1]. Stock Market : This refer's to the overall process & system that allows and facilitates investor in buying & selling stock's amount themselves. It's the general enviroment where stock transaction occur.
•Popose:
1. Participant's : insssores, investor, Broker's , Market mekars etc.
•Functionality: Liquidity, pricess, capital formation, Risk management, components, etc.
2]. Stock Exchange : A stock exchange is the actual intermediary that connects buyers with seller's. Stock exchange is amore definedentily, often a physical or virtual Market place.
Exchange Include :
1. Role as intermediary
2. Centralized Treding
3. Listing Requiements
4.Regulation & oversight
•Type of Exchange:
1. Physical exchange:- Historically exchange had trading floors.
2. Electronic exchange:- These exchange operate entirely through computer network.
3]. Stock Index :- A stock index is a numerical representation of a group of stocks that is used to tract there collective performance.
~Breakdown of stock index:
• purpose:
1. Market barometer
2. Performance benchmark
3. Econmic indicator
4. Basis for Finacial products
• Composition:-
1. Market capitalization
2. Industry sectore
3. Geographic region
4. Exchange listing
• Calculation Methods:-
1. Price-weighted
2. Equal-weighted
• Examples of Major index
-Dow jones industrial average (DJIA)
-S & P 500
-Nasdaq composite FTSE 100
-Nifty 50/sensex.
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