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Showing posts with the label Types and Functions of stock market

Key Players Shaping the Stock Market Ecosystem: Roles and Functions. Lesson 5

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Section 1: Start Your Stock Market Journey: Simple Lessons from A to Z. Lesson 5:  Key Players Shaping the Stock Market Ecosystem: Roles and Functions   💹Key Players In Stock Market Ecosystem. Securities and Exchange Board of India (SEBI): Established in 1988, regulates financial markets in India. Promotes the securities market, protects investors, and oversees market activities. Frames rules, monitor stock and commodity exchanges, prevents manipulation, and regulates participants. Stock Exchanges: Connect buyers and sellers, and facilitate stock trading. Main exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Other operational exchanges: Calcutta Stock Exchange, Metropolitan Stock Exchange, etc. Depositories: National Securities Depository Limited (NSDL) and Central Securities Depository Limited (CDSL) store dematerialized shares in demat accounts. Depository Participants (DPs): Registered intermediaries between investors and ...

Diverse Dimensions of Financial Markets: Classification and Functions. Lesson 4

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Section 1: Start Your Stock Market Journey: Simple Lessons from A to Z. Lesson 4:  Diverse Dimensions of Financial Markets: Classification and Functions. Classification of Financial Markets: 💹A simple chart to understand the hierarchy of the Market. By Nature of Claim: Debt Market: Involves buying and selling debt instruments like bonds and debentures. These instruments offer a fixed claim on the issuing entity's assets. Equity Market: Involves trading stocks of public limited companies. Investors become shareholders with a residual claim on company assets. By Maturity of Claim: Money Market: Trades short-term monetary assets like treasury bills and certificates of deposit, with an investment horizon not exceeding a year. Low risk and interest-based returns. Capital Market: Trades medium to long-term assets like equity shares, suitable for holding over an extended period. Divided into primary and secondary markets . By Timing of Delivery: Cash Market: Real-tim...