Describe the organisation and working of stock exchanges in india
Answers
There are primarily two stock exchanges in India, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).The "share market" is a virtual entity, that is constituted by stock exchanges, brokers, investors and traders.
There are two major stock exchanges in India; BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
Investors and traders send in their orders through online terminals or by phone to their respective brokers. These exchanges receive buy and sell orders from brokers.
When there is match (via computer systems) of security (share, future, option), quantity and price between a buy order and sell order, the exchange executes the trade. Earlier this matching used to be done manually by brokers' representatives on the "trading floor".
Once a trade is executed, the price of the security is recorded as the "Last Traded Price (LTP)" or "Current Market Price (CMP)". Confirmation is sent to the respective brokers who in turn send confirmation of trade to their respective clients.