CHINTU PROJECT

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CHAPTER 1

INTRODUCTION

INTRODUCTION


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A drastic slowing of the economy. The Americans, who are good at making precise

definitions, often apply the term to a situation where gross national or domestic product

has fallen in two consecutive quarters. A recession would be indicated by a slowing of a

nation's production, rising unemployment and falling interest rates, usually following a

decline in the demand for money. A popular distinction between recession and

depression is: 'Recession is when your neighbor loses his job; depression is when you

lose yours.'

In a 1975 New York Times article, economic statistician Julius Siskin suggested several

rules of thumb for defining a recession, one of which was "two down quarters of GDP".

In time, the other rules of thumb were forgotten. Some economists prefer a definition of

a 1.5% rise in unemployment within 12 months.

In the United States, the Business Cycle Dating Committee of the National Bureau of

Economic Research (NBER) is generally seen as the authority for dating US

recessions. The NBER defines an economic recession as: "a significant decline in [the]

economic activity spread across the country, lasting more than a few months, normally

visible in real GDP growth, real personal income, employment (non-farm payrolls),

industrial production, and wholesale-retail sales. Almost universally, academics,

economists, policy makers, and businesses defer to the determination by the NBER for

the precise dating of a recession's onset and end.

PROBLEM OF THE STUDY:

Stock market is one of the leading indicators to measure the performance of

the country. The study is done to evaluate the performance of the stock markets during

a global recession in the recent times

NEED FOR THE STUDY:

Stock market is an important indicator for the investors to take decision better.

OBJECTIVES OF THE STUDY:

To study various indicators that influences the decision making of the

Investors. The stock market is one of the leading indicators for decision making. The

study focuses on studying various issues of recession in the past years and its impacts

on the financial markets.
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The study focuses on the various stock market performances during the recession and

the co-relation between the U.S.A (i.e., NYSE) with the Brazil, Russia, India and China.

RESEARCH METHODOLOGY:

DATA COLLECTION METHOD:1 PRIMARY DATA: Is collected through interaction with kotak securities companys

managers and executives

2 SECONDARY DATA: The data collected through manuals issued by kotak, websites,

magazines and news papers etc.

3 STATISTICAL TOOLS USED: The statistical tools that are used in the study are

mean, standard deviation and co-relation.

4 PERIOD OF THE STUDY: The study is done for 45 days

5 LIMITATION OF THE STUDY: The study is limited to BRIC indexes with USA stock

exchange.

CHAPTER 2

REVIEW OF LITERATURE


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Stock exchange

This article is about the trading entity. For the song by Miss Kitten & The Hacker, see

Stock Exchange (song).

A stock exchange is an entity that provides services for stock brokers and traders to

trade stocks, bonds, and other securities. Stock exchanges also provide facilities for

issue and redemption of securities and other financial instruments, and capital events

including the payment of income and dividends. Securities traded on a stock exchange

include shares issued by companies, unit trusts, derivatives, pooled investment

products and bonds.

To be able to trade a security on a certain stock exchange, it must be listed there.

Usually, there is a central location at least for record keeping, but trade is increasingly

less linked to such a physical place, as modern markets are electronic networks, which
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gives them advantages of increased speed and reduced cost of transactions. Trade on

an exchange is by members only.

The initial offering of stocks and bonds to investors is by definition done in the primary

market and subsequent trading is done in the secondary market. A stock exchange is

often the most important component of a stock market. Supply and demand in stock

markets is driven by various factors that, as in all free markets, affect the price of stocks

(see stock valuation).

There is usually no compulsion to issue stock via the stock exchange itself, nor must

stock be subsequently traded on the exchange. Such trading is said to be off exchange

or over-the-counter. This is the usual way that derivatives and bonds are traded.

Increasingly, stock exchanges are part of a global market for securities.

Securities markets took centuries to develop. The idea of debt dates back to the ancient

world, as evidenced for example by ancient Mesopotamian clay tablets recording

interest-bearing loans. There is little consensus among scholars as to when corporate

stock was first traded. Some see the key event as the Dutch East India Company's

founding in 1602, while others point to earlier developments. Economist Ulrike

Malmendier of the University of California at Berkeley argues that a share market

existed as far back as ancient Rome.

In the Roman Republic, which existed for centuries before the Empire was founded;

there were societys publican rum, organizations of contractors or leaseholders who

performed temple-building and other services for the government. One such service

was the feeding of geese on the Capitoline Hill as a reward to the birds after their

honking warned of a Gallic invasion in 390 B.C. Participants in such organizations had

prates or shares, a concept mentioned various times by the statesman and orator

Cicero. In one speech, Cicero mentions "shares that had a very high price at the time."

Such evidence, in Malmendier's view, suggests the instruments were tradable, with

fluctuating values based on an organization's success. The societies declined into

obscurity in the time of the emperors, as most of their services were taken over by direct

agents of the state.
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Tradable bonds as a commonly used type of security were a more recent innovation,

spearheaded by the Italian city-states of the late medieval and early Renaissance

periods.

In 1171, the authorities of the Republic of Venice, concerned about their war-depleted

treasury, drew a forced loan from the citizenry. Such debt, known as prestiti, paid 5

percent interest per year and had an indefinite maturity date. Initially regarded with

suspicion, it came to be seen as a valuable investment that could be bought and sold.

The bond market had begun.

From 1262 to 1379, Venice never missed an interest payment, solidifying the credibility

of the new instruments. Other Italian city-states such as Florence and Genoa became

bond issuers as well, often as a means of paying for warfare. Bonds were traded widely

in Italy and beyond, a business facilitated by bankers such as the Medici.

War between Venice and Genoa resulted in suspension of prestiti interest payments in

the early 1380s, and when the market was restored, it was at a lower interest rate.

Venice's bonds traded at steep discounts for decades thereafter. Other blows to

financial stability resulted from the Hundred Years War, which caused monarchs of

France and England to default on debts to Italian banks, and the Black Death, which

ravaged much of Europe. Still, the idea of debt as a tradable investment endured.

As with bonds, the concept of stock developed gradually. Some scholars place its

origins as far back as ancient Rome. Partnership agreements dividing ownership into

shares date back at least to the 13th century, again with Italian city-states in the

vanguard. Such arrangements, however, typically extended only to a handful of people

and were of limited duration, as with shipping partnerships that applied only to a single

sea voyage.

