SOME MORE IMPORTANT TERMS

WELL I THINK YOU MIGHT HAVE DIGESTED THE TWO PREVIOUS TERMS SHARE MARKET AND BROKERS,SO LETS CHUG ALONG AND TRY TO UNDERSTAND SOME MORE .

1.BSE(BOMBAY STOCK EXCHANGE)
THIS IS THE BIGGEST STOCK EXCHANGE IN INDIA AND BEING NAMED BOMBAY STOCK EXCHANGE IS DUELY LOCATED IN BOMBAY(MUMBAI) ONLY.IT WAS FORMED BY SOME TRADERS LONG BACK,BUT NOW IS CLOSELY INSPECTED BY THE GOVERNMENT.

2.NSE(NATIONAL STOCK EXCHANGE)
NSE WAS FORMED BY THE GOVERNMENT 50 YEARS BACK AS A COMPETITOR FOR BSE.IT IS LOCATED IN DELHI.

A COMMON INVESTOR LIKE US CAN INVEST IN ANY OF THE TWO.WE CAN EVEN MAKE USE OF THE DIFFERENCE IN RATE OF A PARTICULAR SHARES IN THE TWO MARKETS AND DECIDE WHERE TO BUY OR SELL.
ITS JUST LIKE TWO SHOPS SELLING/BUYING THE SAME GOOD.WE OBVIOUSLY WILL BUY AT THE ONE WITH A LOWER PRICE AND SELL AT THE ONE WITH HIGHER PRICE.

3.SENSEX:
SENSEX IS THE PERFORMANCE INDEX OF THE BSE. A LIST OF INDIA'S TOP 30 COMPANIES(RELIANCE,TATA,BAJAJ,ETC) IS MADE.PRICES OF THEIR SHARES IS CLOSELY FOLLOWED AND RATED.IF MAJORITY OF THESE SHARES SHOW A RISE IN PRICE THAT DAY THEN THE SENSEX RISES AND VICE-VERSA.

4.NIFTY:
INDIA'S TOP 50 COMPANIES DECIDE THE FATE AS AGAINST 30 AT NIFTY IS THE PERFORMANCE INDEX OF NSE.THE ONLY DIFFERENCE IS THAT AT NSEBSE.

NOW IF YOU HAVE READ NEWSPAPERS OR HEARD BUSINESS NEWS EVEN WITH LEAST ATTENTION THEN YOU MIGHT HAVE REALISED THAT SENSEX IS WAY AHEAD OF NIFTY.(FOR EXAMPLE ON 23/02/2007 SENSEX CLOSED AT 13363 WHILE NIFTY AT 3939).
THIS DIFFERENCE IS BECAUSE BSE WAS FORMED ALMOST A CENTURY BACK SO IT HAS GOT THE LEAD .IF YOU SEE THE RELATIVE PERFORMANCE THEN THEY ARE FAIRLY SIMILAR.

OK ,AS FOR NOW THIS SHOULD MAKE YOU STUDY A BIT.HAVE A LOOK AT THE BUSINESS NEWSPAPERS AND KEEP SOME QUESTIONS READY.
SEND THEM TO ME AT belose_sanket@yahoo.co.in ,I WILL TRY ANSWERING THEM IN THE FOLLOWING POSTS.