STOCK EXCHANGE EASY WAY TO EARN MONEY,EASY WAY TO LOOSE
MONEYPresented BYAvinash.Ainesh.RWHAT IS STOCK
EXCHANGE?e!niti"n"#St"$%E&$han'e(These$)rities re')*ati"n a$t
"# +,-. de!ned st"$% e&$han'e as /an
ass"$iati"n,"r'ani0ati"n,"raindivid)a*1hi$his
esta2*ished#"r#"rthe3)r3"se"#assistin', re')*atin' , and
$"ntr"**in' 2)siness in 2)4in' ,se**in' and dea*in' in
se$)rities.5Meanin' ( This $"6es )nder treas)r4 se$t"r ,1hi$h
3r"videsservi$et"st"$%2r"%ers7traderst"trade
st"$%s,2"ndsandse$)rities.St"$%e&$han'eshe*3s
the$"63aniest"raisetheir#)nd.There#"rethe
$"63aniesneedst"*istthe6se*vesintheSt"$%
E&$han'eandtheshares1i**2eiss)ed1hi$his
%n"1nase8)it4"ra"rdinar4shareandthese
shareh"*dersaretherea*"1ners"#the$"63an4the B"ard O# ire$t"rs "#
the C"63an4 are e*e$ted ")t "# these E8)it4 Shareh"*ders
"n*4.FEATURES OF STOCK EXCHANGE9t is an "r'ani0ed 6ar%et9t is a
se$)rities 6ar%et9t is an i63"rtant $"nstit)ent "# $a3ita* 6ar%et
i.e., 6ar%et #"r *"n':ter6 !nan$e9t is a v"*)ntar4 ass"$iati"n "#
3ers"ns desir")s "# dea*in' in se$)ritiesSt"$% e&$han'e is a
v"*)ntar4 ass"$iati"n, its 6e62ershi3 is n"t "3en t" ever42"d49n a
st"$% e&$han'e, "n*4 the 6e62ers $an dea* in i.e., 2)4 7 se**
se$)ritiesThe 6e62ers "# a st"$% e&$han'e $an 2)4 and se**
se$)rities either as 2r"%ers #"r 7 "n 2eha*# "# their $*ientsThe
dea*in's in a st"$% e&$han'e are )nder $ertain a$$e3ted $"de "#
$"nd)$t i.e., r)*es and re')*ati"nsIMPORTANT FUNCTION OF STOCK
EXCHANGEPr"vide $entra* and $"nvenient 6eetin' 3*a$es #"r se**ers
and 2)4er "# se$)rities9n$rease the 6ar%eta2i*it4 and *i8)idit4 "#
se$)ritiesC"ntri2)te t" sta2i*it4 "# 3ri$es "#
se$)ritiesE8)a*i0ati"n "# 3ri$e "# se$)ritiesS6""then 3ri$e
6"ve6entHe*3 the invest"rs t" %n"1 the 1"rth "# their h"*din's
Pr"6"tethe ha2it "# savin' and invest6entHe*3 $a3ita* #"r6ati"nHe*3
$"63anies and '"vern6ent t" raise #)nds #r"6 the invest"rsPr"vide
#"re$astin' servi$eH9STORY O; STOCK EXCHANGE The st"$% e&$han'e
1as esta2*ished 24 /East 9ndia $"63an45in+ st"$% 2r"%ers "33"site
t"t"1nha**B"62a4.Thisst"$%e&$han'eis %n"1n as "*dest st"$%
e&$han'e "# Asia.9nitia* 6e62ers 1h" are sti** r)nnin' their
2)siness in st"$% e&$han'e are.S.Pra2h)das 7$"63an4?a6nadas
M"rar@ee Cha63a% *a* evidasBr46"han La&6inara4anBROKER AN
?OBBERBROKER: He is "ne a$ts as a inter6idiar4 "n 2eha*# "# "thers.
A 2r"%er in a st"$% e&$han'e ,is a $"66issi"n a'ent 1h"
transa$ts 2)siness in se$)rities "n 2eha*# "# n"n 6e62ers.JOBBER:
He is n"t a**"1ed t" dea* 1ith the 3)2*i$ dire$t*4 .He dea*s 1ith
2r"%ers 1h" are en'a'ed 1ith the invest"rs . Th)s, the se$)rities
is 2")'ht 24 the @"22er #r"6 6e62ers and se**s t" 6e62ers 1h" are
"3eratin' "n the st"$% e&$han'e as 2r"%er.DIFFERENCES BETWEEN A
JOBBER AND A BROKERJOBBERA @"22er is an inde3endent dea*er in
se$)rities, 3)r$hasin' "r se**in' se$)rities "n his "1n a$$")ntA
@"22er dea*s "n*4 1ith the 2r"%ers ,d"es n"t dea* 1ith the 'enera*
3)2*i$A @"22er earns 3r"!t #r"6 his "3erati"ns i.e., 2)4in' and
se**in' a$tivitiesEa$h @"22er s3e$ia*i0es in $ertain 'r")3 "#
se$)ritiesBROKERA 2r"%er dea*s 1ith the @"22er "n 2eha*# "# his
$*ients. in "ther 1"rds, a 2r"%er is a 6idd*e6an 2et1een a @"22er
and $*ientsA 2r"%er is 6ere*4 an a'ent, 2)4in' "r se**in'
se$)rities "n 2eha*# "# his $*ientsA 2r"%er 'ets "n*4 $"66issi"n
#"r his dea*in'sThe2r"%er dea*s in a** t43es "#
se$)ritiesSPECALAT9ON AN SPECALATORSPECULATION : 9t is the
transa$ti"n "# 6e62ers t" 2)4 "r se** se$)rities "n st"$%
e&$han'e 1ith a vie1 t" 6a%e 3r"!ts t" anti$i3ated raise "r
#a** in 3ri$e "# se$)rities.SPECULATOR ( The dea*er in st"$%
e&$han'e 1h" ind)*'e in s3e$)*ati"n are $a**ed s3e$)*at"r .
