BMA WEALTH CREATORS PVT. LTD.

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A stock market or equity market is a public entity (a loose network of economic transactions,
not a physical facility or discrete entity) for thetrading of company stock (shares) and
derivatives at an agreed price;these are securities listed on a stock exchange as well as those
onlytraded privately. The size of the world stock market was estimated at about $38.6
trillionat the start of October 2011. The stocks are listed and traded on stock exchanges
which are entities of a corporation or mutual organization specialized in the business
of bringing buyers and sellers of the organizations to a listing of stocks andsecurities together.
The largest stock market in the United States, bymarket capitalization, is the New York Stock
Exchange (NYSE). InCanada, the largest stock market is the Toronto Stock Exchange.
MajorEuropean examples of stock exchanges include the Amsterdam StockExchange,
London Stock Exchange, Paris Bourse, and the Deutsch Brse(Frankfurt Stock Exchange). In
Africa, examples include Nigerian StockExchange, JSE Limited, etc. Asian examples include
the SingaporeExchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange,and the
Shanghai Stock Exchange. In Latin America, there are suchexchanges as the BM&F Bovespa
and the BMV.In India Bombay Stock Exchange (BSE) benchmark, Sensex & NationalStock
Exchange (NSE), the 50-stock Nifty
index. The market in which shares are issued and traded, either throughexchanges or overthe-counter markets are also known as the stockmarket. It is one of the most vital areas of a
market economy because itgives
companies
access to capital and investors a slice of ownership in acompany with the potential to realize
gains based on its futureperformance.

BMA WEALTH CREATORS PVT. LTD.

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EVOLUTION OF THE INDIAN BROKERAGE MARKET
The Indian broking industry is one of the oldest trading industriesthat had been around even
before the establishment of the BSE in1875. Despite passing through a number of changes in
the postliberalization period, the industry has found its way towardssustainable growth. The e
volution of the brokerage market is explainedin three phases: pre1990, 1990-2000, post 2000.
Early Years
The equity brokerage industry in India is one of the oldest in the Asiaregion. India had an ac
tive stock market for about
150 years thatplayed a significant role in developing risk markets as alsopromoting enterprise
and supporting the growth of industry. The roots of a stock market in India began in
the 1860s during theAmerican Civil War that led to a sudden surge in the demand forcotton
from India resulting in setting up of a number of joint
stockcompanies that issued securities to raise finance. This trend was akinto the rapid growth
of securities markets in Europe and the NorthAmerica in the background of expansion of
railroads andexploration of natural resources and land development.Bombay, at that time, was
a major financial centre having housed31 banks, 20 insurance companies and 62 joint stock
companies.In the aftermath of the crash, banks, on whose building steps sharebrokers used to
gather to seek stock tips and share news, disallowedthem to gather there, thus forcing them to
find a place of theirown, which later turned into the Dalal Street.A group of about
300 brokers formed the stock exchange in Jul 1875,
which led to the formation of a trust in 1887 known as the Native
Share and Stock Brokers Association. A unique feature of the stock
market development in India was that that it was entirely driven bylocal enterprise, unlike the
banks which during the pre -