If a stock is traded on both NSE and BSE, and I decide to buy the stock, how do I decide whether to buy on NSE or BSE. Let me be more specific, I wish to invest in Kale Consultants. How do I decide whether to buy this on NSE or BSE?
Well, that's no brainer, is it? Buy on the exchange that offers the lower price and fees/commissions. In reality, the price is likely to be the same, because otherwise you could buy the stock on one exchange and simultaneosly sell the same stock on the other exchange, thus making a risk-free profit in the arbitrage.
By the way, New York Stock Exchange is NYSE, not NSE, if that's what you meant.
Joined: Apr 10, 2006
sorry, I should have been more specific. This question is w.r.t. India. NSE is National Stock Exchange and BSE is Bombay Stock Exchange.
Originally posted by Anoushka Sharma: If a stock is traded on both NSE and BSE, and I decide to buy the stock, how do I decide whether to buy on NSE or BSE. Let me be more specific, I wish to invest in Kale Consultants. How do I decide whether to buy this on NSE or BSE?
It doesn't matter where you buy. Some online trading account do not provide trading account with BSE. Most of the time there is no difference in stock price in the 2 exchanges.
BSE is much better if you are a short term trader or even a day trader. Thats because, the volume traded is much greater in the BSE than the NSE. However, keep in mind that the figures which represent the volume traded are , most of the time manipulated by the stock brokers, be it in the BSE or the NSE. By manipulation, I mean that the stock brokers themselves do continous virtual trading throught the day in order to manipulate the stock prices.NSE is based on NIfty, while BSE on Sensex.