The forefront of commercial innovation eventually shifted from Italy to northern Europe.

The Hanseatic League, an alliance of mercantile towns such as Bruges and Antwerp,operated counting houses to expedite trade. The term "bourse," which has become

synonymous with "stock market," arose in Bruges, either from a sign outside a trading

center showing one or a few purses (bursa is Latin for bag) or because merchants

gathered at the house of a man named Van der Burse; nobody's quite sure.
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By the late 1500s, British merchants were experimenting with joint-stock companies

intended to operate on an ongoing basis; one such was the Muscovy Company, which

sought to wrest trade with Russia away from hanseatic dominance. The next big step

was in Amsterdam. In 1602, the Dutch East India Company was formed as a joint-stock

company with shares that were readily tradable. The stock market had begun.

He Dutch East India Company, formed to build up the spice trade, operated as a

colonial ruler in what's now Indonesia and beyond, a purview that included conducting

military operations against recalcitrant natives and competing colonial powers. Control

of the company was held tightly by its directors, with ordinary shareholders not having

much influence on management or even access to the company's accounting

statements.

However, shareholders were rewarded well for their investment. The company paid an

average dividend of over 16 percent per year from 1602 to 1650. Financial innovation in

Amsterdam took many forms. In 1609, investors led by one Isaac Le Maier formed

history's first bear syndicate, but their coordinated trading had only a modest impact in

driving down share prices, which tended to be robust throughout the 17th century. By

the 1620s, the company was expanding its securities issuance with the first use of

corporate bonds.

The Dutch West India Company was formed in 1621, bringing a new issuer to theburgeoning securities market. Amsterdam's growth as a financial center survived the

tulip mania of the 1630s, in which contracts for the delivery of flower bulbs soared wildly

and then crashed. New techniques and instruments proliferated for securities as well as

commodities, including options, repos and margin trading.[1]

Joseph de la Vega, also known as Joseph Penso de la Vega and by other variations of

his name, was an Amsterdam trader from a Spanish Jewish family and a prolific writer

as well as a successful businessman in 17th-century Amsterdam. His 1688 book

Confusion of Confusions explained the workings of the city's stock market. It was the

earliest book about stock trading, taking the form of a dialogue between a merchant, a

shareholder and a philosopher, the book described a market that was sophisticated but

also prone to excesses, and de la Vega offered advice to his readers on such topics as

the unpredictability of market shifts and the importance of patience in investment.
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The year that de la Vega published also brought an event that helped spread financial

techniques and talent from Amsterdam to London. This was the "glorious revolution," in

which Dutch rulerWilliam of Orange also ascended to England's throne. William sought

to modernize England's finances to pay for its wars, and thus the kingdom's first

government bonds were issued in 1693 and the Bank of England was set up the

following year. Soon thereafter, English joint-stock companies began going public.

London's first stockbrokers, however, were barred from the old commercial center

known as the Royal Exchange, reportedly because of their rude manners. Instead, the

new trade was conducted from coffee houses along Exchange Alley. By 1698, a broker

named John Casting, operating out of Jonathan's Coffee House, was posting regular

lists of stock and commodity prices. Those lists mark the beginning of the London Stock

Exchange.

One of history's greatest financial bubbles occurred in the next few decades. At the

center of it were the South Sea Company, set up in 1711 to conduct English trade with

South America, and the Mississippi Company, focused on commerce with France's

Louisiana colony and touted by transplanted Scottish financier John Law, who was

acting in effect as France's central banker. Investors snapped up shares in both, and

whatever else was available. In 1720, at the height of the mania, there was even an

offering of "a company for carrying out an undertaking of great advantage, but nobody

to know what it is."

By the end of that same year, share prices were collapsing, as it became clear that

expectations of imminent wealth from the Americas were overblown. In London,

Parliament passed the Bubble Act, which stated that only royally chartered companies

could issue public shares. In Paris, Law was stripped of office and fled the country.

Stock trading was more limited and subdued in subsequent decades. Yet the market

survived, and by the 1790s shares were being traded in the young United States.

On February 8, 1971, NASDAQ, the world's first electronic stock exchange, started its

operations.

The role of stock exchanges

Stock exchanges have multiple roles in the economy. This may include the following
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Raising capital for businesses

The Stock Exchange provide companies with the facility to raise capital for expansion

through selling shares to the investing public.[3]

Mobilizing savings for investment

When people draw their savings and invest in shares, it leads to a more rational

allocation of resources because funds, which could have been consumed, or kept in idle

deposits with banks, are mobilized and redirected to promote business activity with

benefits for several economic sectors such as agriculture, commerce and industry,

resulting in strongereconomic growth and higherproductivity levels of firms.

Facilitating company growth

Companies view acquisitions as an opportunity to expand product lines, increase

distribution channels, hedge against volatility, increase its market share, or acquire

other necessary business assets. A takeover bid or a merger agreement through the

stock market is one of the simplest and most common ways for a company to grow by

acquisition or fusion.

Profit sharingBoth casual and professional stock investors, through dividends and stock price

increases that may result in capital gains, share in the wealth of profitable businesses.

Corporate governance

By having a wide and varied scope of owners, companies generally tend to improve

management standards and efficiency to satisfy the demands of these shareholders,

and the more stringent rules for public corporations imposed by public stock exchanges

and the government. Consequently, it is alleged that public companies (companies that

are owned by shareholders who are members of the general public and trade shares on

public exchanges) tend to have better management records than privately held

companies (those companies where shares are not publicly traded, often owned by the
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Barometer of the economy

At the stock exchange, share prices rise and fall depending, largely, on market forces.

Share prices tend to rise or remain stable when companies and the economy in general

show signs of stability and growth. An economic recession, depression, or financial

crisis could eventually lead to a stock market crash. Therefore the movement of share

prices and in general of the stock indexes can be an indicator of the general trend in the

economy.

