RISK MANAGEMENT - Learn Before Enter in Stock Market

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 RISK MANAGEMENT - Learn Before Enter in Stock Market              Risk management is a crucial aspect of investing in the share market. It involves strategies and techniques to minimize potential losses and protect your capital. Here are some key principles of risk management in the share market: Diversification: Diversify your portfolio by investing in a variety of stocks or other securities across different sectors, industries, and regions. This helps to reduce the impact of any individual stock or sector's performance on your overall portfolio. Asset Allocation: Allocate your investment capital across different asset classes, such as stocks, bonds, cash, and other instruments, based on your risk tolerance and investment goals. This can help balance risk and potential returns. Stop-Loss Orders: Implement stop-loss orders to automatically sell a stock if it reaches a predetermined price level. This helps limit potential losses by exiting a po...
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History of Indian Share Market / Stock Exchange

History of Indian Share Market / Stock Exchange.

          The history of the Indian share market can be traced back to the 19th century during the British colonial period. Here is a more detailed overview of the key milestones and developments in the Indian share market history:



Early Beginnings: The roots of the Indian share market can be traced back to the 1850s when trading in shares and securities began in Mumbai. The trading activities primarily took place in open spaces such as under the banyan tree opposite the Town Hall, where stockbrokers would gather to conduct transactions.

Formation of Stock Exchanges: The first formal stock exchange in India, the Bombay Stock Exchange (BSE), was established in 1875 as "The Native Share and Stock Brokers' Association." It provided a regulated platform for trading stocks and shares. The BSE is the oldest stock exchange in Asia.



Stock Market Regulation: In 1956, the Government of India passed the Securities Contracts (Regulation) Act, which aimed to regulate and control the securities markets in the country. This legislation established the Securities and Exchange Board of India (SEBI) in 1988 as the regulatory authority for the Indian stock market.

Computerization of Trading: In 1994, the BSE introduced a computerized trading system called BOLT (BSE OnLine Trading). This replaced the open outcry system and allowed for faster and more efficient trading. The National Stock Exchange (NSE), established in 1992, also introduced a similar electronic trading system.



Foreign Institutional Investment (FII): In the early 1990s, India began liberalizing its economy and opening up to foreign investments. This led to an increase in Foreign Institutional Investment (FII) in the Indian stock market, bringing in significant capital and boosting market liquidity.

Derivatives Trading: In 2000, trading in index futures was introduced in the Indian stock market. This was followed by the introduction of index options in 2001. The introduction of derivatives trading provided investors with additional tools for risk management and speculation.

Demutualization of Stock Exchanges: In the late 1990s and early 2000s, both the BSE and NSE underwent the process of demutualization. This involved separating ownership and management from trading rights, leading to greater transparency, efficiency, and corporate governance in the stock exchanges.

Growth and Market Reforms: The Indian share market has witnessed significant growth over the years. Various market reforms and initiatives, such as the introduction of online trading, dematerialization of shares, improved regulations, and investor education programs, have contributed to the development of a more robust and transparent market.

Market Indices: The BSE Sensex and NSE Nifty are the two prominent benchmark indices that track the performance of the Indian stock market. These indices provide an overview of the overall market sentiment and serve as indicators of market performance.

Continued Evolution: The Indian share market continues to evolve with the adoption of advanced technologies, the introduction of new products and instruments, and the integration of global market practices. The market has witnessed increased participation from domestic and foreign investors, and it remains an essential component of the Indian economy.


K. D. SAWANT

MFD (AMFI Reg.)

7397977367

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