Are you curious to start trading in the stock exchange? The stock exchange is an essential component of the capital market and the economy. It facilitates the secure trading of securities systematically. At the stock exchange, investors can buy and sell securities as per well-structured rules and regulations.
Published on 13 February 2023
OPEN A FREE* DEMAT AND TRADING ACCOUNT
IN 15 MINS*
The term securities refer to debentures and shares issued by a public company and bonds and debentures issued by government bodies, municipal, and public bodies.
A stock market can be physical or virtual. One of the top stock exchanges in India, BSE, also known as the Bombay Stock Exchange, is located at Dalal Street in Mumbai. In the past, trading was done here in person and then using telephones. However, with rapid advancements in technology, trading is now online. Participants can buy and sell securities from anywhere in the world.
As the stock exchange plays a major role in the world of finance and business, learning about its functions can be beneficial.
Top 9 Functions of Stock Market
The stock market and stock exchange have a very critical role to play in the trading of stocks & securities across the nation. They help companies to get access to capital needed run & expand their businesses & operations in order to provide their customers with superior quality products and services.
Stock markets play important role in the country's financial system of economy. Major functions of stock markets for investors as well as companies are:
1. Economic barometer
The stock exchange helps in measuring the state of the country’s economy. The pricing of shares fluctuates with every significant change in the country and economy. If the price rises, it indicates boom, whereas if the price falls, it indicates a recession cycle. The exchange is rightly recognised as the economic mirror or pulse of the economy since it reflects the economic condition of the country.
2. Pricing of securities
Based on demand and supply factors, the stock exchange helps to value securities. The securities offered by profitable companies focused on growth tend to have a higher value than other companies’ securities. Appropriate pricing of securities enables investors, creditors, and government organisations to perform their respective functions.
3. Safety of transactions
All companies listed on the stock exchange are well regulated. They must adhere to the legal framework given by the regulator for listing. As a result, it ensures transactional safety. In India, SEBI regulates the trading of securities.
4. Spreading of equity culture
Another function of the stock exchange is encouraging investors by providing information about equity market investments. In addition, it educates people about investment, highlights new issues, and regulates better trading practices.
5. Contributes to economic growth
The stock exchange facilitates buying and selling of securities of various listed companies. The process of buying and selling, or trading, involves continuous reinvestment and disinvestment, which provides an opportunity for capital formation. Therefore, it leads to economic growth.
6. Liquidity
The most vital function of the stock exchange is offering a secure and easy-to-use platform for trading securities. In addition, it instils confidence amongst the investors that they can convert their existing investments into cash. In other words, it provides opportunities for liquidity of the investment. Also Read: What is Equity Investment?
7. Promotes the habits of savings and investment
The stock market exposes investors to attractive investment opportunities with various financial instruments on offer. With these opportunities, investors are motivated to increase their savings and invest in securities of the corporate sector instead of investing in unproductive assets like gold, silver, other metals, etc.
8. Better allocation of capital
The stocks of profit-making companies are actively traded on the stock exchange. The general public is not comfortable investing in securities of loss-making companies. As a result, it is easier for profit-making businesses to raise fresh capital from the equity market. The stock market enables investors to allocate their capital better and generate maximum profit earnings.
9. Provides scope for speculation
When securities are bought solely to profit after price increases to a target, it is known as speculation. Another function of the stock exchange is providing scope for speculation within the provisions of the law in a controlled and restricted manner. Through healthy speculation, the stock exchange ensures the demand, supply, and liquidity of securities.
To Sum it Up
These are the top functions of the stock market that you must know. The stock market plays a crucial role in a country’s economy and contributes to the country’s economic growth. It also helps businesses raise capital for their operations and growth and allows investors to earn profits by trading in securities.
Day trading, also known as intraday trading, is the process of buying and selling securities in the stock market on the same day through a margin account. The objective of day trading online is to lock in profits from the movement of stock prices.
Everything You Need to Know About Volume Indicator
While investing in the stock markets, there are several things that you need to look at. One such factor is the volume of a specific stock being traded at a given point in time. In the stock market, many trade exchanges take place every day. While some investors buy and sell their stocks on the same day, others hold them for a longer period.
Financial markets hold an important place in any economy. They refer to marketplaces wherein financial instruments, such as securities, currencies, commodities, and derivatives, are purchased and sold between investors.
Day trading, also known as intraday trading, is the process of buying and selling securities in the stock market on the same day through a margin account. The objective of day trading online is to lock in profits from the movement of stock prices.
