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Are you one of those people who have portfolios in the stock market, which someone else invested for you, but are oblivious to what it means? Well I am or rather was one of the ignorant few till I decided to read up and save face.
Here is the basic know how that I gathered during my 'research'. A stock exchange is basically a corporation which facilitates trading of stocks. A stock simply represents ownership of a company's assets and profits. India has two well known stock exchanges: NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). There are some lesser known regional stock exchanges as well.A stock index represents the change in value of a set of stocks, which constitute the index. The most popular indices for the two stock exchanges NSE and BSE are Nifty and Sensex (SENSitive indEX) respectively. The BSE Sensex has 30 stocks comprising the index which are selected based on market capitalization, industry representation, trading frequency etc.