Tag : Definition

What Is Business Environment? Definition & Factors – Video & Lesson Transcript

#business environment

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What Is Business Environment? – Definition & Factors

Businesses do not operate in a vacuum; they operate in an environment. In this lesson, you’ll learn about the business environment, including what makes it up. A short quiz follows the lesson.

Business Environment Defined

Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business. For example, a health and safety regulation is an external factor that influences the internal environment of business operations. Additionally, some external factors are beyond your control. These factors are often called external constraints. Let’s take a look at some key environmental factors.

External Factors

Political factors are governmental activities and political conditions that may affect your business. Examples include laws, regulations, tariffs and other trade barriers, war, and social unrest.

Macroeconomic factors are factors that affect the entire economy, not just your business. Examples include things like interest rates, unemployment rates, currency exchange rates, consumer confidence, consumer discretionary income, consumer savings rates, recessions, and depressions.

Microeconomic factors are factors that can affect your business, such as market size, demand, supply, relationships with suppliers and your distribution chain, such as retail stores that sell your products, and the number and strength of your competition.

Social factors are basically sociological factors related to general society and social relations that affect your business. Social factors include social movements, such as environmental movements, as well as changes in fashion and consumer preferences. For example, clothing fashions change with the season, and there is a current trend towards green construction and organic foods.

Technological factors are technological innovations that can either benefit or hurt your business. Some technological innovations can increase your productivity and profit margins, such as computer software and automated production. On the other hand, some technological innovations pose an existential threat to a business, such as Internet streaming challenging the DVD rental business.

Internal Factors

Organizational culture is the framework of values, vision, norms, and customs shared by the members of an organization. Your business culture affects how the employees in your business interact with each other, its customers, and other stakeholders.

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Organizational structure is the manner in which the business is organized to conduct its activities. Organizations can be organized fairly flat, with very few levels of hierarchy, or organized very vertical, with many levels of hierarchy. The manner in which an organization is structured will affect how your business is managed and how much control individual employees have over their work.

Management structure is the manner in which your business is managed. Management may be centralized, where all decision-making is made at the top and filtered down throughout the business, or it may be decentralized, where the decision-making is distributed throughout the organization and decisions are made closer to the relevant work activities or problems.

Lesson Summary

Business environment includes the external and internal factors that influence a business. External factors include political factors, macroeconomic factors, microeconomic factors, social factors, and technological factors. Internal factors are factors from inside the organization that affect a business, such as organizational culture, organizational structure, and management structure.

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Business Banking Definition #business #loans #bad #credit


#business banking

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Business Banking

What is ‘Business Banking’

Business banking is a company’s financial dealings with an institution that provides business loans, credit, savings and checking accounts specifically for companies and not for individuals. Business banking is also known as commercial banking and occurs when a bank, or division of a bank, only deals with businesses. A bank that deals mainly with individuals is generally called a retail bank, while a bank that deals with capital markets is known as an investment bank.

BREAKING DOWN ‘Business Banking’

In the past, investment banks and retail/commercial banks had to be separate entities under the Glass-Steagall Act, but changes to the law made it so a single bank can deal with business banking, retail banking and investment banking. The Glass-Steagall Act is also known as the Banking Act of 1933, and was introduced to manage speculation. Parts of the act were repealed in 1999, making it no longer illegal for an investment bank to also engage in business/commercial and retail banking.

Services Offered by Business Banks

Business banks provide a wide range of services to companies of all sizes. In addition to business checking and savings accounts, business banks offer a range of financing options and cash management solutions.

Bank Financing: Bank financing is a primary source of capital for business expansion, acquisitions and equipment purchases, or simply to meet growing operating expenses. Depending on a business’ needs, business banks can offer fixed term loans, short and long term, as well as lines of credit and asset-based loans. Banks are also a main source of equipment financing, either through fixed loans or equipment leasing. Some banks specialize in lending in certain industries, such as agriculture, construction and commercial real estate.