Everything You Need to Know About Volume Indicator
While investing in the stock markets, there are several things that you need to look at. One such factor is the volume of a specific stock being traded at a given point in time. In the stock market, many trade exchanges take place every day. While some investors buy and sell their stocks on the same day, others hold them for a longer period.
Financial markets hold an important place in any economy. They refer to marketplaces wherein financial instruments, such as securities, currencies, commodities, and derivatives, are purchased and sold between investors.
Sharekhan Comtrade Private Limited (TM) operates the web site accessible from the URL www.myespresso.com (the “web site”').
Sharekhan Comtrade Private Limited is committed to protecting your privacy and utilising technology that gives you the most powerful, safe, online experience that you can get anywhere else.
Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.
Sharekhan Comtrade Private Limited requests the minimum information it believes necessary to achieve this goal.
The following discloses Sharekhan Comtrade Private Limited's information gathering and dissemination practices for the Web Site:
System Data:
Sharekhan Comtrade Private Limited uses your IP address to help diagnose problems with our server and to administer the web site. Your IP address is used to identify you and your shopping cart and to gather broad demographic information.
Registration Data:
The Web Site's registration form may require users to give us contact information (like their name, phone number and e-mail address), unique identifiers (like their PAN Number) and demographic information (like their pin code, age or income level). The Web Site uses customer contact information from the registration form to send the users information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Comtrade Private Limited's partners. The customer's contact information is also used to contact the visitor when necessary. Unique identifiers (such as PAN numbers) are collected to verify the user's identity. Demographic and profile data is also collected at the Web Site. We use this data to tailor the visitor's experience at the Web Site, showing them contents that we think they might be interested in, and displaying the contents according to their preferences. This information is shared with advertisers on an aggregate basis.
Links and Co-Branded Sites:
This site contains links to other Web Sites which are not necessarily been screened or reviewed by www.myespresso.com. Sharekhan Comtrade Private Limited is neither responsible for the privacy practices or the contents of such Web Sites nor shall be held answerable for the inaccurate, inappropriate or offensive data, material, information, products and services that may be viewed on those sites.
Sharekhan Comtrade Private Limited may operate a number of co-branded sites. Policies regarding information collection and sharing may differ on some of these co-branded sites. If you have any particular questions, you should check the privacy statement that appears on each co-branded site.
Order Forms:
The Web Site uses an order form for customers to request information, products and services. The Web Site collects visitors' contact information (like their mobile number or e-mail address), unique identifiers (like their PAN number) financial information (like their account or credit card numbers) and demographic information (like their pin code, age or income level). Contact information from the order form is used to send orders, information about Sharekhan Comtrade Private Limited, and promotional material from some of Sharekhan Comtrade Private Limited's partners to the visitors of the Web Site. The visitor's contact information is also used to get in touch with the visitor when necessary. Financial information that is collected is used to check the users' qualifications and bill the user for products and services. Unique identifiers (such as PAN numbers) are collected from Web Site visitors to verify the user's identity.
Surveys and Contests:
The Web Site's online surveys ask visitors for contact information (like their mobile number or e-mail address) and demographic information (like their pin code, gender, age or income level). The Web Site uses contact data from its surveys to send the user information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Ltd.'s partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below. Demographic and profile data is also collected at the Web Site. The Web Site use this data to tailor its visitor's experience at the Web Site, showing them content that it thinks they might be interested in, and displaying the content according to their preferences. This information is shared with advertisers on an aggregate basis.
Sharekhan Comtrade Private Ltd run contests on the Web Site in which we ask visitors for contact information (like their e-mail address). Sharekhan Comtrade Private Limited uses contact data from its contests to send users information about Sharekhan Comtrade Private Ltd. and promotional material from some of our partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below.
Third-Party Advertisement Servers:
Sharekhan Comtrade Private Limited engages the services of an outside advertisement company to display advertisement on the Web Site. These advertisements may contain cookies. While Sharekhan Comtrade Private Limited uses cookies in other parts of the Web Site, cookies received with banner advertisements are collected by the Advertisement company, and Sharekhan Comtrade Private Limited does not have access to this information.
Protection of your Data and Information:
The privacy and protection of your data and information provided to us is of vital importance. Sharekhan Comtrade Private Limited shall ensure to safeguard the security and confidentiality of any information you share with us. Any personally identifiable information of the customers obtained by us shall not be used or shared other than for the purposes to which the customers consents. However security and confidentiality of information cannot be guaranteed cent percent. Hence despite our utmost efforts to protect your personal information, Sharekhan Comtrade Private Limited and www.myespresso.com cannot warrant the security of any information you transmit to us through our online services. Such transmission of your personal information is done at your own risk.
