Why we have 2 stock exchange in india?
A stock exchange is an organization which provides trading facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that bonds are traded. Increasingly, stock exchanges are part of a global market for securities. More, There is not only two stock exchanges in India.. In each big town, there is a stock exchange (even there is less transactions).. BSE and NSE are the biggest stock exchanges in India where almost all big companies were listed their shares. The purpose of issuing shares to public to colect their money to meet company’s working capital requirements. If the
Earlier there was no on line trading. Each city is having its own exchange. Madras Exchange, Calcutta Exchange, Hyderbad exchange etc. One has to submit physical shares to the nearest exchange or deal with it. Bombay Exchange is the largest and most active of all. Subsequently NSE was formed. All the regional exchanges either merged with NSE or died themselves.