Major Stock Exchanges : Year ended 31 December 2010

Rank Economy Stock Exchange

Market

Capitalization

(USD Billions)

Trade Value

(USD Billions)

1 United States Europe

NYSE Euronext 15970 19813

2 United States

Europe

NASDAQ OMX 4931 13439

3Japan

Tokyo Stock Exchange 3827 3787
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4 United Kingdom London Stock Exchange 3613 2741

5China

Shanghai Stock Exchange 2717 4496

6Hong Kong

Hong Kong Stock

Exchange2711 1496

7 Canada Toronto Stock Exchange 2170 1368

8India

Bombay Stock Exchange 1631 258

9India

National Stock Exchange

of India1596 801

10Brazil

BM&F Bovespa 1545 868

11 AustraliaAustralian Securities

Exchange1454 1062

12 Germany Deutsche Brse 1429 1628

13China

Shenzhen Stock

Exchange1311 3572

14Switzerland

SIX Swiss Exchange 1229 788

15Spain

BME Spanish Exchanges 1171 1360

16South Korea

Korea Exchange 1091 1607

17Russia

MICEX 0949 408

18South Africa

JSE Limited 0925 340

A drastic slowing of the economy. The Americans, who are good at making precise

definitions, often apply the term to a situation where gross national or domestic product

has fallen in two consecutive quarters. A recession would be indicated by a slowing of a

nation's production, rising unemployment and falling interest rates, usually following a

decline in the demand for money. A popular distinction between recession and

depression is: 'Recession is when your neighbor loses his job; depression is when you

lose yours.'

In a 1975 New York Times article, economic statistician Julius Siskin suggested several

rules of thumb for defining a recession, one of which was "two down quarters of

GDP".In time, the other rules of thumb were forgotten. Some economists prefer a

definition of a 1.5% rise in unemployment within 12 months.
http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Shanghai_Stock_Exchangehttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Toronto_Stock_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/BM&F_Bovespahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Deutsche_B%C3%B6rsehttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Shenzhen_Stock_Exchangehttp://en.wikipedia.org/wiki/Shenzhen_Stock_Exchangehttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/SIX_Swiss_Exchangehttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Bolsas_y_Mercados_Espa%C3%B1oleshttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Korea_Exchangehttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/MICEXhttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/JSE_Limitedhttp://www.anz.com/edna/dictionary.asp?action=content&content=grosshttp://www.anz.com/edna/dictionary.asp?action=content&content=producthttp://www.anz.com/edna/dictionary.asp?action=content&content=interesthttp://www.anz.com/edna/dictionary.asp?action=content&content=moneyhttp://www.anz.com/edna/dictionary.asp?action=content&content=depressionhttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Shanghai_Stock_Exchangehttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Hong_Kong_Stock_Exchangehttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Toronto_Stock_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Brazilhttp://en.wikipedia.org/wiki/BM&F_Bovespahttp://en.wikipedia.org/wiki/Australiahttp://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/wiki/Australian_Securities_Exchangehttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/Deutsche_B%C3%B6rsehttp://en.wikipedia.org/wiki/People's_Republic_of_Chinahttp://en.wikipedia.org/wiki/Shenzhen_Stock_Exchangehttp://en.wikipedia.org/wiki/Shenzhen_Stock_Exchangehttp://en.wikipedia.org/wiki/Switzerlandhttp://en.wikipedia.org/wiki/SIX_Swiss_Exchangehttp://en.wikipedia.org/wiki/Spainhttp://en.wikipedia.org/wiki/Bolsas_y_Mercados_Espa%C3%B1oleshttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Korea_Exchangehttp://en.wikipedia.org/wiki/Russiahttp://en.wikipedia.org/wiki/MICEXhttp://en.wikipedia.org/wiki/South_Africahttp://en.wikipedia.org/wiki/JSE_Limitedhttp://www.anz.com/edna/dictionary.asp?action=content&content=grosshttp://www.anz.com/edna/dictionary.asp?action=content&content=producthttp://www.anz.com/edna/dictionary.asp?action=content&content=interesthttp://www.anz.com/edna/dictionary.asp?action=content&content=moneyhttp://www.anz.com/edna/dictionary.asp?action=content&content=depressionhttp://en.wikipedia.org/wiki/New_York_Times


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In the United States, the Business Cycle Dating Committee of the National Bureau of

Economic Research (NBER) is generally seen as the authority for dating US

recessions. The NBER defines an economic recession as: "a significant decline in the

economic activity spread across the country, lasting more than a few months, normally

visible in real GDP growth, real personal income, employment (non-farm payrolls),

industrial production, and wholesale-retail sales. Almost universally, academics,

economists, policy makers, and businesses defer to the determination by the NBER for

the precise dating of a recession's onset and end.

In economics, a recession is a business cycle contraction, a general slowdown in

economic activity. During recessions, many macroeconomic indicators vary in a similar

way. Production, as measured by Gross Domestic Product (GDP), employment,

investment spending, capacity utilization, household incomes, business profits and

inflation all fall during recessions; while bankruptcies and the unemployment rate rise.

Recessions generally occur when there is a widespread drop in spending often

following an adverse supply shock or the bursting of an economic bubble. Governments

usually respond to recessions by adopting expansionary macroeconomic policies, such

as increasing money supply, increasing government spending and decreasing taxation.

Attributes

A recession has many attributes that can occur simultaneously and includes declines in

component measures of economic activity (GDP) such as consumption, investment,

government spending, and net export activity. These summary measures reflect

underlying drivers such as employment levels and skills, household savings rates,

corporate investment decisions, interest rates, demographics, and government policies.

Economist Richard C. Koo wrote that under ideal conditions, a country's economy

should have the household sector as net savers and the corporate sector as net

borrowers, with the government budget nearly balanced and net exports near zero.

When these relationships become imbalanced, recession can develop within the
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country or create pressure for recession in another country. Policy responses are often

designed to drive the economy back towards this ideal state of balance.

A severe (GDP down by 10%) or prolonged (three or four years) recession is referred to

as an economic depression, although some argue that their causes and cures can bedifferent. As an informal shorthand, economists sometimes refer to different recession

shapes, such as V-shaped, U-shaped, L-shaped and W-shaped recessions

RECISSION

The economy goes through different cycles. One of them is recession. It is observed

when the prices start to increase, the living standard starts to fall, unemployment rises,

and businesses stop expanding.

Another indicator of recession is a decreasing gross national product (GDP) of a nation.

In fact, many experts consider that there is an economic recession only when a

negative GDP growth has been observed over two consecutive quarters.

However, it is generally considered that a recession starts when there have been

several quarters of slowing even if they have been positive.