Cash Management: Also referred to as treasury management, cash management services help businesses achieve greater efficiency in managing the cash coming into the business, or receivables; cash going out of the business, or payables; and cash on hand, or liquidity. Utilizing the latest digital technology, business banks set up specific processes for businesses that help them streamline their cash management, resulting in lower costs and more cash on hand.

Banks provide businesses with access to Automated Clearing House (ACH) and electronic payment processing for accelerating the transfer of money in and out of the business. They also allow for the automatic movement of money from idle checking accounts into interest-bearing savings accounts, so surplus cash is put to work while the business checking account has just what it needs for the day’s payments. Businesses have access to a customized online platform that links their cash management processes to their checking and savings account for a real-time view of their cash in action.



What is business process? Definition from #stock #markets #today


#business process

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business process

A business process is an activity or set of activities that will accomplish a specific organizational goal. Business process management (BPM) is a systematic approach to improving those processes. If an organization is unable to perform certain business processes internally due to cost or resources, the company might utilize business process outsourcing (BPO). Many organizations contract specific business tasks, such as payroll, human resources (HR) or accounting, to a third-party service provider.

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To measure success of a business process, organizations track successful completion of different steps within the process, i.e. benchmarks. or reaching the end point of the process. When a business process is not helping an organization reach a goal within timeline or with the resources at hand, there are a number of strategies to execute for improvements. Business process mapping is often undertaken as an exercise during business process re-engineering and process transformation to improve a maybe unsuccessful business process. Organizations might also focus on business process visibility to identify issues in process performance or execution.

Business processes categories

Depending on the organization, industry and nature of work, business processes are often broken up into different categories. Categories include:

  • Operational processes (or primary processes): Operational or primary processes deal with the core business and value chain. These processes deliver value to the customer by helping to produce a product or service. Operational processes represent essential business activities that accomplish business objectives, e.g. generating revenue. Some examples of this include taking customer orders and managing bank accounts.
  • Supporting processes (or secondary processes): Supporting processes back core processes and functions within an organization. Examples of supporting or management processes include accounting, HR management and workplace safety. One key differentiator between operational and support processes is that support processes do not provide value to customers directly.
  • Management processes: Management processes measure, monitor and control activities related to business procedures and systems. Examples of management processes include internal communications, governance. strategic planning. budgeting, and infrastructure or capacity management. Like supporting processes, management processes do not provide value directly to the customers.

Business process mapping or modeling

Business processes are often depicted visually with a flowchart showing a sequence of tasks with certain benchmarks or decision points. Business process mapping or modeling illustrates pictorially, through graphs and charts, how certain processes flow into others.

There a few different ways to think about business process mapping and workflow :

  • Sequential business process. Sequential business processes are outlined on a document with clear start and end points. When following this process map, an organization performs the series of actions in order to complete the task within the constraints of a predetermined timeline.
  • Status-driven business process. A status-driven business process doesn’t have strict start and end points. These processes can finish at any stage depending on workflow changes, nature or production or the office culture. Also, it is typical for status-driven processes to recur or cycle on the same step in the process.
  • Parallel business process. When activities in a business process are executed in parallel, they are carried out simultaneously. In this type of business process execution, the activities on all branches must be completed before the next step in the business process can commence.

This was last updated in June 2016

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Related Terms

CEO and other C-suite executive titles The CEO, or chief executive officer, is part of the C-suite. Other C-suite executive titles include the chief financial officer. See complete definition innovation management Innovation management is the process of managing an organization’s innovation procedure, which helps increase competitive. See complete definition product development (new product development, or NPD) Product development, or new product development (NPD), is the process of bringing new or updated products or services to a target. See complete definition

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Captive Finance Company Definition #loans #for #a #business


#finance companies

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Captive Finance Company

What is a ‘Captive Finance Company’

A captive finance company is a subsidiary whose purpose is to provide financing to customers buying the parent company’s product. Captive finance companies can range in size from mid-sized entities to giant firms, depending on the size of the parent company. Their range of services can also vary widely, from basic card services to full-scale banking. A captive finance company can be a source of significant profits for the parent organization.