The4 d" n"t ta%e de*iver4 "# se$)rities 3)r$hased "r s"*d 24 the6 ,
2)t "n*4 3a4 "r res$)e the diBeren$e 2et1een the 3)r$hase 3ri$e and
sa*e 3ri$e . The diBerent t43es "# s3e$)*at"rs are BALLBEAR
STAGLAME ACKBALL CTE?9WALADHe is s3e$)*at"r 1h" e&3e$ts the
#)t)re raise in 3ri$e "# se$)rities he 2)4s the se$)rities t" se**
the6 at #)t)re date at the hi'her 3ri$e.He is $a**ed as 2)**
2e$a)se his a$tivities rese62*es as a 2)** , as the 2)** tends t"
thr"1 its vi$ti6s )3 in the air thr")'h its h"rns. 9n si63*e the
2)** s3e$)*at"r tries t" raise the 3ri$e "# se$)rities 24 3*a$in' a
2i' 3)r$hase "rders.BEAR CMAN9WALADHe is s3e$)*at"r 1h" e&3e$ts
#)t)re #a** in 3ri$es , he d"es an a'ree6ent t" se** se$)rities at
#)t)re date at the 3resent 6ar%et rate .He is $a**ed as 2ear
2e$a)se his a*tit)de rese62*es 1ith 2ear , as the 2ear tends t"
sta63 its vi$ti6s d"1n t" earth thr")'h its 3a1s . 9n si63*e the
2ear s3e$)*at"r #"r$es "# 3ri$es "# se$)rities t" #a** thr")'h his
a$tivities.STAG CEERD He "3erates in ne1 iss)e "# 6ar%et . He is
@)st *i%e a 2)** s3e$)*at"r . He a33*ies *ar'e n)62er "# shares in
the iss)e 6ar%et "n*4 24 3a4in' , a33*i$ati"n 6"ne4 , a**"t6ent
6"ne4. He is n"t a 'en)ine invest"r 2e$a)se , he se**s the a**"ted
se$)rities at the 3re6i)6 and 6a%es 3r"!t. 9n si63*e he is $a)ti")s
in his dea*in's . He $reates an arti!$ia* rise in 3ri$es "# ne1
shares and 6a%es 3r"!ts.LAME ACKHe is s3e$)*at"r 1hen the 2ear
"3erat"r !nds it diE$)*t t" de*iver the se$)rities t" the $"ns)6er
"n a 3arti$)*ar da4 as a'reed )3"n , he str)''*es as a *a6e d)$% in
#)**!**in' his $"66it6ent . This ha33ens 1hen the 3ri$es d" n"t
#a** as e&3e$ted 24 the 2ear and the "ther 3art4 is n"t 1i**in'
t" 3"st3"ne the sett*e6ent t" the ne&t 3eri"d.Lar'est st"$%
e&$han'es IN THE WORLDLONON STOCK EXCHANGENEW YORK STOCK
EXCHANGESHANHA9 STOCK EXCHANGEAASTRAL9A STOCK EXCHANGETOKYO STOCK
EXCHANGEHONG KONG STOCK EXCHANGETORONTO STOCK EXCHANGEEATSCHE
BORSEBM7; BOFESPANASAG OMX STOCK EXCHANGEIN INDIANAT9ONAL STOCK
EXCHANGEBOMBAY STOCK EXCHANGECALCATTA STOCK EXCHANGECOCH9N STOCK
EXCHANGEMALT9 COMMO9TY EXCHANGEER9FAT9FES EXCHANGEOTC EXCHANGE PANE
STOCK EXCHANGE9NTERCONNECTS EXCHANGELONON STOCK EXCHANGE9t 1asthe
!rst st"$% e&$han'e esta2*ished 24 east 9ndia $"63an4 in
+.;eat)res "# OTCE9+. 9t is a nati"n:1ide st"$% e&$han'e. 9ts
"3erati"na* areas $"ver entire 9ndia.>. 9t is a rin'*ess st"$%
e&$han'e. The tradin' rin'Li.e., tradin' 3*a$eM$"66"n*4 #")nd
in a traditi"na* st"$% e&$han'e is n"t #")nd in the OTCE9.I. 9t
is a $"63)teri0ed st"$% e&$han'eAdvanta'es "# OTCE9J. 9t he*3s
the invest"rs t" have eas4 and dire$t a$$ess t" the st"$%
e&$han'e-. 9t he*3s invest"rs t" 'et #air 3ri$es #"r their
se$)rities.. 9t 3r"vide sa#et4 t" the invest"rsH. T" 3r"vide
$"63)teri0ed tradin' s4ste6th A3ri*,+,
