BSE (Bombay Stock Exchange), If you are thinking of trading in share market or you are just learning about share market. So you must have heard the name of BSE many times. So in today’s post, we will give information about this. Today we will know what is BSE. How does this work? And some basic information about it that you should know, if you want to go to share market. What is the full form of BSE?
What is BSE
Full form of BSE is Bombay stock exchange Bombay Stock Exchange is an exchange. And it is the oldest exchange in India as well as Asia continent, it was established in 1875 in the city of Mumbai. And its MD & CEO is Ashish Kumar Chauhan ji, and the market capital of BSE is around $1.43 trillion.
What is the work of BSE and how does it work
Trading of Equity, Derivatives, Commodity and Currency etc. takes place on the BSE exchange. Around 4000 companies are listed on BSE exchange and they are continuously traded. The Sensex index is given the highest popularity by the logo on the Bombay Stock Exchange.
The Sensex Index is an index of the Bombay Stock Exchange, consisting of 30 companies. In which the shares of 30 leader companies from about 13 different sectors of India have been made by mixing. In this, only those shares can be listed whose truck record is good, and they are the leaders of their sector in the market and whose market capital is good.
And the best considered index in BSE is Sensex. Sensex plays an important role in running BSE, because whoever trades or invests in BSE.
The way people recognize NSE by the name of Nifty 50, in the same way some people know Bombay Stock Exchange by the name of Sensex 30 index. The Bombay Stock Exchange is the first exchange to introduce equity derivatives, also called futures and options or F&O in short.
This exchange was initially known as Mumbai Stock Exchange, and in 2002 it was renamed from Mumbai Exchange to Bombay Exchange ie BSE in short. And since then till now it is known by the name of BSE.
If you want to take a stake in any company or buy shares of that company, then for that you have to open a trading account and demat account with any broker. And you can buy or sell shares of any company only through your broker.
When you ask the visiting broker to buy, he buys the shares you have specified. And when you ask him to sell, he sells your shares. And it does this buying and selling through broker exchanges, BSE is an important part of the Indian capital market.
Apart from being the oldest exchange, it is spread across more than 500 cities. Equity, commodity, currency and derivatives are traded on the BSE exchange. If any investor wants to invest in the shares of any company listed on the Bombay Stock Exchange. So first of all he has to place order through market order on his broker’s platform. So BSE automatically matches your order with another market order through computer. And if there is a match then your order is placed by BSE, if the order does not match then your order gets cancelled.
That is, when you are buying any share, someone is also selling it. So if both the buy or sell orders are placed simultaneously, then only your order is executed. And all these things are managed by the BSE exchange, and the identity of the buyer and seller is hidden in it. BSE does all this work, and it is also its responsibility.
Whenever any company needs any big fund, or has to get its company listed on BSE exchange. So in this case the company issues its IPO and that is done through BSE only. And people invest their money in it. And later that company is listed on the BSE exchange and all people take or trade their share in its shares.
And let me tell you for information that all the exchanges of the stock market NSE and BSE open at 9:15 am. And it closes at 3:30 Pm on Saturday, in between all the trades are placed and closed on BSE.
In this article you learned what is BSE and BSE full form. We hope this information will prove useful for you.