NSE is stand for National Stock Exchange and BSE stand for Bombay Stock Exchange .
Both NSE and BSE are the two mainly stock exchange of India.
Before we know that What is difference between NSE and BSE , we have to know that what both are.
What is NSE (National Stock Exchange ) :
National Stock Exchange is main stock exchange of India . It was established in 1992 and is located in Mumbai.
The benchmark index for NSE is Nifty 50 and normally in Nifty 50 have top 50 companies. And in NSE have overall more than 1700 companies are registered . It is the world's 11th largest stock exchange. Official website to know more about NSE is www1.nseindia.com and Mr. Vikram Limaye is the CEO of National Stock Exchange.
What is BSE (Bombay Stock Exchange ) :
BSE is one of the oldest stock exchange of India Bombay stock exchange was established in 1875 in India.The benchmark index for BSE is Sensex .
It have mainly 30 companies . The BSE is world's 10th largest stock exchange with overall market cap 2.2 trillion dollar. Official website for BSE is
www.bseindia.com and chairman of BSE is Mr.Vikaram Sen and CEO Aashish kumar chouhan .
That are the basic knowledge about both the stock exchange now we will
Understand what is the difference between NSE and BSE.
The real difference between NSE and BSE :
1 . NSE have benchmark index Nifty 50 and BSE have Benchmark index Sensex .
2. NSE have higher volume as compare to the BSE.
3 . NSE have top 50 companies and BSE have 30 companies.
4. NSE office presents in all cities in India and BSE have only more then 350 cities that is main difference between both of stock exchange.
5. NSE is youngest stock exchange and BSE is oldest stock exchange in India
NSE and BSE Work in stock market :
As we know that NSE and BSE both are stock exchange in stock market and stock exchange allow trader to do buying and selling a share of company.
Companies are raising fund from stock market through IPO and after that company is registered in the stock exchange and then we do trading in secondary market.
So we can say NSE and BSE are the mediators between buyer and seller
And reduce the default risk in stock market. Securities Exchanges provide the infrastructure for trading in securities that have been issued at current value.
The existence of the stock exchange
system helps the stakeholders in getting a fair valuation on their
investment.
It also provides liquidity to the trader when they require funds and encourages investors to invest when issuers raise funds.
stock exchanges such
as the National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and the Metropolitan Stock Exchange of India (MSEI) are national exchanges which provide nation-wide broker
networks.
Trading happens on electronic trading terminals through anonymous order
matching.
Stock exchanges also appoint clearing and settlement agencies and clearing
banks that manage the funds and securities settlement that arise out of these trades.
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