STOCK MARKETS

STOCK EXCHANGE DEFINITION

A marketplace in which securities, commodities, derivatives and other financial instruments are traded. The core function is to ensure fair and orderly trading, as well as efficient dissemination of price information for any securities trading on that exchange. Exchanges give companies, governments and other groups a platform to sell securities to the investing public. An exchange may be a physical location where traders meet to conduct business or an electronic platform. May also be referred to as "share exchange" or "bourse" depending on geographical location.
07-03-2014 Management of Financial Services

ROLE OF STOCK EXCHANGES

Raising capital for business:- common forms of raising capitalCorporate companies

Mobilizing savings for investments. Creating investment opportunities for small companies. Government capital rising for development projects. Facilitates company growth.
07-03-2014 Management of Financial Services

Going to public

Limited partnership

Venture capital

MAJOR STOCK EXCHANGES

ECONOMY Us & Europe Us & Europe (North) Japan United Kingdom Europe China Hong Kong Canada Brazil China India STOCK EXCHANGE Nyse Nasdaq Tokyo Stock Exchange London Stock Exchange Euronext Shanghai Stock Exchange Hongkong Stock Exchange Toronto Stock Exchange Bm&f Bovespa Shenzhen Stock Exchange National Stock Exchnge

India

Bombay Stock Exchange

SOME INDIAN STOCK EXCHANGES

Location Mumbai Mumbai Jaipur Kanpur Chennai Cochin Guwahati Ludhiana Kolkata Exchange Bombay Stock Exchange National Stock Exchange Jaipur Stock Exchange
Up Stock Exchange Association

Madras Stock Exchange Cochin Stock Exchange Guwahati Stock Exchange Ludhiana Stock Exchange Calcutta Stock Exchange

Benguluru Banglore Stock Exchange

NSE AND BSE ARE THE MAJOR STOCK EXCHANGES IN INDIA.

INDIAN ECONOMY AND CAPITAL MARKET AT A GLANCE

India has T+2 rolling settlement as opposed to T+3 in NYSE. In India the transactions are totally electronic on a real time basis. India has several protective safeguards for the retail investor such as grading system of public offering, retail quota at 25 per cent etc. As an integral part of risk management trading and exposure limits, various margins and mark to market margins are in vogue Clearing houses in place Almost 100 per cent risk free electronic settlement through depository system SEBI - Regulatory Body - has a surveillance and enforcement system in place

MARKET INFRASTRUCTURE
Stock exchange Clearing and settlement Education and training Investors protection Rating agency Instruments: Equities Bonds
Intermediaries

Brokerage houses
Hand in Hand Beharry stockbrokers Trust company GuyAmerica

Stock brokers Advisors

THE REGULATOR
Foremost authority presiding over the capital markets With mission to promote and maintain Fair, efficient , secure and transparent market and to facilitate the orderly development of the stock exchange
Protection to minority Shareholders Enhance market confidence Disclosure Strong industry regulator

Corporate Governance

LISTING AND DELISTING

There are specific requirements for allowing a public company to list its securities on the Stock Exchange these are set out in the legislation. Its benefits are: Visibility Market support Investors confidence Increased demand for products and services Overall increase in profitability Stock exchange can delist companies for a number of reasons including : Merger with another company Solvency problems Name change company asked to be removed Failure to comply with exchange rules

FINANCING THE EXCHANGE

Transaction fees paid by members for each order executed Fees paid by firms when their securities are originally listed Annual fees by firms Entrance fees from new members Sale of historic trading and market information
Some type of orders Limit order Market order Day order Open All or none Any part Good through

CHALLENGES
Cross border trading Issuers and investors are expanding their horizons beyond their home markets Investors becoming much more demanding