Stock market investments keep getting more instant and easier as time passes. Thanks to the widespread use of the internet, learning about various trading methods and investment strategies have become rather simple. After all, with everything going online, can stock trading be far behind? At the end of the day, the convenience of online stock trading is undeniable. So, if you are planning to get into the world of stock trading online, here are a few facts that will interest you.
The rule of 72 for every investor out there
One of the most basic concepts in the stock market is the rule of 72. It is the rule investors use for calculating the time needed for doubling their investment. When you know about the fixed annual interest rate, it is easy to figure out the time needed for investments to double up. Here is a simple example to help you understand it better.
Suppose an investor has put in INR 5,00,000 at an interest rate of eight percent. If you use the rule of 72, the time needed for doubling the investment goes to 72/8, i.e., 9 years. So, you would need nine years for double the corpus. This rule works particularly well for low interest rates.
Do not let the mistakes discourage you
They need to closely analyze the quantity and price ratio before deciding anything. Even the slightest mistakes in measuring price for the quantity can make you end up with a huge loss. Remember that the stock exchange operates pretty fast, and you cannot reverse the order you have placed.
Bombay Stock Exchange is the oldest one in Asia
Bombay Stock Exchange was founded back in the nineteenth century by Premchand Roychand, a renowned Indian businessman. Back in the day, he was popularly called the bullion king, the big bull, and the cotton king. The initial name of the Bombay Stock Exchange was the Native Share and Stockbrokers Association. It is the oldest stock exchange in Asia and has more than 500 companies on the list.
There are twenty-three other stock exchanges in the country, including the Bombay Stock Exchange. Solely physical trading was possible before 1995 but introduction of dematerialization later made the trade execution highly efficient.
The costliest stock available in the world
The most expensive stock available in the world is Berkshire Hathaway, where a share of the company costs you more than INR 2 crore. This American Multinational Conglomerate has its headquarters based in Nebraska, USA.
It’s one of the biggest financial service organizations that has the highest profits in the world. Charlie Munger and Warren Buffett manage the company and serve as vice-chairman and chairman, respectively.
And these are some of the most interesting and lesser-known facts about the stock market in India. Hopefully, you got to know about quite a few intriguing details about the stock exchange today.