BREAKING DOWN ‘Captive Finance Company’

A captive finance company is usually wholly owned by the parent organization. The best-known examples of such companies are the giant subsidiaries of the “Big Three” automakers, and the store card operations of large retailers such as Wal-Mart, Target and Sears.

Due to the size and scale of their operations, the captive finance companies of the Big Three car manufacturers: General Motors Acceptance Corporation (GMAC), Chrysler Financial and Ford Motor Credit Company – are arguably almost as well-known as their parent companies. Note that subsequent to the bankruptcy of General Motors in 2009, GMAC underwent a name change to Ally Bank and rebranded as Ally Financial in 2010.



Business-to-Business (B2B) Definition – What is Business-to-Business (B2B) #comcast #business #phone


#business to business

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Business-to-Business (B2B)

What is Business-to-Business (B2B)?

Business-to-business B2B refers to commerce between two businesses rather than to commerce between a business and an individual consumer. Transactions at the wholesale level are usually business-to-business while those at the retail level are most often business-to-consumer (B2C).

Recognizing Business-to-Business

The dollar value of business-to-business transactions is significantly higher than business-to-consumer activity because businesses are more likely to purchase higher priced goods and services and purchase more of them than consumers are. A bicycle manufacturer, for example, will purchase a truckload of bicycle tires or a coffee manufacturer will buy a massive, industrial bean grinder. Compare that with what s purchased by a biking enthusiast or the individual coffee aficionado.

How Business-to-Business Selling is Different

Selling to a business is different from selling to an individual consumer. Key sales and marketing differences for business-to-business transactions include:

  • Selling sometimes requires participating in a bidding process by responding to a purchaser s request for proposals. On the business-to-consumer side, this compares to asking various auto dealers to provide their best offer on a specific make and model.
  • The decision-making process on a purchase can take days, weeks, or months, depending on how the purchasing company works and the size and nature of the order.
  • Purchasing decisions are often made by committees, so each member needs to be educated and sold.
  • The dollar value of goods or services sold is much higher than on the consumer or retail level, so the buyer needs to take steps to minimize risk. That sometimes involves requesting a product prototype or customization.

Business-to-Business Doesn t Exclude Business-to-Consumer

A company selling to businesses can also sell directly to consumers. A bead manufacturer selling its beads in bulk to costume jewelry manufacturers might also package them in smaller quantities sold to crafters at craft stores. A telephone manufacturer can sell in bulk to companies or one at a time to consumers shopping online or at an office supply store. A firm that provides health and wellness consulting to corporations can also advise individuals one-on-one or in group presentations.

It s About the Customer, Not the Transaction Size

While business-to-business transactions often involve high prices and volume, they can also happen on a much smaller scale when a small business sells products or services to another small business. The hallmark of business-to-business commerce then, is the participants two businesses rather than a business and a consumer.

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Business Process Management Definition #sba #loan #programs


#business process management

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Business Process Management (BPM)

BPM (Business Process Management) is a business solution approach which views a business as a set of processes or workflows. BPM Software is software which enables businesses to model, implement, execute, monitor and optimize their processes.

Disambiguation: BPM can stand for several things, such as Beats for Minute, Beam Propagation Method, and Sirius XM (a satellite radio channel), but this article is about its use in business process management. Below are several examples of concepts, methodologies and features, which have become prevalent in the business world since the introduction of BPM approaches and technology.

For a closer look into the core concepts of BPM, best practises and project methodology, check out our BPM Traveler s Guide eBook :

Watch a Video: What is BPM?

The following 3 minute video explains the main concepts behind BPM, using an example of a Customer Self Service application:

Core Concept the Workflow

In BPM frameworks, solutions are nearly always based on a workflow or set of workflows. The concept is that work in a real-time business environment should not be static, rather it should progress through a series of steps ( a process ) in time. Basing a solution on sequential activities is effective in encouraging teams to reach completion of goals within a set period. The system encourages progression through tasks by sending the participants reminders and indications of their completion status and due date. Because of this, teams who use BPM solutions tend to perform faster and accomplish goals more consistently.