Definition of Recession

Economic recession is defined as a significant decline in the economic activity across a

country, lasting longer than a few months. Normally, the recession is visible in real GDP

growth, industrial production, wholesale-retail trade, real personal income, and

employment.

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http://en.wikipedia.org/wiki/Depression_(economics)http://en.wikipedia.org/wiki/Recession_shapeshttp://en.wikipedia.org/wiki/Recession_shapeshttp://en.wikipedia.org/wiki/V-shaped_recessionhttp://en.wikipedia.org/wiki/U-shaped_recessionhttp://en.wikipedia.org/wiki/L-shaped_recessionhttp://en.wikipedia.org/wiki/W-shaped_recessionhttp://www.anrdoezrs.net/click-2847037-10459900http://www.anrdoezrs.net/click-2847037-10459900http://www.anrdoezrs.net/click-2847037-10459900http://en.wikipedia.org/wiki/Depression_(economics)http://en.wikipedia.org/wiki/Recession_shapeshttp://en.wikipedia.org/wiki/Recession_shapeshttp://en.wikipedia.org/wiki/V-shaped_recessionhttp://en.wikipedia.org/wiki/U-shaped_recessionhttp://en.wikipedia.org/wiki/L-shaped_recessionhttp://en.wikipedia.org/wiki/W-shaped_recessionhttp://www.anrdoezrs.net/click-2847037-10459900http://www.anrdoezrs.net/click-2847037-10459900http://www.anrdoezrs.net/click-2847037-10459900


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Impact recession of stock market

Some recessions have been anticipated by stock market declines. In Stocks for the

Long Run, Siegel mentions that since 1948, ten recessions were preceded by a stock

market decline, by a lead time of 0 to 13 months (average 5.7 months), while ten stock

market declines of greater than 10% in the DJIA were not followed by a recession.

The real-estate market also usually weakens before a recession. However real-estate

declines can last much longer than recessions.

Since the business cycle is very hard to predict, Siegel argues that it is not possible to

take advantage of economic cycles for timing investments. Even the National Bureau of

Economic Research (NBER) takes a few months to determine if a peak or trough has

occurred in the US.

During an economic decline, high yield stocks such as fast moving consumer goods,

pharmaceuticals, and tobacco tend to hold up better. However when the economy starts

to recover and the bottom of the market has passed (sometimes identified on charts as

a MACDgrowth stocks tend to recover faster. There is significant disagreement about

how health care and utilities tend to recover. Diversifying one's portfolio into

international stocks may provide some safety; however, economies that are closely

correlated with that of the U.S. may also be affected by a recession in the U.S.

There is a view termed the halfway rule according to which investors start discounting

an economic recovery about halfway through a recession. In the 16 U.S. recessions

since 1919, the average length has been 13 months, although the recent recessions

have been shorter. Thus if the 2008 recession followed the average, the downturn in the

stock market would have bottomed around November 2008. The actual US stock

market bottom of the 2008 recession was in March 2009.
http://www.jdoqocy.com/click-2847037-10686002http://www.jdoqocy.com/click-2847037-10686002http://en.wikipedia.org/wiki/Stocks_for_the_Long_Runhttp://en.wikipedia.org/wiki/Stocks_for_the_Long_Runhttp://en.wikipedia.org/wiki/DJIAhttp://en.wikipedia.org/wiki/Real-estatehttp://en.wikipedia.org/wiki/Real-estatehttp://en.wikipedia.org/wiki/National_Bureau_of_Economic_Researchhttp://en.wikipedia.org/wiki/National_Bureau_of_Economic_Researchhttp://en.wikipedia.org/wiki/High_yield_stockshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/MACDhttp://en.wikipedia.org/wiki/Growth_stockhttp://www.jdoqocy.com/click-2847037-10686002http://www.jdoqocy.com/click-2847037-10686002http://en.wikipedia.org/wiki/Stocks_for_the_Long_Runhttp://en.wikipedia.org/wiki/Stocks_for_the_Long_Runhttp://en.wikipedia.org/wiki/DJIAhttp://en.wikipedia.org/wiki/Real-estatehttp://en.wikipedia.org/wiki/Real-estatehttp://en.wikipedia.org/wiki/National_Bureau_of_Economic_Researchhttp://en.wikipedia.org/wiki/National_Bureau_of_Economic_Researchhttp://en.wikipedia.org/wiki/High_yield_stockshttp://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/MACDhttp://en.wikipedia.org/wiki/Growth_stock


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Impact of recession on Asian countries The Asian economies have come out

stronger than the western countries in the face revival period witnessed over last one

year after witnessing a huge impact of global recession. The global recession has

ensured an actual shift in over-all economic power from western region to the emerging

eastward economies. No doubt that the Asian countries always had an added

advantage over their western counterparts, over the last few years, in terms of their fast

growing and developing economies. But it was none other than the big crisis witnessed

across the globe which heralded an absolute shift in momentum and economic clout in

favor of emerging economies from the US and Western Europe.

The scenario that has emerged post-crisis is a peculiarly shift in the flow of excessive

liquidity from current account surplus economies (like China) to make good the massive

deficits in current accounts of hard hit recession economies from western economies

(like the US). China is the worlds biggest holder of forex reserves to the tune of

whooping $2.4 trillion. This all while the US is struggling with the ballooning current

account deficit on the back of massive stimulus measures announced during the global

recession. China over took Germany to become the worlds biggest exporter. China is

all set to overtake US to become the worlds largest economy by 2025 and then India

few years later !

According to an article on The Economist, the economic clout of Asia has risensignificantly after witnessing the global recession. The article further highlights its

view on following aspects:

The worlds economic gravity is moving towards eastward.

China looks good to become worlds biggest economy by next decade.

Asia comes out as an important destination for bankers and businessmen.

In Asia, the Chinas growth in share of output is offset by the decline in Japan.

Asian central banks hold two-thirds of all foreign-exchange reserves.

The bulk of private-sector wealth still lies in the West.

Asian currencies still make up only 3% of total foreign exchange reserves.
http://trak.in/tags/business/2009/06/24/power-shifting-from-west-to-east/http://trak.in/tags/business/2009/06/24/power-shifting-from-west-to-east/http://trak.in/Tags/Business/recession/http://www.economist.com/business-finance/displaystory.cfm?story_id=15579727http://trak.in/tags/business/2009/06/24/power-shifting-from-west-to-east/http://trak.in/tags/business/2009/06/24/power-shifting-from-west-to-east/http://trak.in/Tags/Business/recession/http://www.economist.com/business-finance/displaystory.cfm?story_id=15579727


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GDP figures converted at market exchange rates understate Asia real expansion.

