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Some Lesser known facts about Stock Markets

Uploaded Date 09-Apr-20
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A stock market is a fascinating place. Numerous people have attempted to understand the workings of the stock markets. Numerous have gained tremendously at the same as well.

Let us take a look at a few of the interesting facts regarding the stock markets that not all people are aware about.

Rule of 72

People sometimes wonder how long will it take for their invested money to double up. In this regard, the rule of 72 can be of a great deal of help.  

Using the rule of 72, one can calculate the time taken for their money to double up, if they know the fixed annual rate of interest.

As an example, if one invests any amount of money at a rate of return of 8%, it will take 72/8 = 9 years to double up.

The rule of 72 is not accurate in entirety, but it gives approximately correct figures. 

Some very interesting facts about BSE or the Bombay Stock Exchange

The Bombay Stock Exchange was founded by a businessman named Premchand Roychand in 1875. Mr. Roychand came across vast riches in his stockbroking business. He is sometimes known by the nicknames associated with him, such as Bullion King, Cotton King, and the Big Bull.

The BSE wasn’t known by this name when it got started. It was instead known as the Native Share and Stock Brokers Association.

All across Asia, BSE is the oldest stock exchange. Over 5,500 companies are listed in the BSE. This is more than the number of companies listed in any other stock exchange, across the world.

Beyond BSE, there are 23 other stock exchanges in India.

Before 1995, only physical trade was conducted in the stock exchange. It was following 1995 that exchange initiated, with the process of dematerialization.

The costliest stock in the world

In the stock market, limited risk propositions yield limited benefits. If one wants to stand a chance of making a good profit in a short duration of time, risk factors are likely to be higher.

Have you ever wondered about the most expensive stock in the world? The costliest stock in the world is Berkshire Hathaway. 

A single share of the stock will cost you a staggering Rs. 2 crores. 

Berkshire Hathaway is a multinational conglomerate from the US. It is headquartered in Nebraska and is the world’s third-largest public company. By revenue, it is the largest financial services company in the world. Warren Buffet is the chairman of Berkshire Hathaway.

Indian Companies more prominent than the combined market value of Karachi Stock Exchange

There are two Indian companies, Reliance Industries Limited (RIL) and Tata Consultancy Services (TCS), whose market capitalization is higher than the cumulative market capitalization of the Karachi Stock Exchange (KSE).

KSE started trading in 1947 with 5 companies, as KSE50. It then used to have a total market capitalization of USD 260,000. 

The present-day market capitalization of KSE values at USD 65 billion. This is lower than the market capitalization of TCS.

The most expensive stock in India

In 2019, the most expensive stock in India was MRF tires. Its stock was priced at Rs. 60,000, which is more expensive than the salary of an average Indian.

Judicious investment in the stock market delivers priceless returns

Stock market conditions may be dynamic over the short term, at any point in time. But judicious investments over the long term are always primed to deliver rich outcomes.

•An investment of Rs. 10,000 in the IPO of Infosys would have delivered 2,973 times return. It would be priced at Rs. 2.97 crores.

•Rs. 10,000 invested in SHREE CEMENT in 1990 would today be valued at 2.90 crores.

•Rs. 10,000 invested in DR. REDDY in 1986 would today be priced at 10 crores today.

With priceless stock tips by Shyam Advisory, you can see your money grow over the short term and the long term. Investments are not just more likely to bring in success, they are safer as well. Contact us today!