If you are a beginner in the share market and are looking in investing in shares, NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are two stock exchanges where you can spend.
While NSE is the biggest stock exchange, BSE is the oldest. Nifty and Sensex are the main indexes of NSE and BSE, respectively. The index offers a general idea about stocks; it can be used to check the market performance of shares. BSE or NSE, which is better for beginners? How do you choose where to invest?
Given below is the comparison between NSE and BSE:
|Trading Volume||More||Lesser than NSE|
|Liquidity||More||Lesser than BSE|
1. Trading Volume: As seen above, NSE has more trading volume; that implies many buyers and sellers for stocks are available. On the other hand, BSE has a lesser trading volume.
2. Liquidity: NSE has more liquidity than BSE, which makes it a better choice. More liquidity makes trading easy, and there are more opportunities to convert stocks into money.
3. Stocks: BSE has a gigantic list of stocks; most of the company stocks are part of BSE; all stocks that are part of NSE are also part of the BSE list.
4. Derivative Contracts: NSE Nifty and Bank Fifty are highly traded thanks to their liquidity. NSE has monopolised the derivative contract segment with Nifty.
NSE and BSE, Which is Better for You?
BSE is more suitable for beginners, while NSE is more suitable for seasoned investors and traders. If you are an investor in India who want to invest in shares of new companies, BSE would be an ideal choice. But if you are a day trader, risking share trading with derivatives, futures, and options, NSE would be the preferred choice. Also, NSE has better software for high-risk online transactions. For conservative investors, who like to sit and watch their investments grow, BSE is the right choice.
NSE and BSE have different methods of levying a tax. Taking that into consideration, NSE is suitable for lesser turnovers, and BSE is ideal for more significant turnovers.
Both are secure and provide good online services; hence both are excellent choices.
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