An index is a stock-market indicator created as a statistical measure of the performance of an entire market or segment of a market based on a sample of securities from the market. An index is thus a means to evaluate the overall performance of a market or of a segment of the market. Index measures aggregate market movements. Apart from being a general market indicator, indices are used as a benchmark to evaluate individual portfolio performance. Professional money managers will always try to outperform the market, i.e. they will always try to do better than the indices. For example, if the value of a portfolio moves up by 10% while the index moved up by only 5% then the portfolio is doing better than the market. We have 2 renowned indices viz.
i. BSE Sensitive (BSE Sensex) and ii. Nifty 50 (Nifty)
BSE Sensex comprises of 30 large-cap companies. As the name suggests, it is a premier index on Bombay Stock Exchange (BSE).
Nifty comprises of 50 large-cap companies on the National Stock Exchange (NSE).
The market watch, i.e. the screen kept open normally on the trade screen would show the following columns –
1. Best bid price
2. Best bid quantity
3. Best offer price
4. Best offer quantity
5. Last traded price
The first 2 columns as given above show the available buyers for a particular share in the stock exchange and the next 2 columns show the available sellers, and the fifth column shows the price at which the last trade took place. Hence when a investor wants to buy a share at “market price” ideally the 3rd and the 4th column would depict how many shares one can get at a stipulated price. The client can also put a limit price order which would sit in the order book till it reaches a price time priority when the trade can be executed.
Clients can transfer funds into the Trading Account only from such bank accounts which are registered with VSE Stock Services Limited. Any transfer from a non-registered bank account will not be considered and the client does not get any trading limit credit for such transfers.
The client can transfer funds from the instant payment gateway facility available on the trading platform or on the Back Office or deposit cheque in designated bank account of VSE Stock Services Limited.
If the client transfers funds via cheque, the details of the transfer along with a copy of the cheque should be made available to VSE Stock Services Limited for the credit to be updated on the trading account.
All payouts will have to be compulsorily placed on the Back office access provided to the clients / Authorised Persons. All payout requests will be processed electronically and the credit shall come to the client’s primary bank account (default bank account) of client within 24 hours of having processed the payout request.
Withdrawal requests for EQ/Currency will be processed at 1:30 PM on working days. If you place a withdrawal request before 1:30 PM, the money will be credited to your account the same day. If you place a withdrawal request after 1:30 PM, it will be processed on the next working day and you will receive the funds in 24 hours.
Three kinds of accounts are required to be able to trade on-line. They are:
i. Broking account with VSE Stock Services Ltd.
ii. Depository Participant (DP) account with VSE Stock Services Ltd.
iii. Bank account which has developed an interface with “VSE Stock Services Ltd.” i.e. designated banks like HDFC Bank, Axis Bank.
Capital Market enhances capital formation in the economy and comprises of -
i. Primary Market is a place where new offerings by Companies are made either as an Initial Public Offering (IPO) or Rights Issue.
ii.Secondary Market is a market where securities are traded after being initially offered to the public in the Primary Market and/or listed on the Stock Exchange. Majority of trading is done in this market which comprises of equity market and debt market.