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vishakha sharma (Querist)

18 August 2013 Hello sir....I m a btech student...
I want to know about stock exchanges... plz tell me how BSE works, whats it motive, n how to calculate capital exchange and what is SENSEX???
Regards..

Ankit

Ankit (Expert)

18 August 2013 Dear Vishakha,

BSE stands for Bombay Stock Exchange.
companies are artificial persons and the owners of the company hold shares of that company.

Now people may want to sell off the shares of that company and cease to be the owners...or someone may want to purchase the shares and become owners of the company.

you know it becomes difficult to find the buyers and seller. hence, companies get themselves listed on BSE and NSE and other SE ofcourse.

SENSEX, is the weighted average of the 30 stocks..the imprtant ones representing each sector of the industry..such as automobiles, finance, banking, engg, real estate etc)

so SENSEX is a representative index of how the whole market is performing. since it has best stocks from every sector, it gives a birds eye view of the whole market.

i have just tried to give an overview...so if you have any questions...please feel free to ask..:)

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