AL-BARKAAT STOCKS & SHARES.  KNOWLEDGE CENTER.

Earlier ,the share market did not have  the reputation of being safe and friendly for beginners .most people thought investing in shares “….is not for me!”

Happily enough ,today the share market is much more safe and reliable . three changes last ten-odd years have completely changed the scenario.

The first was the advent of National Stock Exchange in 1994, which brought about electronic trading,a practice which other exchanges soon followed. This brought in not only speed, and also a great amount of transparency . It also ensured that fly-by-night brokers could not cheat individual investors.

The second change was the dematerialization of shares (demat) in 1996 which ended the chances of share-transfer  fraud whereby someone could buy and sell a counterfiet of your share.

The third was  the internet  revolution and the evolation of online trading due to which the investors today have a convenient  way of getting a complete control over  their investment  at the click of a button.

However ,despite these changes  the older, ‘risky’ image of the stock marker has still  lingered on in people’s mind . These fears - most  of which are baseless – have prevented people reaping the rich rewards that the market can offer for intellilgent investors.

Consider  this, if you have invested Rs100,000 in a bank FD in 1980,then at an annual return of 9% ,it could become Rs862,000 by the year 2005.but that same money invested in stock market at 17% p.a rate of return could have become Rs50,65,000.These are real rate of returns earned on bank FD(9.0%) and shares (17%) between  1980 and 2005 mentioned in RBI’s Handbook of Statistics,NCDEX.

Which is why we thought that we should create awareness about share market ,especially for those who are new to investing in shares.

WORLD STOCK MARKETS.

 

A stock market is a public market for the trading of companystock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

The size of the world stock market was estimated at about $36.6 trillion US at the beginning of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value, 11 times the size of the entire world economy. The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event not occurring.). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price.

The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. The stock market in India includes the trading of all securities listed on the SENSEX , the NIFTY  as well as on the many regional exchanges, e.g. HSE,MSE. European examples of stock exchanges include the London Stock Exchange, the Deutsche Börse