Beyond Workflow to BPM

While there are various types of workflow software, BPM software is distinguished in that it provides additional capabilities, beyond just workflow. These capabilities round out the BPM suite s ability to cover a fuller business scenario. They typically include:

  • Business Rule management
  • Integration with external systems
  • An end user environment
  • Charts and Analytics
  • Communications between users

Common Terms

Here we provide a set of terms that are commonly used in relation to BPM applications:

Types

  • BPMS: A Business Process Management Suite. A software suite which enables a business/organisation to implement BPM solutions.
  • Intelligent BPM: A Gartner concept, which describes the next generation of BPM suites. These are suites which include intelligent features such as adaptive analytics, mobility, social collaboration, ad hoc processes, and cloud deployment.
  • iBPMS: An Intelligent Business Process Management Suite (as defined by Garter in their Magic Quadrant for iBPMS 2012).
  • Predictive: Features which enable predicting the outcome of processes by extrapolating analytics in real time.
  • Adaptive: A framework which enables processes to be adapted as they are run in production based on dynamically changing conditions.

Features and Deployments:

  • Mobile: Management/operation of business processes via mobile devices
  • Social: Social process features, such as Questions and Answers, Comments, Process Wall, etc.
  • Cloud: A business process solution that is deployed over the cloud. Companies are opting for cloud options more and more frequently as it provides fast time-to-solution with low infrastructure costs.
  • On-premises: A solution that is deployed on premises.

Solutions:

  • Horizontal solutions: Solutions that can be applied across several industries.
  • Vertical solutions: Solutions that are specific to a particular industry or type of process.

Additional Concepts:

  • BPMN: A graphical representation for specifying business processes in a business process model. It was previously known as Business Process Modeling Notation .
  • ROI: The return on investment from implementing a BPM solution.
  • SOA: A solution which implements a SOA (Software as a Service) model.
  • BPM for Enterprise: A BPMS which is robust and scalable enough to provide a viable solution for a larger enterprise.
  • BPM for SME: A BPMS which is appropriate for SMEs in its scope and scalability.
  • Iterative BPM: A model for improvement whereby processes are optimized in an iterative fashion.
  • Case Management: A parallel discipline to Business Process Management (overlapping in some cases) whereby each instance of the solution focuses on solving a particular case. A knowledge worker solves each case, employing unstructured processes and other resources. Learn more about case management and case management software
  • Intelligent Analytics: Analytics which can be plugged back into the process to optimize its performance/flow over time. Intelligent Analytics are an integral part of Intelligent BPM.

Methodologies and Tools:

  • Lifecycle/Cycle of Improvement: the cyclical lifecycle of a project which includes: Modelling, Implementation, Monitoring, Improvement
  • BPM Methodology: A methodology which promotes the above-mentioned life cycle of improvement and other best practises.
  • Collaborative BPM: A methodology which promotes social features and collaboration between stakeholders to improve process performance.
  • BPEL: Business Process Execution Language for Web Services.
  • Business Intelligence (BI): Software systems and tools that extract practical conclusions from accumulated data.
  • Business Analytics: Accumulated and organised data on business processes that enable stakeholders to monitor and analyze process metrics, and respond to changes.
  • Process Discovery: A system whereby areas of operation which could benefit from a solution are discovered.
  • Simulation: A method of simulating process execution before or during development.
  • Business Process Modeling Tool: A software tool that enables Business Analysts, Managers, Architects to create business process diagrams.

iBPMS vs. BPMS

While Business Process Management Suites have been around for more than a decade, Gartner (who coined the term BPM ) has recently introduced a second concept: iBPMS. Standing for Intelligent BPM Suite , Gartner defines an iBPMS as a suite with next-generation features which enable intelligent business operations, such as intelligent analytics (processes that learn to perform better over time based on real-time data), and advanced mobile, social and cloud capabilities.