In PPP terms, 3 of the worlds 4 biggest economies (China, Japan & India) are Asian.

Western firms are more interested in Asias capital spending than its consumption.

The ailing western economies got further deteriorated by the impact of the great

recession. However, even Asian economies were not immune to this global crisis and

suffered a period of sharp slowdown.

But, what could have played out well for the Asia is that this crisis ensured dwarfing the

size of selected western economies like US and Western Europe and at the same time

a stunning and quicker recovery in the Asian emerging economies from the face of

global impact.

In effect, this could have resulted in diminishing economic clout for major developed

economies as compared to pre-crisis years, as against higher role of emerging

economies with sustained growth and momentum coming out from the financial crisis. It

is like the economic base of developed countries has narrowed in favor of broadened

and sustainable Asian demographics.

Take, for instance, a closer look at the monetary policy of the Indian Central banks way

of dealing with the crises provides enough signs about the implementation of strict

norms and standards.

The RBI lowered the interest rates during the global slowdown in order to give impetus

to the economy in form of increased spending by the public on lower base of interest

rate regime. At the same time, RBI also ensured tightening of credit in the more

speculation-oriented industries like Real Estate.

The real-estate sector which was sustaining higher property prices even during the

recession, over and above the existence of over-supply dynamics, led the RBI to tighten

the flow of speculative money in this premium secured.

Various stock exchanges
http://trak.in/tags/business/2007/05/28/indian-purchasing-power-parity-to-overtake-japan-by-2025-2/http://trak.in/tags/business/2007/05/28/indian-purchasing-power-parity-to-overtake-japan-by-2025-2/


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"Russian Trading System" Stock Exchange

Established in 1995, as the first regulated stock market in Russia, RTS Stock Exchange

now trades the full range of financial instruments from cash equities to commodity

futures.

The RTS Index first calculated on September 1, 1995, has since become the main

benchmark for the Russian securities industry and is based on the Exchanges 50 most

liquid and capitalized shares.

Todays RTS product line includes:

RTS Standard, a new front-rank equity market for the most liquid Russian

securities characterized by absence of 100% asset depositing, standard T+4

settlement in roubles, use of CCP technology, consolidated cash position on RTSStandard and on FORTS, RTS derivatives section and portfolio-style approach to

margining spot and derivatives markets positions.

RTS Classica, the only trading platform in Russia that allows for settlement in

both rubles and foreign currency. RTS Classica is equally accessible to both

Russian and foreign investors. The standard settlement cycle is T+4 DVP. There

are no requirements to deposit securities and cash before a trade. Over 500

securities are trading on this market.

RTS T+0 Market, securities trading for retail investors with full preliminary

deposit of assets and ruble settlement.

RTS Board, the quote-driven market for unlisted stocks and bonds.

FORTS, futures and options market with ruble settlement. Trading since 2001.

Today, 47 contracts are offered (34 futures and 13 options) on shares of Russian

companies, bonds, short term interest rates, currency, RTS Indices, oil, oil

products, metals and sugar. The most active contract is futures on the RTS

Index.

RTS Group operates the central counterparty, the settlement securities depository and

the settlement house for rubles and foreign currencies.

International members of RTS include Deutsche Bank, CSFB, UBS, Morgan Stanley

etc.


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Both the RTS Stock Market and the FORTS market are traded on robust international

standard electronic platforms which allow for direct market access and algorithmic

trading.

The core of the RTS Group is Open Joint Stock Company RTS where the trading is

facilitated. The key shareholders include global investment banks, like UBS, Credit

Suisse, Deutsche Bank.

Sao Paulo Stock Exchange

Founded on August 23, 1890 by Emilio Rangel Pestana, the "Bolsa de Valores de So

Paulo" (Sao Paulo Stock Exchange, in English) has had a long history of services

provided to the stock market and the Brazilian economy. Until the mid-1960s, Bovespaand the other Brazilian stock markets were state-owned companies, tied with the

Secretary of Finances of the states they belonged to, and brokers were appointed by

the government.

After the reforms of the national financial system and the stock market implemented in

1965/1966, Brazilian stock markets assumed a more institutional role. In 2007, the

Exchange demutualized and become a for-profit company.

Through self-regulation, Bovespa operates under the supervision of the Comissao deValores Mobiliarios (CVM), analogous to the American SEC. Since the 1960s, it has

constantly evolved with the help oftechnology such as the introduction of computer-

based systems, mobile phones and the internet. In 1972, Bovespa was the first

Brazilian stock market to implement an automated system for the dissemination of

information online and in real-time, through an ample network of computer terminals.

At the end of the 1970s, Bovespa also introduced a telephone trading system in Brazil;

the "Sistema Privado de Operacoes por Telefone" or "SPOT" (Private System of

Telephone Trading, in English). At the same time, Bovespa developed a system of

fungible safekeeping and online services for brokerage firms.

In 1990, the negotiations through the Sistema de Negociaao Electrnica - CATS

(Computer Assisted Trading System) was simultaneously operated with the traditional
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20/48

system of "Pregao Viva Voz" (open outcry). Currently, BM&FBOVESPA is a fully

electronic exchange.

In 1997, a new system of electronic trading, known as the Mega Bolsa, was

implemented successfully. The Mega Bolsa extends the potential volume of processing

of information and allows the Exchange to increase its overall volume of activities.

With the goal to increase popular access to the stock markets, Bovespa introduced in

1999 the "Home Broker", an internet-based trading systems that allows individual

investors to trade stocks. The system enables users to execute buy and sell orders

online.

In 2000, Bovespa created three new listing segments, the Novo Mercado (New Market),

Level 2 and Level 1 of Corporate Governance Standards, allowing companies to accede

voluntarily to more demanding disclosure, governance and compliance obligations. The

new listing segments mostly languished until 2004, when a growing number of newly

public companies began to list on the Novo Mercado and other segments as part of a

capital-raising effort. From 2004 to 2010, the vast majority of new listings on the

Bovespa were made by Novo Mercado, Level 2 and Level 1 companies. The Novo

Mercado, Level 2 and Level 1 segments are based on a contractual agreement of the

listed company, its controlling shareholder, and its management to comply with

specified regulations. In addition, listed companies must submit to arbitration as amethod of resolving disputes. The set of protections entailed by a Novo Mercado listing

is apparently deemed by market participants to increase the attractiveness of

companies. The stock market index of Novo Mercado listed companies (the IGC) has

consistently outperformed the broader Ibovespa index since its launch.

