At present scenario in india, everyone is interested in investing stock market and want to earn huge amount of returns from it.
They are multiple stock markets around the world which provide lucrative returns when invested wisely and carefully.
Due to which stable economy and powerful economic systems, stock market in USA are becoming popular destiny for investments.
Many people from India are interested to know about stock market in USA and want to know how to start investing as a beginner in USA stock market.
But before investing in any of these stock markets, one requires the full information about it so that one cannot get negative results after investment his precious money.
We are here with an article about introducing USA stock market from a beginners perspective.
Let's move on...!
To understand the basics of US stock market is by comparing some of the basics of it with Indian stock market.
MAJOR STOCK EXCHANGES :-
In India the major stock exchanges are Bombay stock exchange or BSE and National stock exchange or NSE.
while in USA the major stock exchanges are New York stock exchange or NYSE and NASDAQ exchange.
DIFFERENCE BETWEEN OPENING TIMING :-
There is a little difference between the opening timing of the stock exchanges in India and USA.
In India, stock exchanges open at 9:15 a.m. in the morning and ends at 3:30 p.m. in evening.
While in USA, the opening time for stock markets is at 9:30 a.m. in morning and getsclosed at 4:00 p.m. in evening.
MAJOR STOCK MARKET INDICES :-
Indices refers to the stock exchange indexes.
In India, BSE's stock index is known as SENSEX while Nifty is the index of National stock exchange or NSE.
While in USA, the major stock market indices are - DOW, NASDAQ, S&P 500 and RUSSELL 2000.
The last one is an upcoming index, which focuses on small caps.
CIRCUIT FILTERS :-
It means that a market holds or stops after certain conditions are hit.
In Indian scenario, if market crashes by 10% then there will be a halt, at 15% there will be an another halt and if market crashes by 20% then the market will stop from functioning for the rest of entire day.
While in the case of US stock Markets, these halts will be at 7% 13% and at the end at 20%.
These are the circuit filters or market crisis circuit breakers in US stock markets.
FRACTIONAL SHARES :-
In India, one is not allowed to invest in fractional market shares.
The minimum value for investment in shares should be at least 1.
But in the case of US stock markets, a person is allowed to investing fractional market shares which are of high value.
REGULATING BODY OF CAPITAL MARKET :-
In India the regulatory body of capital market is known as SECURITY EXCHANGE BOARD of INDIA or SEBI.
While in the USA stock markets, the same function is performed by SECURITY EXCHANGE COMMISSION or SEC.
A beginner should keep these points in mind while studying more about US stock market and investment.
