INTRODUCTION Stock markets refer to a market place where investors piece of tail buy and sell simple eyes. The price at which each buying and selling transaction hires is conciliated by the market forces (i.e. accept and supply for a particular strain). Let us take an example for a better understanding of how market forces determine stock prices. alphabet Co. Ltd. enjoys high investor confidence and there is an outlook of an upward movement in its stock price. More and more than people would want to buy this stock (i.e. high demand) and precise few people go away want to sell this stock at current market price (i.e. less supply). Therefore, buyers will grant to bid a higher price for this stock to match the ask price from the seller which will enlarge the stock price of ABC Co. Ltd. On the contrary, if there argon more sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd. in the market its price will fall down. In earlier times, buyers and sellers used to assemble at stock exchanges to launch a transaction but now with the dawn of IT, virtually of the operations are done electronically and the stock markets have become almost paperless. Now investors dont have to gather at the Exchanges, and can trade freely from their home or office over the phone or through Internet.
The Securities Contract Regulation Act, 1956, under Section-2(j) defines stock exchange. A stock exchange thus, imparting marketability & liquidity to securities, encourages investments in securities & assists corporeal growth. Stock exchange is regarded as an essential concomitant of the private-enterprise(prenominal) system of economy. It is indispensable for the proper functioning of corporate enterprise. It brings together large amount of capital infallible for the economic mount of a country. It is citadel of capital & the pivot of money market. It provides necessary mobility to capital & directs the flow of capital into profitable & successful enterprises. It is the barometer of superior general economic progress in... If you want to get a to the full essay, order it on our website:
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