Feb 9, 2008

Some basic definitions

What is a Stock ?

A 'STOCK' represents share in the ownership of a company. A person owning a companies stock means he is also considered as one of the many owners of the company. Other names by which stocks are denoted are share or equity...



Stock exchange :

The place where these stocks or shares are bought and sold is called 'Stock Exchange'. In india there are many stock exchanges like National stock exchange (NSE), Bombay stock exchange (BSE), Calcutta stock exchange etc. Out of these BSE and NSE are very famous because most of the stock trading in the country is done through these exchanges only.

Sensex & Nifty :

It is mandatory to have an indicator in order to analyze the growth of stock market !!! This we normally call it as INDEX...

Here Sensex is the index of BSE whereas Nifty is the index of NSE. In addition to Sensex and Nifty there are many other indexes but for beginner level these two are enough ;-)


Some amazing facts - On 25th july, 1990 the Sensex touched the magical four-digit figure for the first time and closed at 1,001. Now in 8th jan, 2008 the Sensex have crossed the 21,000-mark => rapid growth in our economy!!!

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