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What is Stock Exchange

What is stock exchange ?

Stock Exchange is a market place where stock or share, derivatives and other financial instruments are traded. In today’s date all major exchange provide online trading where any investor can buy or sell stocks online. Two biggest stock exchanges in India are NSE and BSE.


List of worlds top stock exchanges:



Stock Exchange

Market Capitalization
USD Billions)

Trade Value
(USD Billions)

1  United States NYSE Euronext 14,242 20,161
2  United States NASDAQ OMX 4,687 13,552
3  Japan Tokyo Stock Exchange 3,325 3,972
4 United Kingdom London Stock Exchange 3,266 2,837
5 China Shanghai Stock Exchange 2,357 3,658
6 Hong Kong Hong Kong Stock Exchange 2,258 1,447
7 Canada Toronto Stock Exchange 1,912 1,542
8 Brazil BM&F Bovespa 1,229 931
9 Australia Australian Securities Exchange 1,198 1,197
10 Germany Deutsche Börse 1,185 1,758
11 Switzerland SIX Swiss Exchange 1,090 887
12 China Shenzhen Stock Exchange 1,055 2,838
13 Spain BME Spanish Exchanges 1,031 1,226
14 India Bombay Stock Exchange 1,007 148
15 South Korea Korea Exchange 996 2,029
16 India National Stock Exchange 985 589
17 South Africa JSE Limited 789 372
18 Russia MICEX 771 514



We’ve two nationalized stock exchanges in India:

National Stock exchange

The National Stock exchange of India is world’s 16th largest stock exchange located in Mumbai, Maharashtra. It was incorporated in Nov. 1992 and commenced operations in Nov. 1994. The trading time is in between 9:15 am to 3.30 pm, Saturday, Sunday and national holidays are off.

NSE has a market capitalization of around US$ 985 billion. Till dec’2011 over 1640 stocks were listed on the exchange. The major index of NSE is S&P CNX NIFTY, normally known as NIFTY 50.

Bombay Stock Exchange

The Bombay stock exchange is oldest exchange in Asia and rank 14th in the world. It was started in early 1830’s in Mumbai by cotton traders. However, SENSEX got compiled in 1986. SENSEX is the key index of BSE. There are over 5112 companies listed on BSE till Dec’2011. The market trading period is 9:15 am to 3:30 pm.

How we trade in stock exchange?

If you want to trade online you need to open a Bank Account, Trading Account and DMAT Account. You need to furnish certain documentations and these are regulatory norms. All the formalities can be done through a stock broker.





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Pravin Khetan
About the Author
Pravin Khetan is Co-Founder of iPlan Education. He is an investment & risk consultant and possess quality experience in training management students and professionals.

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