(i) NSE was incorporated in November, 1992.
(ii) It is a countrywide, screen based, Online and order driven trading system.
(iii) It uses satellite link to spread trading throughout the country thereby connecting members scattered all over the India.
(iv) Through computer network, member's orders for buying and selling within prescribed prices are matched by central computer with each other and instantly communicate to the trading member.
(v) NSE has two segments, i.e. Debt segment and capital segment. It has ushered in transparent, screen based and user friendly trading of global standards.

National stock market system was advocated by the Higher powered group on the establishment of New stock Exchanges headed by Shri. M.J. Pherwani (popularly known as pherwani committee).
At present the National stock Market in India comprises the following:
(i) National Stock Exchanges of India Limited (NSE)
(ii) Stock Holding Corporation of India Limited (SHCIL)
(iii) National clearing and Depository System (NCDS)
(iv) Securities Trading Corporation of India. (STCI)

(i) Stag:
(a)  A Stag is cautious speculator in the stock exchange.
(b) He applies for shares in new companies and expects to sell them at a premium, if he gets and allotment.
(c) He selects those companies whose shares are in more demand and are likely to carry a premium.
(d) He sells the shares before being called to pay the allotment money. He is called a premium hunter.
(ii) Lame duck:
(a) When a bear finds it difficult to fulfill his commitment, he is said to be struggling like a lame duck.
(b) A bear speculator contracts to sell securities at a later date. 
(c) Moreover, the buyer is not willing to carry over the transactions.

Bull :
(a) A Bull or Tejiwala is an operator who expects a rise in prices of securities in the future.
(b) In anticipation of price rise he makes purchases of shares at present and other securities with the intention to sell at higher prices in future.
(c) He is called bull because just like a bull tends to throw his victim up in the air, the bull stimulates the price to rise. He is an optimistic speculator.
Bear :
(a) A Bear or Mandiwala speculator expects prices to fall in future and sells securities at present with a view to purchase them at lower prices in future.
(b) A bear does not have securities at present but sells them at higher prices in anticipation that he will supply them by purchasing at lower prices in future. A bear is a pessimistic speculator.

The limitations of stock exchange are as follows:
(i) Lack of uniformity and control of stock exchanges.
(ii) Absence of restriction on the membership of stock exchanges.
(iii) Failure to control unhealthy speculation
(iv) Allowing more than one stock exchange in the place.
 

Lombard Street
(i) Lombard Street, London, is a street notable for its connections with the City of Londons merchant, banking and insurance industries, stretching back to medieval times.
(ii) From Bank junction, where nine streets converge by the Bank of England, Lombard Street runs southeast for a short distance before bearing left into a more easterly direction. 
Wall Street
(i) Wall Street is a street in lower Manhattan that is the original home of the New York Stock Exchange and the historic headquarters of the largest U.S. brokerages and investment banks.
(ii) The term Wall Street is also used as a collective name for the financial and investment community, which includes stock exchanges and large banks, brokerages, securities and underwriting firms, and big businesses.
(iii) Today, brokerages are geographically diverse, allowing investors free access to the same information available to Wall Streets tycoons.

The stock exchanges rendered various services to the community, company and investors. They are as follows
(i) Benefits to the community :
(a) Economic development : It accelerates the economic development by ensuring steady flow of savings into productive purposes.
(b) Fund ralsmg platform : It enables the well managed, profit making companies to raise limitless funds by fresh issued of shares. from time to time.
(c) Tools to divert resources : Scarce resources are thus diverted to efficiently run enterprises for better utilisation.
(d) Capital Formation It encourages capital formation.
(e) Fund Raiser for Government
(a) It enables Government to raise funds for undertaking projects through sale of securities on the stock exchange.
(b) Thus stock exchange serves as a platform for raising public debt.
(ii) Benefit to the company:
(a) Enhances goodwill or reputation : Companies who shares are quoted on a stock exchange enjoy greater goodwill and credit standing.
(b) Wide market : There is a wide and ready market for such securities.
(c) Raises huge funds: Stock exchange can raise huge funds easily by issue of shares and debentures.
(d) Increases bargaining strength
Companies whose shares rise in the stock exchange command higher bargaining power in the event of further expansion, merger or amalgamation.
(iii) Benefit to investors:
(a) Liquidity: Stock exchange helps an investors to convert his shares into cash quickly and thus increases the liquidity of his investments.
(i) Adding collateral value of security
The fact that a security is dealt on a stock exchange makes it a good collateral security for obtaining loan from banks.
(iii) Investor protection
The stock exchange safeguards, investor's interest and ensures fair dealing by strictly enforcing its rules and regulations.
(iv) Assessing real worth of security.
An investor can easilý assess the real worth of securities in his hands, as market quotations are published daily in the newspapers and in websites.
(v) Mechanism to trade security
Stock Exchange provides a mechanism by which purchase and sale of listed securities take place in a matter of few minutes.

The various features of stock exchanges are as follows:
(i) Market for securities :
Stock exchange is a market, where securities of corporate bodies, government and semi-government bodies are bought and sold.
(ii) Deals in second hand securities :
(a) It deals with shares, debentures, bonds and such securities already issued by the companies.
(b) In short, it deals with existing or second hand securities and hence it is called secondary market.
(iii) Association of persons :
A stock exchange is an association of persons or body of individuals which may be registered or Unregistered.
(iv) Recognition from central Government :
Stock exchange is an organised market. It requires recognition from the Central Government.
(v) Working as per Rules :
(a) Buying and selling transactions in securities at the stock exchange are governed by the rules and regulations of stock exchange as well as SEBI Guidelines.
(b) No deviation from the rules and guidelines is allowed in any case.

The various functions of stock exchange are as follows:
(i) Ready and continuous market:
(a) Stock exchange is a market for existing securities.
(b) If an investor wants to sell his securities, he can easily and quickly dispose them off on a stock exchange.
(ii) Correct evaluation of securities:
(a) The prices at which securities are bought and sold are recorded and made public.
(b) These prices are called "market quotations".
(iii) Protection to investors :
(a) All dealings in a stock exchange are in accordance with well-defined rules and regulations.
(b) For example, brokers cannot charge higher rate of commission for their services. Any malpractice will be severely punished.
(iv) Proper channalisation of capital :
(a) People like to invest in the shares of such companies which yield good profits.
(b) The savings of individuals are directed towards promising companies which declare good dividends over a period of time.
(v) Aid to capital formation :
(a) Thepublicity whichthe stock exchange gives to varjous industrial securities and their prices.
(b) Stock exchanges thus ensures a steady flow of capital into industry and assists industrial development.