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Indian Stock Market: Participants and Roles
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Indian Stock Market: Participants and Roles

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Questions and Answers

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?

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

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

<p>Stockholders or shareholders</p> Signup and view all the answers

Who licenses stock brokers to trade at the stock exchange?

<p>Securities and Exchange Board of India</p> Signup and view all the answers

What was the Bombay Stock Exchange initially known as?

<p>The Native Share and Stock Brokers Association</p> Signup and view all the answers

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

<p>1956</p> 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?

<p>BOLT (BSE Online Trading)</p> Signup and view all the answers

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

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

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

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

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

<p>5,311</p> Signup and view all the answers

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

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

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

<p>Securities and Exchange Board of India (SEBI)</p> Signup and view all the answers

What is the highest traded item on the MCX?

<p>Gold</p> Signup and view all the answers

What is the purpose of a stock market index?

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

What is MCX COMDEX?

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

What are the characteristics of a market index?

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

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

<p>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.</p> Signup and view all the answers

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

<p>Selecting the exchange as BSE or NSE.</p> Signup and view all the answers

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

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

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

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

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

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

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

<p>Clicking the 'Place Order' button.</p> Signup and view all the answers

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

<p>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.</p> Signup and view all the answers

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

<p>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.</p> Signup and view all the answers

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

<p>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.</p> Signup and view all the answers

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

<p>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.</p> Signup and view all the answers

Why might investors be skeptical about trading online?

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

What is the role of a broker in guiding investors?

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

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