Who coined the term 'SENSEX'? Interesting stock market facts

The stock market is a fascinating realm that attracts the curiosity of investors worldwide. While India's stock market is gaining prominence, it still lags in terms of investor participation compared to the United States. This lack of awareness is primarily due to the confusing nature of the Indian stock exchange landscape.

However, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have emerged as the key players in the Indian stock market, facilitating online trading activities. Understanding the workings of the stock market, including trading processes and hours, is crucial for potential investors. Let's explore some mind-blowing facts about the stock market that can enrich our understanding of this dynamic arena.

The Sensex and Deepak Mohoni:

The Sensex, the widely followed index representing the BSE, owes its name to Deepak Mohoni. A chemical engineer from IIT Kanpur and a post-graduate from IIM Calcutta, Mohoni popularized technical analysis charts in India. Though not a proponent of technical analysis himself, Mohoni coined the term "Sensex" to refer to the Bombay Stock Exchange Sensitive Index, simplifying the earlier cumbersome name. His contributions have helped interpret market information, both technical and fundamental, in a more meaningful way.

Trading Operations at the Stock Exchange:

The trading process at the Indian stock exchange resembles that of exchanges in other countries. Most trading orders occur through an electronic limit order book, with investors placing their orders online through authorized stock brokers within the specified time frame. The stock market operates from Monday to Friday between 9:30 am and 3:30 pm, and all trading activities must occur within these working hours. Settlement of transactions typically takes T+2 days, although SEBI's new circular implemented on January 27, 2023, requires trade-related transactions to be settled in T+1 day.

Crucial Stock Market Facts: a. The Rule of 72: Investors often wonder how long it will take for their investment to double. The rule of 72 provides an estimation by dividing 72 by the expected annual growth rate. For example, an investment of Rs. 1,00,000 at a 9% growth rate would take approximately 8 years to double. b. Costliest Stocks: In India, stocks like MRF, Page Industries, and Honeywell Automation are among the costliest.

However, Berkshire Hathaway holds the title for the most expensive stock globally, with a single share costing around $2,41,554 or 2 crore INR. c. Somalia's Pirate Exchange: Somalia operates an illegal pirate exchange, primarily dealing with funds obtained through ransom and illegal activities. This exchange, which has evaded closure, operates around the clock and lists over 70 firms. d. Different Stock Categories: Small-cap stocks offer high returns but come with higher risks and frequent price fluctuations. Large-cap stocks, on the other hand, are relatively safer for long-term investments, albeit with lower returns.

Mid-cap stocks strike a balance, providing moderate returns with a comparatively lower degree of risk. e. October Trivia: October has witnessed two historic stock market crashes. On October 29, 1929, the Dow Jones experienced a massive 25% fall, and on October 19, 1987, another crash occurred with a 22% decline due to sudden recessionary pressure. f. Oldest Stock Market: The Amsterdam Stock Exchange, established in 1602 by the Dutch East India Company, was the world's first stock exchange. Subsequently, several other exchanges, including the Philadelphia Stock Exchange (1790), London Stock Exchange (1801), New York Stock Exchange (1817), Toronto Stock Exchange