Whenever we talk about the Indian stock market there are two types of exchanges
NSE – National stock exchange
BSE – Bombay stock exchange
These are India’s two largest exchanges and comes under top stock exchanges in Asia.
Sometimes beginners confuse between these two because people think both of them are the same but in reality, they are very different. In this article, we will talk in detail about the difference between NSE and BSE.
What is a stock exchange?
As the name clears its a place where stocks are exchanged means where stocks are bought and sold
Exchange work is to take the shares from the seller and give it to the buyer, Exchange works as a platform between both these parties.
There are many stock exchanges in India like the Calcutta stock exchange, Chennai stock exchange, etc. But most of the trading happens in NSE and BSE only.
Bombay stock exchange is Asia’s first and oldest stock exchange which was founded in 1875.
In old times, Traders decides on one location to meet physically and do the buying and selling of shares.
But around 1992 when computer usage was increasing then a new stock exchange was established named the National stock exchange which was India’s first dematerialized electronic exchange.
Before NSE the process of buying and selling was time-consuming, sometimes it would take months to transfer the shares.
But after NSE due to the computerized technology the shares were being bought and sold within minutes.
And it is also told that after NSE came BSE initially refused to adopt the computerized system, But later seeing the increased use and benefits of computer systems BSE also computerized in 1995.
Difference between NSE and BSE
- Listed Companies – National stock exchange has 1800 listed companies and the Bombay stock exchange have more than 5000 listed companies.
- Index – Index means nifty and Sensex which includes top 50 and 30 companies.
- The volume of trading of individual stocks – Buying and selling volume of stocks in the national stock exchange is more as compared to BSE.
You may refer to this video if you want the explanation in Hindi