When you purchase a new phone, do you buy a classic model, or a smartphone? The answer should be obvious – the smartphone. PNMsoft Sequence iBPMS (Intelligent Business Process Management Suite) is the only Microsoft-technology based pure play vendor defined by Gartner as an Intelligent BPM Suite (Gartner s iBPMS Magic Quadrant from 2012 and onward). For companies with Microsoft infrastructure such as SharePoint, Dynamics, Office, Azure, it is the leading choice for Process Management software .

Sequence Intelligent BPM Suite

PNMsoft’s Sequence iBPMS goes beyond the classic feature set of suites and incorporates:

  • Process Optimizing Analytics
  • Dynamic Process Change
  • Case Management Work Optimization
  • Communication with External Systems
  • Social Collaboration
  • Mobile Process Operation
  • iBPMS Cloud Services

…with unique HotChange ® technology.

PNMsoft is positioned on Gartner’s iBPMS Magic Quadrant.

Complete the form below to download our BPM Traveler s Guide eBook:



What Is Business Environment? Definition & Factors – Video & Lesson Transcript

#business environment

#

What Is Business Environment? – Definition & Factors

Businesses do not operate in a vacuum; they operate in an environment. In this lesson, you’ll learn about the business environment, including what makes it up. A short quiz follows the lesson.

Business Environment Defined

Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business. For example, a health and safety regulation is an external factor that influences the internal environment of business operations. Additionally, some external factors are beyond your control. These factors are often called external constraints. Let’s take a look at some key environmental factors.

External Factors

Political factors are governmental activities and political conditions that may affect your business. Examples include laws, regulations, tariffs and other trade barriers, war, and social unrest.

Macroeconomic factors are factors that affect the entire economy, not just your business. Examples include things like interest rates, unemployment rates, currency exchange rates, consumer confidence, consumer discretionary income, consumer savings rates, recessions, and depressions.

Microeconomic factors are factors that can affect your business, such as market size, demand, supply, relationships with suppliers and your distribution chain, such as retail stores that sell your products, and the number and strength of your competition.

Social factors are basically sociological factors related to general society and social relations that affect your business. Social factors include social movements, such as environmental movements, as well as changes in fashion and consumer preferences. For example, clothing fashions change with the season, and there is a current trend towards green construction and organic foods.

Technological factors are technological innovations that can either benefit or hurt your business. Some technological innovations can increase your productivity and profit margins, such as computer software and automated production. On the other hand, some technological innovations pose an existential threat to a business, such as Internet streaming challenging the DVD rental business.

Internal Factors

Organizational culture is the framework of values, vision, norms, and customs shared by the members of an organization. Your business culture affects how the employees in your business interact with each other, its customers, and other stakeholders.

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Organizational structure is the manner in which the business is organized to conduct its activities. Organizations can be organized fairly flat, with very few levels of hierarchy, or organized very vertical, with many levels of hierarchy. The manner in which an organization is structured will affect how your business is managed and how much control individual employees have over their work.

Management structure is the manner in which your business is managed. Management may be centralized, where all decision-making is made at the top and filtered down throughout the business, or it may be decentralized, where the decision-making is distributed throughout the organization and decisions are made closer to the relevant work activities or problems.

Lesson Summary

Business environment includes the external and internal factors that influence a business. External factors include political factors, macroeconomic factors, microeconomic factors, social factors, and technological factors. Internal factors are factors from inside the organization that affect a business, such as organizational culture, organizational structure, and management structure.

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Business Economics Definition #stock #market #results


#business economics

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Business Economics

What is ‘Business Economics’

Business economics is the study of the financial issues and challenges faced by corporations operating in a specified marketplace or economy. Business economics deals with issues such as business organization, management, expansion and strategy. Studies might include how and why corporations expand, the impact of entrepreneurs. the interactions between corporations, and the role of governments in regulation.

BREAKING DOWN ‘Business Economics’

Economics refers to the study of the components and functions of a particular marketplace or economy, such as supply and demand and the effect of the concept of scarcity. Within an economy, issues regarding production may be examined, as well as distribution methods. Further, consumption by the associated economy’s population can be analyzed.

