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In the business world and the stock market, whenever an IPO of a big company comes and it makes a big entry in the stock market, a very special ritual is performed. You must have often seen on TV or social media that on the special occasion of listing, company promoters, officers and key people of the exchange ring a traditional bell (Listing Bell). Every investor who sees this wonderful moment is curious to know when, where and how the ringing of the bell in the stock exchange started. With the possible IPO of big companies like Reliance Jio (JIO IPO) coming into the limelight, this tradition has again come into limelight, so let us know the complete history behind it and what is its special significance.
Interesting history of the beginning of ringing of listing bell in stock exchange
This unique tradition of ringing the bell in the stock market did not start overnight, rather it has a centuries-old interesting history behind it. In the early days, when modern technology, computers and digital trading systems did not exist, wooden hammers or large bells were used to announce the start and end of trading in large markets such as the London Stock Exchange and the New York Stock Exchange (NYSE). Around 1870, a large brass bell was first formally installed on the trading floor at the New York Stock Exchange, so that a clear signal of market opening and closing could be sent to all brokers. Over time, as paperless trading and electronic stock markets were introduced, this old bell became a ceremonial and celebratory means of starting trading.
Why is ringing of bells considered very auspicious and special during IPO listing?
When a new company goes public for the first time through its IPO and enters the stock market, that day is considered no less than a big festival for the company and its investors. This bell rung by the exchange symbolizes that now the buying and selling of shares of the company has officially started and a new chapter of business is opening in the market. It is considered to be the clarion call of success, prosperity and the beginning of a new journey, which fills a new enthusiasm within the company’s founders and investors. With the echo of this bell, a new journey of the company’s market value and its financial journey comes before the world, about which everyone is very excited.
How this tradition is played in the stock markets of India and its importance
This tradition of western countries has also been adopted in a very good manner in the major stock exchanges of India like Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Whenever a big company gets listed in an IPO in India, a big ceremonial bell is placed in the magnificent auditorium or trading hall of the exchange and the company’s owner, CEO and key investors ring it together. This moment is captured in the media cameras and a positive message is sent among the investors in the country and the world that the company is fully prepared to contribute to the Indian economy. There is a lot of enthusiasm among investors about the possible IPO of a giant like Jio and the country’s largest telecom company and when it will hit the stock market, this listing bell ceremony will prove to be the biggest and historic moment in the financial history of the country.