How does Bombay Stock Exchange work?

Hello, guys ,

Welcome all of you to our website। Today on our website we are going to talk about an institute which has waved the shadow not only of our country but of the entire world । Today we are going to know about Bombay Stock Exchange।

Bombay Stock Exchange Well, you all must be aware that it is the oldest stock exchange in our country but along with it it is also the old stock exchange of Asia and the 3rd oldest stock exchange in the world ।

So come on, friends, let us go on this journey today where we see the whole story of Bombay Stock Exchange।

History

Bombay Stock Exchange was started in 1834। Where some brokers started their trading business। This business continued in this manner for almost 40 years and in 1985 the Bombay Stock Exchange named today was registered under the name of an association। Which was named The Native Stock and Share Broker Association ।

After this, the next important link in this was made in 1921 when the Clearing House was started by The Bank of India, after this, as you know, our country got independence in 1947, the new government came। Till 1955, the five-year plan was run by Nehruji whose vision was only on agriculture ।

Origin of the word Sensex

Mr. Deepak Mohoni, an Indian stock market expert introduced The Sensitivity Index Benchmark Index known as "Sensex। Sensex is an old informant of India and is known as a reflection of the Indian economy।

How does Sensex work?

If the Sensex goes up, it means that the total prices of the 30 stocks included in it have increased।

If the Sensex goes down, it means that, that the 30 stocks included in it have decreased in votes।

How is Sensex calculated?

Initially the index was calculated on the basis of market capitalization method, but since 1 September 2003, Sensex is considered as the best work of the industries used by S&P Dow Jones etc।

1) 30 companies are selected according to the rules applicable in Sensex।

2) determine the free float market capital of 30 shares

3) sum the free float market capital of all 30 shares

Source - Total Free Float Market Capitalization (Minimum Market Capitalization) Index Value

Hence the Sesenx index =(sum total of free float market capital /250/24 cr)*100

Profit

The Securities and Exchange Board of India regulates stock exchanges in India । Watchdog monitors the functioning of the stock market to ensure the safety of investors।

Stock exchanges offer investors a diverse range of stock options from domestic and multinational companies।

Through the stock exchange, investors can liquidate their shares at any time depending on their convenience।

Investors do not need to worry about theft of their funds while investing through the stock exchange ।

Conclusion

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-Abhilasha Deshpande