हिंदी

Capital Market - Secondary Market/Stock Exchange

Advertisements

Topics

Estimated time: 8 minutes
CBSE: Class 12

Meaning

  • Secondary market is also called stock exchange or stock market.
  • It is a market for existing or second-hand securities.
  • Stock exchange provides a platform to buy and sell securities.
CBSE: Class 12

Historical Developments

  • To create interest in corporate securities, the Government of India introduced the Companies Act in 1850.
  • The first stock exchange started in Bombay in 1875 as ‘The Native Share and Stock Brokers Association’.
  • This exchange was later renamed Bombay Stock Exchange (BSE).
  • Later, stock exchanges were also set up in Ahmedabad, Calcutta and Madras.
CBSE: Class 12

Structure of Indian Secondary Market

  • Before the 1990s, Indian secondary market had only regional stock exchanges.
  • After the 1991 economic reforms, the Indian Stock Market became a three-tier system.
  • The three tiers are: Regional Stock Exchanges, National Stock Exchange and Over The Counter Exchange of India (OTCEI).
CBSE: Class 12

Key Points: Secondary Market/Stock Exchange

  • Secondary market is the stock exchange / stock market.
  • It deals in existing or second-hand securities.
  • Stock exchange is a platform for trading securities.
  • Companies Act 1850 was introduced to promote investment in corporate securities.
  • First stock exchange: Bombay, 1875, later called BSE.
  • Other exchanges came up in Ahmedabad, Calcutta and Madras.
  • Post-1991, Indian secondary market has a three-tier structure: Regional Stock Exchanges, NSE and OTCEI.

Video Tutorials

We have provided more than 1 series of video tutorials for some topics to help you get a better understanding of the topic.

Series 1


Series 2


Shaalaa.com | Financial Market 3

Shaalaa.com


Next video


Shaalaa.com


Financial Market 3 [00:11:54]
S
Series: 1
0%


Advertisements
Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×