selling of shares can be done from anywhere, where there is a computer with internet connection.
One should have a Demat and trading account, computer and internet connection and he/she can start the share trading or investing from anywhere.

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