Factors Within Business Operations

Business economics focuses on the factors within business operations and how they relate to the economy as a whole. It integrates economic principles and strategies into standard business practices. This can include the acquisition of necessary capital, the generation of profit, the efficiency of production and overall management strategy. It includes issues of how other economic external factors can influence business decisions, such as a change in industry regulation or a sudden price shift in a necessary production materials.

Managerial Economics

Managerial economics focuses on the microeconomic factors that are used in the decision-making process with an organization. Corporations make strategic decisions that can result in a profit or loss. Managerial economic principles guide how and why corporations make certain decisions.

Managerial economics apply to the public and private sectors, and for-profit and not-for-profit organizations alike. All organizations must address issues in the internal and external economies to remain solvent, as all organizations require a source of funding to continue operations.

The goal of managerial economics is to utilize the available resources, maximizing production while minimizing waste. While nonprofits may put their focus on raising donations, for-profits instead focus on sales of goods or services. Each organization wants to limit waste to maximize the overall usefulness of the available resources. Each uses the same principles to meet the associated goals of maintaining the funds necessary to continue working within the economy.

Both also require the same forms of attention and expertise, such as advertising and community or customer support, and require leadership to make decisions regarding the best way to negotiate current economic conditions.

Economics Oriented Associations

In the United States, the National Association for Business Economics (NABE) is the professional association for business economists. The organization’s mission is “to provide leadership in the use and understanding of economics.” In the United Kingdom, the professional organization is the Society of Business Economists.



Current Price Definition #business #development #manager


#current stock market

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Current Price

What does ‘Current Price’ mean

The current price is the actual selling price of a security trading on an exchange, as well as the most recent price of a security listed in an investment portfolio. In the case of a bond, a bond’s current price will often be quoted as 10% of the par value of $1000. A bond that currently trades at $99 is really priced at $990. Current price also refers to the present price of a stock, currency, commodity, stamps or a precious metal.

BREAKING DOWN ‘Current Price’

Also known as the market value. the current price is the price at which goods are currently being sold in the market. Similar to market price. which is the price determined by buyers and sellers in an open market. the current price of a security is the price at which a security last traded. In that regard, the current price can function as a baseline when estimating the price a buyer would be willing to pay and the seller would be will to accept for a subsequent transaction involving the purchase and sale of the same security.

Current Price on Stock Exchanges

On a stock exchange, the current price of a security is determined by the last amount that was paid by an investor during a trade. The current price does not dictate the next sale price as changes to the supply and demand associated with the security will shift prices accordingly.

Often, the current price can be used as an indicator to approximate what would be considered a fair price in the open market, but this is not a guarantee that any subsequent transactions will be completed at that price.

Current Price in Over-the-Counter Trades

When a security is listed over the counter instead of on an exchange, the current price is based on the current bid price listed by buyers and the current ask price listed by sellers. Considered dynamic in nature, the current price fluctuates based on the principles of supply and demand.

Current Price in the Bond Market

A bond’s current price is determined by comparing the current interest rate to the interest rate associated with the bind. The face value is then adjusted based on the remaining interest payments due until the bond reaches maturity. The closer a bond is to maturity, the closer the current price will be to the face value listed on the bond.

Current Price in Retail Environment

Within a retail environment, the current price reflects the amount actively being charged to customers at that moment. This can be separate from the retail price, such as where an item is on sale, and can fluctuate depending on the store from which the item is purchased.



Definition of Stock Market – The Economic Times #small #business #websites


#stock markets

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Definition of ‘Stock Market’

Definition: It is a place where shares of pubic listed companies are traded. The primary market is where companies float shares to the general public in an initial public offering (IPO) to raise capital.

Description: Once new securities have been sold in the primary market, they are traded in the secondary market—where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon. The secondary market or the stock exchanges are regulated by the regulatory authority. In India, the secondary and primary markets are governed by the Security and Exchange Board of India (SEBI).

A stock exchange facilitates stock brokers to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India’s premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.

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