Microeconomic Study of Indian Stock Market
A Microeconomic Study of the Indian Stock Market
A brief overview of the Indian stock market 3
Purpose of the stock exchange 3
PRIMARY MARKET 3
SECONDARY MARKET 4
Role of ‘Supply and demand’ on the stock price movement 4
EVOLUTION OF MARKET STRUCTURE AND THE SELF REGULATORY APPROACH 5
Traditional structure of the stock exchanges: 5
Changes in the market structure and demutualization: 5
Stock Markets as Perfectly Competitive markets: 6
Transaction Costs in the present day stock markets: 6
Current transaction costs: 7
Importance of Risk in Stock market: 7
Utility Analysis 9
Stock Market Risks at different levels: 11
Simplistic methods to Mitigate Risk: 11
Types of Different Risks in Stock Market: 11
A brief overview of the Indian stock market
The origin of the stock market in India goes back to the end of the eighteenth century when long-term negotiable securities were first issued. However, for all practical purposes, the real beginning occurred in the middle of the nineteenth century after the enactment of the companies Act in 1850, which introduced the features of limited liability and generated investor interest in corporate securities.
An important early event in the development of the stock market in India was the formation of the native share and stock brokers 'Association at Bombay in 1875, the precursor of the present day Bombay Stock Exchange. This was followed by the formation of associations/exchanges in Ahmadabad (1894), Calcutta (1908), and Madras (1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. Bombay Stock Exchange (BSE) was the major exchange in India till 1994.National Stock Exchange (NSE) started operations in 1994. NSE was primarily setup after the Harshad Mehta scam which surfaced in 1992.
Purpose of the stock exchange
The purpose of
A brief overview of the Indian stock market 3
Purpose of the stock exchange 3
PRIMARY MARKET 3
SECONDARY MARKET 4
Role of ‘Supply and demand’ on the stock price movement 4
EVOLUTION OF MARKET STRUCTURE AND THE SELF REGULATORY APPROACH 5
Traditional structure of the stock exchanges: 5
Changes in the market structure and demutualization: 5
Stock Markets as Perfectly Competitive markets: 6
Transaction Costs in the present day stock markets: 6
Current transaction costs: 7
Importance of Risk in Stock market: 7
Utility Analysis 9
Stock Market Risks at different levels: 11
Simplistic methods to Mitigate Risk: 11
Types of Different Risks in Stock Market: 11
A brief overview of the Indian stock market
The origin of the stock market in India goes back to the end of the eighteenth century when long-term negotiable securities were first issued. However, for all practical purposes, the real beginning occurred in the middle of the nineteenth century after the enactment of the companies Act in 1850, which introduced the features of limited liability and generated investor interest in corporate securities.
An important early event in the development of the stock market in India was the formation of the native share and stock brokers 'Association at Bombay in 1875, the precursor of the present day Bombay Stock Exchange. This was followed by the formation of associations/exchanges in Ahmadabad (1894), Calcutta (1908), and Madras (1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. Bombay Stock Exchange (BSE) was the major exchange in India till 1994.National Stock Exchange (NSE) started operations in 1994. NSE was primarily setup after the Harshad Mehta scam which surfaced in 1992.
Purpose of the stock exchange
The purpose of