History of share bajar: History of the stock market: In today’s world the stock market is very close to the lives of common people. Now in everyday conversations, they have become common mention on newspapers, news channels and social media, whether it is an investment plan, expectation of profit or development of a company. However, have you ever wondered when and how this entire system started?
In this article we will read the interesting story of the stock market, which started with the meetings of some traders and today is completely digital and high speed trading in the world.
Stock market starts in the world:
The stock market began in the 17th century, its oldest form was presented in 1602 by Dutch East India Company of the Netherlands. This company used to borrow money from people and they used to take them in marine commerce for those money, in return they would be given the company shares there. They were sold in Amsterdam Stock Exchange. Thus the first market stock market of the world was established.
Gradually the system spread to England, France and America. America’s New York Stock Exchange (NYSE) in 1792, which is still the largest stock market in the world.
Stock market starts in India:
The foundation of the stock market in India was laid in the 19th century. It was started by some bankers and traders in Mumbai, who used to buy and sell shares and bonds during British rule.
Bombay Stock Exchange (BSE):
• In the 1850s, some traders used to deal with share under a banyan tree in Mumbai.
• In 1875, 22 traders together established ‘Native Share and Stock Brokers Association’, which we know today as Bombay Stock Exchange (BSE).
• BSE is the oldest stock exchange in Asia.
National Stock Exchange (NSE):
• After the 1992 Harshad Mehta scam, the government felt the need for a more transparent and technically advanced system.
• Due to this, the National Stock Exchange (NSE) started in 1994.
• It is a perfectly electronic trading platform and is counted among the fastest stock exchanges in the world.
Important stops and events:
1. Harshad Mehta Scam (1992):
A major scam in the stock market shook the entire country. Harshad Mehta took advantage of the shortcomings of the banking system and scammed crores of rupees. After this, SEBI (Securities and Exchange Board of India) was given more rights.
2. Formation of SEBI (1992):
SEBI was designed to regulate the stock market 0, protect investors and increase transparency.
3. Beginning of digital age:
Online trading became easier due to internet and mobile technology in the 2000s. Now any person can buy and sell shares from his mobile itself.
A glimpse of change in stock market:
1. 1850–1900: Merchants’ meetings were held under the banyan tree, deals were performed orally.
2. 1875: Bombay Stock Exchange (BSE) was established – Asia’s first and oldest stock exchange.
3. 1900–1970: The listing of companies increased, trading rules gradually improved.
4. 1992: SEBI was strengthened after the Harshad Mehta scam, transparency begins.
5. 1994: National Stock Exchange (NSE) started – completely electronic trading system.
6. 2000–2010: Internet and computer based trading caught pace, brokerage houses went online.
7. 2010–2020: Mobile apps, discount brokers and real time data made access to common investors.
8. After 2020: Artificial intelligence, machine learning and Robo-Aquarius use increased, development in automatic trading.
9. Today: The stock market is completely digital, from the youth to rural investors are also participating easily.
Social impact of stock market:
• Changes in investment habit: Earlier people used to invest only in gold or property, now the youth is also showing interest in SIP and stock market.
• Jobs and Career: New career options like stock market analyst, trader, investment banker are open.
• Contribution to the economy: Companies get capital from the stock market, which makes them work on a large scale and strengthens the country’s economy.
Today’s stock market:
Today, the market capitalization of the Indian stock market is for millions of crores of rupees. Index like Sensex and NIFTY have now become signs of economic health, not just figures.
Some key things,
• 5000+ companies are listed in BSE.
• 1600+ companies are listed in NSE.
• India is among the top 10 stock markets in the world.
Summary :
The history of the stock market is not just the story of companies and traders, but it is a glimpse of the economic, social and technological progress of the country. This journey tells us how we have reached the digital age today by traditional business methods, where there are deals with one click and markets around the world are connected.
The stock market is a great way to invest wisely, but information, patience and vigilance are very important for this. By learning from history, we can move towards a better future.
