SIMMY MADAME

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STOCK EXCHANGES



WHAT IS STOCK EXCHANGE?

� An entity that provides services for stock brokers and traders to tradestocks, bonds, and other securities.

� Also provide facilities for issue andredemption of securities and other

financial instruments, and capitalevents including the payment of income and dividends.



OVERLOOK



INTRODUCTION

� There are 23 stock exchanges in theIndia.

� Mumbai's BSE is the largest.

� Established in 1875, the exchange isalso the oldest in Asia. Among the 22

Stock Exchanges recognized by theGOI under the Securities Contracts(Regulation) Act, 1956.



STOCK EXCHANGES IN INDIA1. National Stock Exchange2. Bombay Stock Exchange3. Ahmedabad Stock Exchange

4. Bangalore Stock Exchange5. Bhubaneshwar Stock Exchange6. Calcutta Stock Exchange7. Cochin Stock Exchange8. Coimbatore Stock Exchange9. Delhi Stock Exchange10.Guwahati Stock Exchange11.Hyderabad Stock Exchange12.Vadodara Stock Exchange

13.Jaipur Stock Exchange14.Ludhiana Stock Exchange15.Madhya Pradesh Stock Exchange

16.Madras Stock Exchange17.Magadh Stock Exchange18.Mangalore Stock Exchange19.Meerut Stock Exchange20.OTC Exchange Of India21.Pune Stock Exchange

22.Saurashtra Kutch Stock Exchange23.Uttar Pradesh Stock Exchange



� Has the largest number of listed companies inthe world (5,034 & over 7700 scrips).

� Market cap. of $1.65 trillion 8th in the world.

� The BSE SENSEX (SENS

itive indEX

), alsocalled the "BSE 30", is a widely used marketindex in India and Asia.

� It traces its history to the 1850s, when 4 Gujarati

and 1 Parsi stockbroker would gather under banyan trees in front of Mumbai's Town Hall.



Companies in the Sensex





SINGLE DAY RECORDS

� Down

January 21, 2008--1,408.35 points

Oct 24, 2008--1070.63 pointsMarch 17, 2008 -- 951.03 points

� Up

May 18, 2009 --2110.79 points







�Founded in 1992, located in Mumbai.�9th largest stock exchange in the world by market

capitalization�Largest in India by daily turnover and number of trades.�NSE has a market capitalization of around

US$1.59 trillion�1,552 listings as of December 2010.�The NSE's key index is the S&P CNX Nifty



NSE GROUP

1. India Index Services & Products Ltd. (IISL)

2. National Securities Clearing Corporation Ltd.(NSCCL)3. NSE.IT Ltd.4. National Securities Depository Ltd. (NSDL)

5. DotEx International LimitedNSE is a tax-paying company unlike other stockexchanges in the country



SPECULATION

The buying , holding, selling , short-term selling of

stocks, bonds, commodities, currencies , collectibles or any valuable financial instrument to profit fromfluctuations in its price as opposed to buying it for use or for income via method like dividends or interest.



Kinds of speculation

� Bull Market (Tejiwala): purchase the shares at currentprices to sell at a higher price in the near future Alsocalled a long buyer.

� Bear Market (Mandiwala) : sells security in the hope thatwill be able to buy them back at lesser price. also called³short selling´.



� Lame duck : When a bear has made contracts to sellsecurities, find it difficult to meet his commitment due tonon-availability of security, they always struggling..

� Stag : type of speculator who applies for a large number of a shares in a new issue with the intention of sellingthem at a premium. He is bullish and very cautious.



BENEFITS OF STOCK EXCHANGE

POINT OF VIEW OF COMMUNITY:

� Assist the economis development by providing a body of interested investors.

� Uploads the position of superior enterprises and assistthem in raising further funds.

� Encourages capital formation

� Government can undertake projects of nationalimportance and social value raising funds through the

sale of its securities on the stock exchange.� It is the stock exchanges in which central bank of a

country can control credit by undertaking open marketoperations (purchase and sale of securities)



COMPANY POINT OF VIEW

� A company whose shares quoted on stockexchange they enjoy better reputation andcredit.

� The market for the shares of such a company isnaturally widened.

� Raises the bargaining power of the company inthe event of a takeover, merger or amalgamation.



INVESTORS POINT OF VIEW

� Liquidity of the investment is increased

� The securities dealt on a stock exchange are goodcollateral security for loans.

� The stock exchange safeguards interests of investorsthrough strict enforcement of rules and regulations.

� The present net worth of investments can be easilyknown by the daily quotations.

� Risk is considerably less when he holds or purchaseslisted securities.



ROLE PLAYER

� EXTERNAL

1.SHAREHOLDER2.DEBENTURE HOLDER

Warren Buffet



SHAREHOLDER

� Preference shareholder

Cumulative

Non cumulative

Participating

Redeemable

� Equity shareholder



DEBENTURES� A document under the company seal which

provides for the payment of a principal sum and

interest there on at regular intervals which isusually secured by a fixed or floating charge onthe company¶s property or undertaking whichacknowledges a loan to the company.



INTERNAL PLAYERS

� Broker: a commission agent who transactsbusiness in securities on behalf of non-members.They may have number of sub-

brokers to canvass and secure business for them.

� Jobber: an independent dealer securities.Purchase and sells securities in his ownname,not allowed to deal with non-membersdirectly, works for profit.



� Non-members : The following categories of nonmembers are also permitted to enter trading halland transact business on the behalf of members.

� Authorized clerks: They are the assistant or agents.They buy or sell on the behalf of employers.They can not transact business ontheir own account.

� Remisers: They are the sub-brokers. He is alsocalled the half commission men.



CAUSES OF PRICE FLUCTUATION

� DAMAND AND SUPPLY

� BANK RATE

� SPECULATIVE PRESSURE

� ACTIONS FINANCIAL INSTITUTIONS

� CHANGE IN COMPANY¶S OFFICERS

� FINANCIAL POSITION OF THE COMPANY

� TRADE CYCLE

� POLITICAL FACTORS



CONT««.

� CHANGES IN EXCHANGE RATE

� BORDER TENSION

� STOCK BROKERS SCAM LIKE HARSHAD

MEHTA AND KETHAN PAREKH� STRIKES AND LOCK-OUT OF THE COMPANY.

� NEW BUDGET PROPOSALS





OBJECTIVES OF SEBI

� Registering and regulating the working of stockbrokers,sub-brokers,share transfer agents,underwriters.who may be associated securitiesmarket in any manner.

� Registering and regulating the working of collectiveinvestment scheme including mutual funds.

� Prohibiting insider trading in securities.

� Regulating substantial acquisition of shares andtakeovers of companies.



CREDIT RATING AGENCY

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