Disclosure of Customer Information :
Sharekhan Comtrade Private Limited and www.myespresso.com shall not deliberately disclose customer's personally identifiable information to any unauthorized third person, save and except where such information shall be disclosed in good faith and for the purpose of law for the time being in force or to protect the rights and property of Sharekhan Comtrade Private Limited and www.myespresso.com.
Public Forums :
The Web Sites makes chat rooms, forums, message boards and/or news groups available to its users. Please remember that any information that is disclosed in these areas becomes public information and you should exercise caution when deciding to disclose your personal information.
Supplemental Information :
The Web Site supplements the information that you provide with information that is received from third parties.
The Web Site DOES NOT entice by the prospect of a special game, prize or other activity, to divulge more information than is needed to participate in the activity.
Further to the above, in light of the recently notified Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011. (Hereinafter referred to as the Rules)
The following shall be deemed to be sensitive information :
Password;
Financial information such as Bank account or credit card or debit card or other payment instrument details;
Physical, physiological and mental health condition;
Sexual orientation;
Medical records and history;
Biometric information;
Any detail relating to the above clauses as provided to body corporate for providing service; and
Any of the information received under above clauses by body corporate for processing, stored or processed under lawful contract or otherwise:
provided that, any information that is freely available or accessible in public domain or furnished under the Right to Information Act, 2005 or any other law for the time being in force shall not be regarded as sensitive personal data or information for the purposes of Rules.
Collection of Information:
Compliance with KYC guidelines as per SEBI / Exchanges / Or any other Act, law or regulation requiring the same and any internal KYC guidelines formulated by Sharekhan Comtrade Private Limited.
In order to provide enhanced trading experience to the client.
In order to provide any further information to be provided to regulators.
Such information may be collected in a manner that the client is always aware of the collection and purported usage of the same. The client shall have an option to withdraw consent to share the information. However such intimation shall be required in writing. Such intimation shall only be taken into account from the date on which the same is received. Sharekhan Comtrade Private Limited may choose to stop services to such a client in case such intimation is received. Such information shall only be used for the purpose it is collected.
Clients would be allowed an option not to disclose any information to be collected, provided the same is in compliance with regulatory requirements.
Disclosure of information:
Disclosure of sensitive information would be as per the terms agreed by the clients. For any change in such terms, the clients would be informed.
Provided no consent may be required in case the same is being shared as per compliance guidelines or as required by regulators.
Any information being disclosed to third parties would be in accordance with the Rules and would be done provided such third party has the same level of compliance guidelines as Sharekhan Comtrade Private Limited.
Sharekhan Comtrade Private Limited shall allow clients to review their personal information and the same shall be allowed to be edited provided exchange guidelines relevant to the same are followed.
Sharekhan Comtrade Private Limited shall maintain reasonable security practices and procedures and maintain a comprehensive documented information security programme. In the event of an information security breach, Sharekhan Comtrade Private Limited or a person on its behalf shall be required to demonstrate as and when called upon to do so by the agency mandated under the law, that there have implemented security control measures as per their documented information security programme and information security policies and information security policies that contain managerial, technical, operational and physical security control measures that are commensurate with the information assets being protected with the nature of business.
KYC Languages
Download Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don't's) in Vernacular Language :
Note: "This document is a translated version of the client registration documents in English and is being provided in vernacular language to facilitate better understanding by the investors. In case of any ambiguity, the contents of the English version would prevail."
NDNCR Terms & Conditions
By accepting the Terms & Conditions, you authorise Espresso, its representatives and agents to provide information about various products, offers and services provided by Espresso through any mode, including telephone calls, SMSes, emails, letters and any other mode of communication. You also confirm that laws in relation to unsolicited communication referred in "National Do Not Call Registry" as laid down by "Telecom Regulatory Authority of India" will not be applicable for such information/communication.
Filing Complaints on SEBI Complaint Redress System (SCORES) - Easy and Quick
Register on the SCORES portal
Mandatory details for filing complaints on SCORES:
Name
PAN
Address
Mobile Number
Email ID
Benefits:
Effective communication
Speedy redressal of grievances
You can file complaints on SCORES through https://scores.gov.in/scores/Welcome.html
