A currency is a unit of exchange, facilitating the transfer of goods and/or services. It is one form of money, where money is anything that serves as a medium of exchange, a store of value, and a standard of value. A currency is the dominant medium of exchange. To facilitate trade between currency zones, there are exchange rates, which are the prices at which currencies (and the goods and services of individual currency zones) can be exchanged against each other. Currencies can be classified as either floating currencies or fixed currencies based on their exchange rate regime. In common usage, currency sometimes refers to only paper money, as in coins and currency, but this is misleading. Coins and paper money are both forms of currency.
Early currency
The origin of currency is the creation of a circulating medium of exchange based on a unit of account which quickly becomes a store of value. Currency evolved from two basic innovations: the use of counters to assure that shipments arrived with the same goods that were shipped, and later with the use of silver ingots to represent stored value in the form of grain. Both of these developments had occurred by 2000 BC. Originally money was a form of receipting grain stored in temple granaries in ancient Egypt and Mesopotamia.
This first stage of currency, where metals were used to represent stored value, and symbols to represent commodities, formed the basis of trade in the Fertile Crescent for over 1500 years. However, the collapse of the Near Eastern trading system pointed to a flaw: in an era where there was no place that was safe to store value, the value of a circulating medium could only be as sound as the forces that defended that store. Trade could only reach as far as the credibility of that military. By the late Bronze Age, however, a series of international treaties had established safe passage for merchants around the Eastern Mediterranean, spreading from Minoan Crete and Mycenae in the North West to Elam and Bahrein in the South East. Although it is not known what functioned as a currency to facilitate these exchanges, it is thought that ox-hide shaped ingots of copper, produced in Cyprus may have functioned as a currency.
The Stock Market of India was set up in 1875. At that time there were 22 brokers who met and established the Bombay Stock Exchange. From that time onwards the Indian Stock market has grown in leaps and bounds, and has become a forceful and competent stock market in the continent. It is equal to any international market in the world. It has the same level of efficiency and organizational ability. The market caters to the huge population of India and gives them investment opportunities. It also provides the institutions and organizations with funds. The unpredictable nature of the Indian stock market has made it very difficult for the common man to understand it. So prior to investing in the stock market you have to research it properly.
When it was started the Bombay Stock Exchange had only a few hundred people taking membership in Stock Broker Association and Native Share. In 1965 BSE was recognized permanently by the Government of India, The BSE and National stock exchange are both the main stock exchange of Indian stock market. Government of India gave permanent identification to the BSE. BSE along with National Stock Exchange both are main part of Indian Share Market and are the two national stock exchanges of India. BSE has about 5000 listings at the starting.
The stock and shares are issued to the public for investing in various companies. The revenue generated from the stocks and shares is used for business expansion or any government projects. The profit of the company is then shared by the public, which has invested in the company. The share market allows for public trading of companies and has become an important source of raising fund for the companies. The government has also formed the Securities and Exchange Board of India (SEBI) which controls the functioning of stock exchanges, investment advisors, portfolio managers, brokers and sub-brokers. The sensex is made on the basis of the performance of the stocks of 30 sound financial companies.