The recent success of the Brazilian equity capital markets is attributed to a significant

extent to the credibility engendered by the Novo Mercado regulations. In 2007, only the

United States and China equity markets had a greater number of initial public offerings.The availabiltity of a "market exit" has also encouraged the development of a private

equity industry, a growing Brazilian investment banking market and a thriving asset

management industry. Another side benefit of a thriving equity market has been access

to equity financing for the international expansion of Brazilian business. Brazilian

multinational companies have used the proceeds of equity offerings to fund a growing
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number of international acquisitions. Vale, Embraer, Gerdau, Brazil Foods, Marfrig

Alimentos and JBS have acquired businesses outside Brazil using the proceeds from

equity offerings. Attractive valuations of Brazilian subsidiaries have led international

companies to list their Brazilian subsidiaries, as was the case of Banco Santander

Brasil.

On May 8, 2008, Bovespa Holding announced the merger of the So Paulo Stock

Exchange (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F),

creating the world's third largest stock exchange.

As a result of an early 2008 stock swap, Chicago's CME Group owns an 5% stake in

BM&FBovespa, and in turn, BM&FBovespa owns a 5% stake in CME Group. The

agreement has also created an order routing trading system between both exchanges.

HOURS

The exchange has a pre-market session from 09:45am to 10:00am, a normal trading

session from 10:00am to 5:00pm and a post-market session from 5:30pm to 7:00pm

weekdays and holidays declared by the Exchange in advance.

National stock exchange(NSE)

The National Stock Exchange (NSE) ( Rashtriya hare Bzar) is a stock

exchange located at Mumbai, India. It is the 9th 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$1.59 trillion and over 1,552 listings as of December 2010. Though a number

of other exchanges exist, NSE and the Bombay Stock Exchange are the two most

significant stock exchanges in India, and between them are responsible for the vast

majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the

NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by

market capitalization.

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. There are at least 2 foreign investors NYSE
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Euro next and Goldman Sachs who have taken a stake in the NSE. As of 2006, the

NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. NSE is

the third largest Stock Exchange in the world in terms of the number of trades in

equities. It is the second fastest growing stock exchange in the world with a recorded

growth of 16.6%.

Origins

The National Stock Exchange of India was promoted by leading Financial institutions at

the behest of the Government, and was incorporated in November 1992 as a tax-paying

company. In April 1993, it was recognized as a stock exchange under the Securities

Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt

Market (WDM) segment in June 1994. The Capital market (Equities) segment of the

NSE commenced operations in November 1994, while operations in

the Derivatives segment commenced in June 2000

Innovations NSE has remained in the forefront of modernization of India's capital and

financial markets, and its pioneering efforts include:

Being the first national, anonymous, electronic limit order book (LOB) exchange to

trade securities in India. Since the success of the NSE, existent market and new

market structures have followed the "NSE" model.

Setting up the first clearing corporation "National Securities Clearing Corporation

Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity

market (and later, derivatives market) trades in India.

Co-promoting and setting up of National Securities Depository Limited, first

depository in India [9]

Setting up ofS&P CNX Nifty.

NSE pioneered commencement of Internet Trading in February 2000, which led tothe wide popularization of the NSE in the broker community.

Being the first exchange that, in 1996, proposed exchange traded derivatives,

particularly on an equity index, in India. After four years of policy and regulatory

debate and formulation, the NSE was permitted to start trading equity derivatives
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Being the first and the only exchange to trade GOLD ETFs (exchange traded funds)

in India.

NSE has also launched the NSE-CNBC-TV18 media centre in association

with CNBC-TV18.

NSE.IT Limited, setup in 1999 , is a 100% subsidiary of the National Stock

Exchange of India. A Vertical Specialist Enterprise, NSE.IT offers end-to-end

Information Technology (IT) products, solutions and services

Markets

Currently, NSE has the following major segments of the capital market:

Equity

Futures and Options

Retail Debt Market

Wholesale Debt Market

Currency futures

MUTUAL FUND

STOCKS LENDING & BORROWING

August 2008 Currency derivatives were introduced in India with the launch of Currency

Futures in USD INR by NSE. Currently it has also launched currency futures in EURO,

POUND & YEN. Interest Rate Futures was introduced for the first time in India by NSE

on 31 August 2009, exactly after one year of the launch of Currency Futures.

NSE became the first stock exchange to get approval for Interest rate futures as

recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on

7% 10 Year GOI bond (NOTIONAL) was launched with quarterly maturities.

Hours

NSE's normal trading sessions are conducted from 9:15 am India Time to 3:30 pm India

Time on all days of the week except Saturdays, Sundays and Official Holidays declared
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by the Exchange (or by the Government of India) in advance.The exchange, in

association with BSE (Bombay Stock Exchange Ltd.), is thinking of revising its timings

from 9.00 am India Time to 5.00 pm India Time.

There were System Testing going on and opinions, suggestions or feedback on the

New Proposed Timings are being invited from the brokers across India. And finally on

18 November 2009 regulator decided to drop their ambitious goal of longest Asia

Trading Hours due to strong opposition from its members.

On 16 December 2009, NSE announced that it would advance the market opening to

9:00 am from 18 December 2009. So NSE trading hours will be from 9.00 am till 3:30

pm India Time.

However, on 17 December 2009, after strong protests from brokers, the Exchange

decided to postpone the change in trading hours till 4 Jan 2010.

NSE new market timing from 4 Jan 2010 is 9:00 am till 3:30 pm India Time.

