Friday, November 23, 2018
Why do share prices of the same company differ in BSE and NSE?
Hi, let me explain in a simple way. You have gone to the market to buy one kilo tomato and you would have found that the price of tomato differs from one shop to the other; while one shop guy is selling at Rs.10 per kilo and the other shop guy is selling at Rs.11 and the other could be selling at Rs.9. You would obviously make your choice from whose shop to buy and that is the beauty of a market. BSE & NSE are two alternate markets which was created for the benefit of traders/investors. That arbitrage is essential and very much required for either of the exchanges to not have any monopoly on the prices. If there would be another stock exchange in the future (if MCX SX becomes more active) there too the prices of stocks would vary compared to BSE & NSE. Ultimately it is all about choices available in the market place. We can see similar disparity of prices in gold, silver and so on where the price per gram may vary from jeweler to jeweler and from state to state and country to country. Remember sir, there is no such thing as “efficient market”.
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Dear Sir,
ReplyDeleteWe are genuine certified Financial Instrument providers. Presently, we only focus on BG/SBLC for Lease and purchase purposes. Our Lease BG/SBLC is 4+2% and purchase at 32+2%.
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* FOR PURCHASE OF FRESH CUT BG/SBLC
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MINIMUM FACE VALUE OF BG/SBLC = EUR/USD 1M
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