Corrections – An Integral Part of the Stock Market
By: Venteskraft Team
Updated: April 7, 2020
Over the past few decades there has been an explosion of strategies and money flow from the institutional investors relative to the market participation of individual investors. Corrections have been made through out the time. It has been a dynamic change, and this due to this frequent change there has been an imbalance in the market which makes it a bit more difficult for the individual investor to make a place in the market. But how exactly have these changes taken place in the market.
Before heading on to the how let us check out some changes that have taken place in the Stock Market in the past few decades;
1. Bombay Stock Exchange BSE in India has become the largest exchange to have 5689 companies listed under it.
2. BSE was established in 1875 and over that large period of time it has transformed into c completely digital exchange.
3. Each and every individual with just a bank account, a pan card and a will to trade can start trading with whatever invest they think is right.
4. Till date there has been established a total of 23 stock exchanges in India.
Now that we know what the corrections have been, let us see how these changes have taken place and what do they tell us about the future of Stock Market. First of all whenever a large mass of people show their interest in a specific sector, surely that sector starts to grow and not only grows but finds the most appropriate and creative ways to bud. Now same thing happened with the Stock Market, it all started with barter systems or gathering up in a room full of investors bidding a stock and someone buying it. But when more and more people started showing a fondness, it was looked upon as a signal to start building the Stock Market so that more and more people could participate and earn through trading.
And from trading in assets and securities, the Stock Market introduced Options and Futures to expand the potential of the Stock Market and give the investors even more opportunities to increase the size of their portfolios. And that wasn’t all; still a large number of individual investors were left out. That was a sign to make it even bigger, so the demat accounts were introduced which completely digitalized all the contracts.
And after the foundation of discount brokers and the leverages that were being provided by them. More and more gates were opened for the individual investors. Discount brokers like Zerodha and Upstox, charging as much as Rs 20 for a trade can be seen as a boon. And due to that the market today is more volatile that it was 30 years ago. And not only that; The Stock Market which was often taken as gambling and mere betting, is now being taken as a skill. And many platforms are even providing legitimate courses explaining and teaching the strategies and fundamental knowledge that can be used to trade in the Stock Market. So this has been the course of corrections throughout the time.