Shanghai Stock exchange

History

The Shanghai Stock Exchange (SSE) (simplified Chinese: traditional

Chinese: pinyin: Shnghi Zhngqun Jioysu), abbreviated as is a stock

exchange that is based in the city ofShanghai, China. It is one of the two stock

exchanges operating independently in the People's Republic of China, the other is

the Shenzhen Stock Exchange. Shanghai Stock Exchange is the world's 5th largest

stock market by market capitalization at US$2.7 trillion as of Dec 2010.[1]Unlike the

Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to

foreign investors [2] due to tight capital account controls exercised by the Chinese

mainland authorities.[3]

The current exchange was re-established on November 26, 1990 and was in operation

on December 19 of the same year. It is a non-profit organization directly administered

by the China Securities Regulatory Commission (CSRC).
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The formation of the International Settlement (foreign concession areas)

in Shanghai was the result of the Treaty of Nanking of 1842 (which ended theFirst

Opium War) and subsequent agreements between the Chinese and foreign

governments were crucial to the development of foreign trade in Chinaand of the foreign

community in Shanghai. The market forsecurities trading in Shanghai begins in the late

1860s. The first shares list appeared in June 1866 and by then Shanghai's International

Settlement had developed the conditions conducive to the emergence of a share

market: several banks, a legal framework forjoint-stock companies, and an interest in

diversification among the established trading houses (although the trading houses

themselves remained partnerships).

In 1891 during the boom in mining shares, foreign businessmen founded the "Shanghai

Sharebrokers' Association" headquartered in Shanghai as China's first stock exchange.In 1904 the Association applied for registration in Hong Kong under the provision of the

Companies ordinance and was renamed as the "Shanghai Stock Exchange". The

supply of securities came primarily from local companies. In the early days, banks

dominated private shares but, by 1880, only the Hong Kong and Shanghai local banks

remained.

Later in 1920 and 1921, "Shanghai Securities & Commodities Exchange" and

"Shanghai Chinese Merchant Exchange" started operation respectively. Anamalgamation eventually took place in 1929, and the combined markets operated

thereafter as the "Shanghai Stock Exchange". Shipping, insurance, and docks persisted

to 1940 but were overshadowed by industrial shares after the Treaty of Shimonoseki of

1895, which permitted Japan, and by extension other nations which had treaties with

China, to establish factories in Shanghai and other treaty ports. Rubber plantations

became the staple of stock trading beginning in the second decade of the 20th century.

By the 1930s, Shanghai had emerged as the financial center of the Far East, where

both Chinese and foreign investors could trade stocks, debentures, government bonds,

and futures. The operation of Shanghai Stock Exchange came to an abrupt halt

afterJapanese troops occupied the Shanghai International Settlement on December 8,

1941. In 1946, Shanghai Stock Exchange resumed its operations before closing again 3

years later in 1949, after the Communist revolution took place.
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After the Cultural Revolution ended and Deng Xiaoping rose to power, China was re-

opened to the outside world in 1978. During the 1980s, China's securities market

evolved in tandem with the country's economic reform and opening up and the

development of socialist market economy. On 26 November 1990, Shanghai Stock

Exchange was re-established and operations began a few weeks later on 19 December.

Hours

The SSE is open for trading every Monday to Friday. The morning session begins with

centralized competitive pricing from 09:15 to 09:25, and continues with consecutive

bidding from 09:30 to 11:30. This is followed by the afternoon consecutive bidding

session, which starts from 13:00 to 15:00. The market is closed on Saturday and

Sunday and other holidays announced by the SSE.

New York stock exchange

he origin of the NYSE can be traced to May 17, 1792, when the Buttonwood

Agreement was signed by 24 stock brokers outside of 68 Wall Street in New York under

a buttonwood tree on Wall Street. On March 8, 1817, the organization drafted a

constitution and renamed itself the "New York Stock & Exchange Board." Anthony

Stockholmwas elected the Exchange's first president.

The first central location of the Exchange was a room, rented in 1792 for $200 a month,

located at 40 Wall Street. After that location was destroyed in the Great Fire of New

York in 1835, the Exchange moved to a temporary headquarters. In 1863, the New York

Stock & Exchange Board changed to its current name, the New York Stock Exchange.

In 1865, the Exchange moved to 10-12 Broad Street.

The New York Stock Exchange was closed for ten days starting September 20, 1873,

because of the Panic of 1873.[8]

In 1873, George W. Ely, became Secretary of the New York Stock Exchange and

eliminated the two assistant secretary positions. He was Secretary from 18731899 and

retired until 1905 and remained until 1919 closing out World War I. Ely closed the

exchange for the longest period in its history during 1914 on the outbreak of World War

I. It was Ely who suspended and removed all corrupt members. During the Civil War,
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George W. Ely enlisted in the New York Seventh Regiment and became its youngest

Captain ever. This was the first regiment enlisted into the Civil War by Abraham Lincoln.

Source book: The Life and Papers of Captain George W. Ely, by great grandson and

grandsons of Ely: Bruce Campbell Adamson, editor George W. Ely, III, and editor

William Dodds Hawkins.

The volume of stocks traded increased sixfold in the years between 1896 and 1901, and

a larger space was required to conduct business in the expanding marketplace. [9] Eight

New York City architects were invited to participate in a design competition for a new

building; ultimately, the Exchange selected the neoclassic design submitted by

architect George B. Post. Demolition of the Exchange building at 10 Broad Street, and

adjacent buildings, started on May 10, 1901.

The new building, located at 18 Broad Street, cost $4 million and opened on April 22,

1903. The trading floor, at 109 140 feet (33 42.5 m), was one of the largest volumes

of space in the city at the time, and had a skylight set into a 72-foot (22 m)-high ceiling.

The main faade of the building features six tall Corinthian capitals, topped by a marble

pediment containing high-relief sculptures by John Quincy Adams Ward with the

collaboration ofPaul Wayland Bartlett, carved by the Piccirilli Brothers,

representing Integrity Protecting the Works of Man. The building was listed as

a National Historic Landmark and added to the National Register of Historic Places onJune 2, 1978.[10]

In 1922, a building for offices, designed by Trowbridge & Livingston, was added at 11

Wall Street, as well as a new trading floor called the Garage. Additional trading floor

space was added in 1969 the Blue Room, and in 1988 the EBR or Extended Blue

Room, with the latest technology for information display and communication. Yet

another trading floor was opened at 30 Broad Street called the Bond Room in 2000. As

the NYSE introduced its hybrid market, a greater proportion of trading came to be

executed electronically, and due to the resulting reduction in demand for trading floor

space, the NYSE decided to close the 30 Broad Street trading room in early 2006. As

the adoption of electronic trading continued to reduce the number of traders and

employees on the floor, in late 2007, the NYSE closed the rooms created by the 1969

and 1988 expansions.
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The Stock Exchange Luncheon Club was situated on the seventh floor from 1898 until

its closure in 2006.[11

he NYSE announced its plans to merge with Archipelago on April 21, 2005, in a deal

intended to reorganize the NYSE as a publicly traded company. NYSE's governing

board voted to merge with rival Archipelago on December 6, 2005, and become a for-

profit, public company. It began trading under the name NYSE Group on March 8, 2006.

