Amazing Facts About Stock Markets: There are many interesting and amazing facts about stock markets that you may not have come across.
BSE in India :
Bombay Stock Exchange (BSE) in India has the highest number
of listed companies in the world with an estimated 5689 companies. National
Stock Exchange (NSE) of India has around 1750 companies.
Most Expensive Stocks :
The most expensive stock in world is the Warren Buffet’s
Hathaway, Class A, which is priced at USD 2,13,330 per share. The reason for
such a high price is that the company doesn’t splits the shares.
Oldest Stock Exchange:
The oldest stock exchange in the world is Amsterdam Stock
Exchange, which was established in 1602 by Dutch East India Company dealing
with the printed stocks and bonds.
Indian Household Saving
:
In India, out of 22124.14 INR billion household savings,
only 2% goes as investment into equities. People in India are more inclined to
invest their money in gold, banks and in real estate.
Bear & Bull :
The terms “Bear” and “Bull” are thought to be originated
from the way of attacking by each animal, with the bull thrusting its horn up
in the air, while a bear swiping downwards. Historically, the middleman used to
speculate on the future price of the bearskins by selling them which they yet
had to receive from the tappers, with the expectation that the price will drop.
They used to call the middleman as bear jobbers and in short “bears” which is
known to describe the downturn in the market. As bull was assumed to be
opposite of the bear at that time so it was termed as the upward movement of
the market.
Seasonal Impact on
Market :
Historically, on an average the market declines mostly in
the month of September. The three leading indicator DJIA (Dow Jones), S&P
500 (Standard and Poor) and NASDAQ have seemed to be performing poorly in this
month. One of the reasons for this is that the trading volume declines in
summer as the investors take time for vacation and once they return to work,
they exit positions they had build up.
Algorithmic Trading :
In the year 2006, one third of the all stocks traded in US
and European Union was traded through Algorithmic Trading, a trading system
heavily reliant on the mathematical formulas and high speed algorithms and
computer programming. And by 2008, almost around 80% of trading was being done
by algorithms, however due to various regulations the trading volume via
algorithms in percentage terms declined after 2008.
