CONCEPTS AND TERMS INVOLVED

THE INDIAN SHARE MARKET IS RELENTLESSLY SWINGING UPWARDS IN RECENT YEARS,WHAT WILL THE SENSEX BREACHING THE 14K MARK THIS YEAR.
NOW WHENEVER YOU READ LINES AS THE ONE ABOVE,YOU GRASP ONLY SAY HALF OF IT.MANY OF US DO NOT UNDERSTAND WHAT SENSEX,NIFTY,DEMAT,etc IS ALL ABOUT.
SO LETS TRY AND FIGURE OUT ALL THESE TERMS ONE BY ONE.
THOUGH THE TERMS SEEM QUITE INTRICATE THEY ARE PRETTY EASY TO UNDERSTAND,THE FACT IS THAT YOU JUST NEVER TRIED.

OK SO LETS GO ONE BY ONE

1.SHARE MARKET OR STOCK EXCHANGE:
THIS IS THE PLACE WHERE ALL TRANSACTIONS RELATED TO SHARES (LIKE BUYING OR SELLING) ACTUALLY TAKE PLACE.IN OTHER WORDS SHARE MARKET IS A SHOP WHICH DEALS IN SHARES.
THERE ARE TWO BIGGEST SHARE MARKETS IN INDIA viz NSE (NATIONAL STOCK EXCHANGE ,DELHI) AND BSE(BOMBAY STOCK EXCHANGE, MUMBAI)

2.BROKERS:
THE TRANSACTIONS IN THE SHARE MARKET INVOLVE A TURNOVER OF HUNDRED,THOUSANDS OF CR ORES.COMMONERS LIKE US CAN'T REALLY BE A PART OF THESE HUGE TRANSACTIONS.SO THERE ARE MEDIATORS WHO BUY/SELL SHARES IN A HUGE AMOUNT FROM THE EXCHANGE AND IN TURN BUY/SELL SMALLER QUANTITIES TO PEOPLE LIKE US.
SO IF WE TERM THE STOCK EXCHANGE AS A WHOLESALE DISTRIBUTOR,THEN THE BROKER IS A RETAILER.
IN SHORT BROKER IS THE LINK BETWEEN COMMON INVESTORS AND THE STOCK EXCHANGE.

WELL TH ATS IT AS OF NOW,BUT THERE IS A SMALL ACTIVITY FOR YOU GUYS.PICK UP ANY NEWSPAPER AND GO TO ITS BUSSINESS PAGE,SEE IF YOU FIND SOME TERMS LIKE DEMAT,EQUITY,IPO,PAN,ETC.WE WILL TAKE THEM UP SOON,JUST IN CASE YOU FIND OUT WHAT THEY ARE THEN YOU MAY JUST RECTIFY ANY MISTAKE OF MINE.