A little over one year later, on April 4, 2007, the NYSE Group completed its merger with

Euronext, the European combined stock market, thus forming the NYSE Euronext, the

first transatlantic stock exchange.

Presently, Marsh Carter is Chairman of the New York Stock Exchange, having

succeeded John S. Reed and the CEO is Duncan Niederauer, having succeeded John

Thain

Trading

The New York Stock Exchange (sometimes referred to as "the Big Board") provides a

means for buyers and sellers to tradeshares ofstock in companies registered for public

trading. The NYSE is open for trading Monday through Friday between 9:30am

4:00pm ET, with the exception of holidays declared by the Exchange in advance.

On the trading floor, the NYSE trades in a continuous auction format, where traders can

execute stock transactions on behalf of investors. They will gather around the

appropriate post where a specialist broker, who is employed by an NYSE member firm

(that is, he/she is not an employee of the New York Stock Exchange), acts as an

auctioneer in an open outcry auction market environment to bring buyers and sellers

together and to manage the actual auction. They do on occasion (approximately 10% of

the time) facilitate the trades by committing their own capital and as a matter of course

disseminate information to the crowd that helps to bring buyers and sellers together.

The auction process moved toward automation in 1995 through the use of wirelesshand held computers (HHC). The system enabled traders to receive and execute orders

electronically via wireless transmission. On September 25, 1995, NYSE member

Michael Einersen, who designed and developed this system, executed 1000 shares of

IBM through this HHC ending a 203 year process of paper transactions and ushering in

an era of automated trading.
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As of January 24, 2007, all NYSE stocks can be traded via its electronic Hybrid

Market (except for a small group of very high-priced stocks). Customers can now send

orders for immediate electronic execution, or route orders to the floor for trade in the

auction market. In the first three months of 2007, in excess of 82% of all order volume

was delivered to the floor electronically.

The right to directly trade shares on the exchange is conferred upon owners of the 1366

"seats". The term comes from the fact that up until the 1870s NYSE members sat in

chairs to trade. In 1868, the number of seats was fixed at 533, and this number was

increased several times over the years. In 1953, the exchange stopped at 1366 seats.

These seats are a sought-after commodity as they confer the ability to directly trade

stock on the NYSE. Seat prices have varied widely over the years, generally falling

during recessions and rising during economic expansions. The most expensive inflation-adjusted seat was sold in 1929 for $625,000, which, today, would be over six million

dollars. In recent times, seats have sold for as high as $4 million in the late 1990s and

$1 million in 2001. In 2005, seat prices shot up to $3.25 million as the exchange was set

to merge with Archipelago and become a for-profit, publicly traded company. Seat

owners received $500,000 cash per seat and 77,000 shares of the newly formed

corporation. The NYSE now sells one-year licenses to trade directly on the exchange.

In 1792, The NYSE acquires its first traded securities. In 1817, The constitution of theNew York Stock and Exchange Board is adopted In 1867, The First Stock Ticker. In

1896, Dow Jones Industrial Average first published in The Wall Street Journal. In 1903,

NYSE moves into new quarters at 18Broad Street. In 1906, Dow exceeds 100 on

January 12. In 1907, Panic of 1907. In 1914, World War I causes the longest exchange

shutdown: four months, two weeks; re-opening December 12 brings the largest one-day

percentage drop in the DJIA (24.4%). In 1915, Market price is given in dollars. In 1929,

Central quote system established; Black Thursday, October 24 and Black Tuesday,

October 29 signal the end of the Roaring Twenties bull market. In 1943, Trading floor is

opened to women. In 1949, Longest (eight-year) bull market begins.

In 1954, Dow surpasses its 1929 peak in inflation-adjusted dollars. In 1956, Dow closes

above 500 for the first time on March 12. In 1966, the NYSE begins a composite index

of all listed common stocks. This is referred to as the "Common Stock Index" and is
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transmitted daily. The starting point of the index is 50. It is later renamed the NYSE

Composite Index. In 1967, Protesters led by Abbie Hoffman throw mostly fake dollar

bills at traders from gallery, leading to the installation of bullet-proof glass. In

1970, Securities Investor Protection Corporation established. In 1971, NYSE recognized

as Not-for-Profit organization. In 1972, Dow closes above 1,000 for the first time on

November 14. In 1977, foreign brokers are admitted to NYSE. In 1980, Exchange

established. In 1982, longest bull market in DJIA history begins. In 1987, Black Monday,

October 19, sees the second-largest one-day DJIA percentage drop (22.6%) in history.

In 1991, Dow exceeds 3,000. In 1995, Dow exceeds 5,000. In 1996, Real-time ticker

introduced. In 1999, Dow exceeds 10,000 on March 29. In 2000, Dow peaks at

11,722.98 on January 14; first NYSE global index is launched under the ticker NYIID.

In 2001, Trading in fractions (n/16) ends, replaced by decimals (increments of $.01,see Decimalization);September 11, 2001 attacks occur, closing NYSE for 4 sessions. In

2003, NYSE Composite Index re launched and value set equal to 5,000 points. In 2006,

NYSE and Arcade merge, creating NYSE Arca and forming the publicly owned, for-

profit NYSE Group, Inc.; in turn, NYSE Group merges with Euro next, creating the first

trans-Atlantic stock exchange group; DJIA tops 12,000 on October 19. In 2007, US

President George W. Bush shows up unannounced to the Floor about an hour and a

half before a Federal Open Market Committee interest-rate decision on January

31. NYSE announces its merger with the American Stock Exchange; NYSE Composite

closes above 10,000 on June 1; DJIA exceeds 14,000 on July 19 and closes at an all

time peak of 14,164.53 on October 9. This was the peak before the 20082009 busts.

In 2008, On September 15, the DJIA loses more than 500

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