Indian Stock Market: Participants and Roles

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Who is responsible for facilitating the sale and purchase of stocks between buyers and sellers?

Stock Exchange

What is the primary role of a stock broker in the Indian stock market?

Acting as a middleman or agent between sellers and buyers of stocks

What is the function of a depository in the trading of securities?

Holding securities in electronic or dematerialized form and transferring ownership of shares

What is the purpose of a Clearing House in the Indian stock market?

Ensuring the orderly settlement of trades executed on various stock exchanges Signup and view all the answers

What are investors also known as in the Indian stock market?

Stockholders or shareholders Signup and view all the answers

Who licenses stock brokers to trade at the stock exchange?

Securities and Exchange Board of India Signup and view all the answers

What was the Bombay Stock Exchange initially known as?

The Native Share and Stock Brokers Association Signup and view all the answers

In what year did the Bombay Stock Exchange receive permanent recognition?

1956 Signup and view all the answers

What is the name of the fully automated computerized mode of trading introduced by the Bombay Stock Exchange in 1995?

BOLT (BSE Online Trading) Signup and view all the answers

What is the primary objective of the National Stock Exchange (NSE) as mentioned in the text?

To establish a nation-wide trading facility for all types of securities Signup and view all the answers

What is the time period during which trading is conducted on the Bombay Stock Exchange?

Between 9:15 am and 3:30 pm from Monday to Friday Signup and view all the answers

How many companies are listed on the Bombay Stock Exchange as of January 2023?

5,311 Signup and view all the answers

What is the capital market segment of the exchange known for?

A fully automated screen-based trading system known as the NEAT Signup and view all the answers

Which regulatory body does the Multi Commodity Exchange of India Limited (MCX) operate under?

Securities and Exchange Board of India (SEBI) Signup and view all the answers

What is the highest traded item on the MCX?

Gold Signup and view all the answers

What is the purpose of a stock market index?

To capture the behavior of the overall market and act as a barometer for market behavior Signup and view all the answers

What is MCX COMDEX?

India's first and only composite commodity futures price index Signup and view all the answers

What are the characteristics of a market index?

It acts as a barometer for market behavior and is used to benchmark portfolio performance Signup and view all the answers

What are the types of documents required for address proof to open a Demat account?

Ration card, passport, voter ID card, driving license, bank passbook, electricity bill, self-declaration from the High Court or Supreme Court, identity card or address proof given by recognised authority. Signup and view all the answers

What is the first step in placing a buy order in the share market for equity?

Selecting the exchange as BSE or NSE. Signup and view all the answers

What happens when you choose a market order in the share market?

You buy the equity at the market price, which is the current price at which the equity is selling in the market. Signup and view all the answers

What is the purpose of the 'Price' field in the order placement process?

To enter the specific price at which the buyer wants to buy the equity, in case of a limit order. Signup and view all the answers

What is the significance of the 'Dis. Quantity' field in the order placement process?

It should be equal to or less than the quantity specified in the 'Qty' field. Signup and view all the answers

What is the final step in placing a buy order in the share market?

Clicking the 'Place Order' button. Signup and view all the answers

What is a brokerage account and what can you trade using it?

A brokerage account allows you to buy and sell various financial instruments such as stocks, bonds, mutual funds, currency, futures, and options contracts, depending on the broker. Signup and view all the answers

What is a trading platform, and what are its basic functions?

A trading platform is an online portal that enables you to place orders, view metrics and charts, and manage your accounts, with varying scope, power, and flexibility. Signup and view all the answers

Why might some investors prefer to trade through a broker's office rather than online?

Some investors might prefer to trade through a broker's office because they want verbal guidance, which can boost their confidence in making investment decisions. Signup and view all the answers

What are some of the benefits of working with a broker?

Brokers can provide guidance on share selection, stop orders, short selling, and other aspects of dealing with shares, which can boost an investor's confidence. Signup and view all the answers

Why might investors be skeptical about trading online?

Investors might be skeptical about trading online due to the high volatility of the equities and derivatives markets. Signup and view all the answers

What is the role of a broker in guiding investors?

A broker guides investors on share selection, stop orders, short selling, and other aspects of dealing with shares. Signup and view all the answers