The Story Of Bombay Stock Exchange

The Story Of Bombay Stock Exchange

A stock represents fractional ownership of a corporation. Shares together form stocks. Stocks have proved to be a very lucrative investment opportunity. When the money is invested in the right company, there is a possibility of that money multiplying itself many folds. This growth of money attracts many people to invest in stocks. However, there are times when investors go under loss. To trade in stocks the help of a stockbroker is necessary. A stockbroker has extensive experience and is a professional. It is recommended to avail the services of the best stock brokers, which can help in gaining good returns on your investment.

Let’s take a brief look at the history of Bombay Stock Exchange.

Premchand Roychand founded the Bombay Stock Exchange. Being among the most influential businessmen of 19 the century Bombay he was known as the Cotton King, the Bullion King or simply the Big Bull. He made his fortune in stock brokerage. In addition to BSE, he also founded the Native Share and Stock Brokers Association.

Today we use BSE Ltd and Dalal Street alternatively now. However, this was not always so. The earliest stockbroker meetings were held under the banyan trees, in front of the town hall in the 1850s. A group of 22 brokers used to meet there daily. The meeting under natural environs moved to another set of foliage, under banyan trees at the junction of Meadows street, which has been renamed to Mahatma Gandhi Road now. As more and more brokers joined in, the party had to shift from place to place, but they always overflowed to the streets. Finally, in the year 1874, a permanent site was found which they could call their own. The new place was called the Dalal street or Broker’s Street.

The Bombay Stock Exchange is the first stock exchange in Asia. BSE is the first and the oldest stock exchange to be recognized by the Government of India under the Securities Contracts Regulations Act on August 31, 1957. The company moved into the iconic Phiroze Jeejeebhoy Towers on Dalla Street in the year 1980. In the year 1986, the exchange developed the S&P BSE SENSEX index, giving the BSE a way to evaluate its overall performance.

Historically the Bombay Stock Exchange had an open outcry floor trading exchange, but it switched to an electronic trading system in 1995. Remarkably the transition took place in just 50 days. BSE On-Line Trading (BOLT) is an automated screen based trading platform with a capacity of 8 million orders a day. The Indian stock market has grown thousands of folds since its first inception. Today BSE is the 12th largest stock exchange in the world. The market capitalization is more than USD 2 trillion.

With many stock exchanges today, which different companies listed on them, it important to know which company offers the best and consistent return. The help of the best stock brokers is significant. Though research of the market, an analytical mind, keen intuition and a bit of luck will go a long way for your progress in the stock market.

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