Commodity Market Terms
Investors who plan to trade in the Stock Market may be wondering what the basics of Stock trading are. Investors who want to trade in the Stock Market must understand the following basic conditions.
What’s the Stock Market?
Stock Market is an open-source public market that allows the trading of shares of companies listed on the Exchanges like NSE or BSE, which are the largest Stock Exchanges in India.
What’s a Share?
The basic unit of a Stock Market is the share. It is the only unit that a company can offer the public. A share is an integral part of the company. This makes it valuable for traders/investors. You will become partners in any company if you purchase shares.
IPO
An Initial Public Offering (IPO) is a way for a company to offer investors the opportunity to become part of the company’s ownership. The company can fix the initial share value.
Exchanges: These are places that offer trading services for brokers who deal in stocks. India has two major exchanges:
1. BSE (Bombay Stock Exchange),: This is the oldest stock exchange in India with more than 4000 scripts. Although not fully automated, progress is being made towards full automation. SENSEX, the main index of BSE, is composed of 30 scripts that come from different sectors.
2. NSE (National Stock Exchange of India): The most advanced Stock exchange in the world, the National Stock Exchange is India’s largest. There are more than 2000 stocks representing different sectors that are listed on the exchange. It is fully automated and high-tech electronic order processing exchange. Nifty, the major index of NSE, is made up of 50 scripts representing different-different sectors.
India has more than 25 exchanges, but they are not as popular as the NSE or BSE.
Types Of Markets:
- Equity Market (includes stock, futures, options and cash)
- Commodity market (MCX and NCDEX).
Two major Indian commodity exchanges are included in the Indian Commodity Market.
Multi Commodity Exchange: This is an Indian commodity exchange that’s free to use. It was established in 2003. MCX can be found trading in a variety of commodities, including Pulses, Crude Oil and Energy, as well as Bullion metals, Non-Ferrous metals, Spices, and Soft commodities.
NCDEX: This is India’s only totality online commodity exchange. It is also a fully automated exchange in India. It was established as a private limited corporation. NCDEX is based in Mumbai, and has over 550 centers across India. NCDEX trades more than 5o commodities and Agri products.
How do the prices of shares depend on
The price of shares can be determined based on their assets, market capacity, and ups or downs in company market prices. This can all be done by the exchange.
How do you invest in the Stock Market?
You must purchase shares from one or more companies in order to invest capital in the Stock Market. These are the things you need to remember before investing in stocks of any company.
-Consult this company’s situation.
Know the future plans and success rates of previous investments.
Keep in touch with company news and updates.
Select a reputable and successful company.
