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Basic Terminology of the Stock Exchange

Investment in the stock market is full of risk,and you are investing your hard-earned money in it. With proper knowledge and patience, you can be “The Big Bull” of the market. But before diving into the market, first you need to understand the basic terminology that is used frequently in the market.

Stock Market

The stock market is a place where stocks or shares of companies are bought and sold.

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Agent

An agent is a person who can advise you about the stocks you should buy, sell, or hold to gain maximum profit from your invested money. He is not involved in the transaction process.

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Broker

A broker is a person who buys and sells shares on your behalf, and in return, they charge a certain amount of money called a commission or fee.

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BSE

The Bombay Stock Exchange, Asia's oldest stock exchange, was founded in 1875 on Dalal Street in Mumbai. It is known for having the largest number of companies listed on its stock exchange.

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NSE

The National Stock Exchange was established in 1992 by the Indian government as the first electronic exchange in the country. It aimed to provide simplified solutions for interested parties.

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Stock Exchange Sensitive Index

The full form of SENSEX is Stock Exchange Sensitive Index and it is the oldest stock exchange in India and is also termed as BSE. It is a free float, economy-weighted index of 30 financially sound and very well-established companies listed on BSE.

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