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STOCK MARKET.

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Presentation on theme: "STOCK MARKET."— Presentation transcript:

1 STOCK MARKET

2 CONTENTS FEATURES OF STOCK MARKET IMPORTANCE OF STOCK MARKET
INTRODUCTION TO STOCK MARKET FEATURES OF STOCK MARKET IMPORTANCE OF STOCK MARKET FUNCTION OF STOCK MARKET CLASSIFICATION OF STOCK MARKET STOCK INDICES CONCLUSION

3 STOCK EXCHANGE Stocks are issued by companies in order to raise capitals and are bought by investors in order to acquire a portion of the company. Stock exchange means anybody of individual whether incorporated or not ,constituted for the purpose of assisting ,regulating or controlling the business of buying ,selling or dealing in securities “. (Securities Contract (Regulation) Act ,1956)

4 Features of stock exchange
It is a place where securities issued by companies, govt. & other authorities are purchased & sold. Its area of operation or geographical jurisdiction is well defined. Its purpose is to assist & regulate buying & selling in securities. It operates as per rules 7 guidelines issued by the Securities & Exchange Board Of India (SEBI).

5 Importance of stock exchange
Stock exchange is a organized securities market which provides sufficient marketability to shares & debentures. Stock exchange provide a reasonable measure of safety & fair dealing in the buying & selling of securities. It constitutes the prime centre through which bulk of investment activities are conducted by individual & institutional operators. Stock exchange play an important part to speed up the process of economic in the country. Stock exchange has been described as the pulse of the economy of the country.

6 Functions of Stock Exchange
Provide central and convenient meeting places for sellers and buyer of securities Increase the marketability and liquidity of securities Contribute to stability of prices of securities Equalization of price of securities Smoothen price movement Help the investors to know the worth of their holdings Promote the habit of saving and investment Help companies and government to raise funds from the investors Provide forecasting service

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8 BOMBAY STOCK EXCHANGE BSE Limited formerly known as Bombay Stock Exchange (BSE) , is the oldest stock exchange in Asia. It is a stock exchange located on Dalal Street, Mumbai. The equity market capitalization of the companies listed on the BSE was US$1 trillion as of December 2012 It the 6th largest stock exchange in Asia and the 14th largest in the world.

9 BSE was established in 1875 as “The Native Share & Stock Brokers”.
First Stock Exchange in the country to obtain permanent recognition in from GOI. Around 4700 Indian companies listed with Stock Exchange. As of 2012, it is among the five biggest Stock Exchanges in the world in terms of transactions volume. As of March 2012, there are over 5,133 listed Indian companies and over 8,196 scrip's on the stock exchange, the Bombay Stock Exchange has a significant trading volume. The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia.

10 NATIONAL STOCK EXCHANGE
The National Stock Exchange (NSE) is stock exchange located at Mumbai, India. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%. In the year 1991 Pherwani Committee recommended to establish National Stock Exchange (NSE) in India.

11 It is the 16th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization of around US 985 billion and over 1,646 listings as of December 2012. In National Stock Exchange there is trading of equity shares, bonds and government securities.

12 NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. In 2012, NSE was the third largest stock exchange in the world in terms of the number of contracts (1221 million) traded in equity derivatives. Presently there are 24 stock exchanges in India, out of which 20 have exchanges National Stock Exchange (NSE)

13 MULTI COMMODITY EXCHANGE OF INDIA LTD (MCX)
Multi Commodity Exchange of India Ltd (MCX) is an independent commodity exchange based in India To facilitate online trading and clearing & settlement operations for commodity futures across the country. MCX hold’s market share of over 80% of the Indian commodity future market MCX is the world largest exchange in Silver, second largest in Gold, Copper and Natural Gas, and third largest in Crude Oil Futures

14 OVER THE COUNTER EXCHANGE OF INDIA (OTCEI)
Incorporated in 1990, setup to aid enterprising promoters in raising finance for new projects. To provide investors with a transparent efficient mode of trading. OTCEI introduced a screen based nation wide trading. OTCEI introduced many novel concepts to the Indian capital markets such as screen-based nationwide trading, sponsorship of companies, market making and scrip less trading. The first Indian stock exchange to introduce nationwide computerized screen based trading.

15 STOCK INDICES

16 BULLS & BEARS

17 BULLS A Bull Market indicates the constant upward movement of the stock market. A particular stock that seems to be increasing in value is described to be bullish

18 BEARS A bear market indicates the continuous downward movement of the stock market. Stock that seems to be decreasing in value is described to be bearish.

19 STOCK BROKER A stockbroker is person who is licensed to trade in shares. Brokers also have direct access to the share market and can act as an agent in share transactions. For this service they charge a fee i.e. brokerage. They can also offer additional services like advice on shares, debentures, government bonds and listed property trusts and non- listed investment options

20 TRADING IN STOCK MARKET
The market regulator, the Securities and Exchange Board of India (SEBI), has made it compulsory to open the demat account if you want to buy and sell stocks. A person want to buy/sell stocks in the stock market has to first place his/her order with a broker or can do themselves using online trading systems. The stocks purchased will be sent to the your demat account. This process is called Rolling Settlement Cycle.

21 CONCLUSION The stock exchange is considered to be the barometer of economic activity. Stock exchange regulate and monitor trading activity SEBI regulate the functions of stock exchange Secondary market provides a platform for sale of already issued and listed securities.


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