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Who decides share prices in Stock market?

In any local vegetable market, the price of a vegetable is dependent on its demand and supply. As the demand increases, the prices too increase. On the contrary, if the supply is more, perishable commodities' prices decrease. In a simplistic sense, this is the case with share markets too.

Share markets are entities which provide a platform for trade of securities, shares, bonds and futures. They preside over the transactions, secure the trade and guarantee future agreements. Bombay Stock Exchange and National Stock Exchange are the two prominent stock exchanges in India. To trade a company's stock over a stock exchange, it has to be listed there. There are about 1552 listings in NSE (as of December 2010) and over 5000 listings in BSE. Every stock exchange has a means of keeping track of the progress of its top companies' stocks (by means of trade volume/value). This, it does for the assessment of trend in trading during a particular day. NIFTY is the key index of NSE which is based on the value of top 50 highest traded stocks while SENSEX is the key index for BSE which keeps track of the top 30 stocks.

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