The stock exchange or market is a place where stocks, shares and other long-term commitments or investments are bought and sold. The stock markets increased the marketability and enhanced the significance of stock markets. In the capitalist society stock exchange is an institutional institution and in other words we can say that the through this only the capitalist economic society exists for the smooth functioning of the corporate business. It provides the mobility to capital investments.
The Securities Contracts (Regulation) Act of 1956defines a stock exchange as “anybody of individuals, whether incorporated or not, constituted before corporatization and demutualization” or “a body corporate incorporated under the Companies Act, 1956 whether under a scheme of corporatization and demutualization or otherwise,” for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.
Stock markets have started a long back that is on the 18th century, when the East of India company began the trading. In India the stock exchanges has started in the year 1850 when 22 stockbrokers started trading in the opposite to the town hall of Bombay. It all started under a particular banyan tree.
Mass participation from the public came when the Dhirubahi Ambani came in 1980 with reliance IPO. When we look at today’s world so many scams took place in these many years like scam 1992.,which have a greater influence on the people and they lost faith also. But somehow it developed the country in a various forms like giving employment opportunities.