Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading floor. You’ve probably seen pictures of a trading floor, in which traders are wildly throwing their arms up, waving, yelling, and signaling to each other. The other type of exchange is virtual, composed of a network of computers where trades are made electronically.

The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing.

BSE & NSE -INDIA

The BSE, formerly known as the Bombay Stock Exchange Ltd., is an Indian stock exchange located at Dalal Street, Mumbai. Established in 1875, it is Asia’s oldest stock exchange. The BSE is the world’s 10th largest stock exchange with an overall market capitalization of more than US$2.2 trillion on as of April 2018.

National Stock Exchange of India Limited is the leading stock exchange of India, located in Mumbai, Maharashtra. NSE was established in 1992 as the first dematerialized electronic exchange in the country.

  • Invest in approximately 20 to 30 stocks in at least six to eight sectors with different investment characteristics.
  • No more than 20% of the total value of your stock portfolio should be in any one sector.
  • No more than 10% of the total value of your stock portfolio should be in any one stock.
  • You should invest a minimum of approximately 3% to 4% of the total value of your stock portfolio in each stock.

Deciding which stocks to invest in can be difficult, especially if you have a low tolerance for risk. That’s why it’s important to define one’s financial goals and how much risk can be tolerated. Research stocks that fit within your strategy and invest in stocks that have the potential to help you meet your specific goals, whether you want investment growth, income, or a combination of the two.

Your Financial Advisor can provide you with a wide range of stock investing services, including:

  • Asset allocation strategy development
  • Individual stock selection
  • Help in deciding when to buy and sell your stocks