I AM HELPLESS TO KNOW

Secondary Mkt 748 views 3 replies

gaurav

trainee ca final and cfa student

80 Points Joined December 2009

HEY DEAR FRIENDS, CAN ANYONE TELL ME ,WHY IS THE DIFFERENCE IN RATES OF A STOCK/SHARE PRICE IN DIFFERENT EXCHANGES??? FOR EXAMPLE :- SHARE OF BHARTI AIRTEL IN BSE IS RS.609.87 & IN NSE IT IS RS.605, WHY IS IT????

Replies (3)

Ashish

Student

144 Points Joined December 2007

Yeah also wanna know abt this .....

Guest

Demand of stocks in diffrnt market is variable...

For example the price of Wheat in one market is diffrnt in another market ...so diifrnt diffrnt market has diffrnt prices...so

Its depend in demand & supply of stock in each market ...

Bijoy N.Momaya

www.RupeeResearch.com (Eqty Advisory & S

477 Points Joined September 2008

Rightly said by ketan sir. The rates may differ in two different exchange boards.

Let me put it in a simple way. Rates of a fruit Apple differ in different fruit markets. Similarly u find the rate differences in different exchange board.

You may buy it in BSE where the rate is 605 and sell it in NSE where the rate is 609. It is called as Arbitrization. Its very risky sometimes as the rates in other exchange may not favour when u want to sell it. Ask about this to your broker. He will explain u the things practically.

Thanks & Regards, Bijoy - ProfitControl