A stock exchange is a place for investors to securely trade-in equity. Stock Exchanges help the investors and companies to link and trade securely. It becomes easier for companies to raise funds. Additionally, making it easy for them to grow their business. They act as an intermediary between the investors and the companies. Therefore the rising popularity of Stock Exchanges in India is helping investors differently.
Stock Exchanges are highly organized financial markets with different securities and bonds. The prominent members of stock exchanges are stock brokers. People look for the best stock broker in India as they offer many services like stock trading, support, research, etc. The comfort and reliability that stockbrokers provide are now a new trend in trading culture.
Services Provided by Stock Exchange to Investors
Stock Exchanges provide valuable services to investors. The services include:
Liquidity
Stock Exchanges made trading relatively easy for investors, as they provided a ready market for the securities to buy and sell. Moreover, investors can trade securities through the cheapest stock broker in India.
Safe Trading
Fair dealing and safety are what investors want. It is precisely what stock exchanges ensure the investors. In addition, good supervision and control over activities through them have helped investors.
Investment Guide
Investors buy and sell securities through the best stock broker in India. Hence, with the help of brokers, investors can make rational decisions in investment.
Loan Facility
The securities with stock exchanges are negotiable, and thus investors can use them as collateral security for raising loans.
How Does the Stock Exchange Benefit Investors?
The question is, how do the stock exchanges help the investor? So, here is how investors are privileged by the stock exchanges.
Determining the Fair Price
Stock Exchanges help investors discover the listed securities’ fair price publicly. The constant buying and selling of securities to determine the price is supported by the Stock Exchange.
Industrial Advancement
The rising industrialization of a nation depends on capital availability. Thus, the exchanges ensure this as the public can invest directly in the companies they are interested in through stock exchanges.
Protecting Investors
Stock Exchanges keep a keen eye on loopholes, and hence there are different guidelines for the operation of the listed entities. Companies should strictly follow the additional rules and regulations. It protects the rights of investors as they buy the stocks. It is significant for the investor to inform the stock exchange of their decisions.
Reducing dependency on Loan
The stock exchanges have helped listed companies to avoid availing of a loan as they could raise capital by issuing shares. How does it benefit? It helps them save a particular amount in the form of regular interest outgo.
Secondary Markets
Stock Exchanges will help the investor of certain bonds to sell their holding within the maturity period or lock-in time. Bonds like Sovereign Gold Bonds are allowed to trade by stock exchanges.
Economic Barometer
It reflects the fluctuation in the market that affects the price of securities. Prices on a Stock Exchange tend to reflect different trade cycles, for instance, boom, recession, recovery, etc. This helps the investors to know about the share market better.
Channel For Investment
Stock Exchanges help the investor channel the funds in a more productive manner. A company with good performance and prospects faces no difficulty in raising capital. Stock Exchanges inform the investors in which direction the investment wind is going.
Encourages Savings
The stock market encourages investors to invest and save more. Investing in various securities helps the investors with great returns. Hence, investment in the stock market is more beneficial than gold and silver.
List of Famous Stock Exchanges in India For the Investors
Stock Exchanges that are operating in India are as follows:
Bombay Stock Exchange- BSE
Bombay Stock Exchange is one of the oldest and most famous stock exchanges, established in 1875. As the oldest and largest stock exchange in Aisa, BSE operates from Mumbai, Maharashtra.
National Stock Exchanges- NSE
National Stock Exchange (NSE) is India’s first stock exchange established in 1992, providing services to investors until now. It was the first stock exchange to provide a trading platform to investors. NSE regulates its operation from Mumbai, Maharashtra.
Metropolitan Stock Exchange- MSE
Metropolitan Stock Exchange is a modern clearinghouse formed to platform the clearance and settlement of multiple asset classes contracts. MSE conducts its regulation from Mumbai, Maharashtra.
India International Exchange- India INX
India International Exchange is the first international stock exchange established in 2017. It operates out of Gujarat International Finance Tea-City and is also a subsidiary of BSE.
Calcutta Stock Exchange- CSE
Calcutta Stock Exchange (CSE) started its regulations in 1908. This stock exchange operates from Kolkata, West Bengal. Securities and Exchange Board of India (SEBI) has asked CSE to exit from the market. However, the matter is still in the Calcutta High Court.
Thus, stock exchanges provide an efficient way for the best stock brokers in India to trade in-in equity. It has an algorithm that determines the prices of stocks based on the trading volume, and these prices change pretty fast.
