“Why there is two exchanges in India”

A. Exchanges are places where you can buy and sell something.

India has two operational stock exchanges: Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

There were other stock exchanges in India also.

But they shut down due to operational reasons like not being able to remain technologically updated or not being able to stick to the regulatory requirements, etc.

Example: Calcutta Stock Exchange, Bangalore Stock Exchange, Madras Stock Exchange — are all stock exchanges in India that are no longer operating.

Stock exchange is like a shopping mall — a place to buy and sell.

There can be any number of stock exchanges in a country.

Right now, we have two exchanges.

Baburi Masjid

A 19th-century photograph of Baburi Masjid by a British photographer Samuel Bourne. According to Catherine Blanshard Asher, the mosque was originally built by Mughal commander Mir Baqi on the orders of the founder of the Mughal Empire, Babur in 1528-29 in Ayodhya (present-day Uttar Pradesh, India).


December 6 marks the 31st year of its demolition.

Nifty Next 50

Nifty Next 50 is an index (collection) of stocks.

It consists of the 51st to 100th biggest stocks of India. The 50 biggest stocks are shown in the index Nifty 50, the 30 biggest are shown in Sensex 30.

The size of the stocks is determined by their market capitalization (m-cap).

How is the IPO price decided?

There are firms that take companies through the IPO process. They are called underwriters.

Underwriters use various methods to estimate the share price. There are a few methods like discounted cash flow method, comparing with other companies, etc.

Once they have a share price that they think is good, they have two options.

Fixed price offering: where one share price is offered to investors.

Book building offering: where they keep the price in a 20% range and let investors bid for shares.

Based on the bidding, the final price is decided.