WHAT IS STOCK EXCHANGE

Stock exchange is that place where trading of shares is done in terms of sale and purchase.

What is a stock market?

 Place where business of buying and selling

stock takes place

 The stock market is not a specific place,

though some people use the term "Dalaal Street

STOCK EXCHANGE
Stock Exchange is the place where investors go to buy/sell their shares. Once a company's public offering is complete, it gets listed in a stock exchange. After listing it would be available for trading to all investors in the stock exchanges where they are listed.

How Companies Raise The Capital

 By following mean s  Debentures  Equity  Loan s

Why Companies Issue Stock?

When a company would like to grow, it issues stocks to raise funds and pay for ongoing business activities  It is popular because:
The company does not have to repay the money Paying dividends is optional
Dividends are distributions of earnings paid to stockholders

What is a Stock?
 Stock is a share in the ownership of a

company. It represents a claim on the company's assets and earnings

 Whether you say shares, equity or stock, it all

means the same thing.

Types of share
Four types of share s
 Ordinary  Preference  Cumulative preference  Redeemable

Market Segments
 Primary market

-Channel for creation of new securities

 Secondary market

-The new securities issued in the primary market are traded the secondary market

Stock exchange world wide

 New York Stock Exchange - United States  NASDAQ (National Association of Security Dealers Automated

Quotations) - United States

 Shanghai Stock Exchange - China  London Stock Exchange

- UK

TOTAL STOCK EXCHANGES IN INDIA

1. Ahmedabad Stock Exchange 2. Bangalore Stock Exchange 3. Bhubaneshwar Stock Exchange 4. Calcutta Stock Exchange 5. Cochin Stock Exchange 6. Coimbatore Stock Exchange 7. Delhi Stock Exchange 8. Guwahati Stock Exchange 9. Hyderabad Stock Exchange 10.Jaipur Stock Exchange 11.Ludhiana Stock Exchange 1. Madhya Pradesh Stock Exchange 2. Madras Stock Exchange 3. Magadh Stock Exchange 4. Mangalore Stock Exchange 5. Meerut Stock Exchange 6. OTC Exchange Of India 7. Pune Stock Exchange 8. Saurashtra Kutch Stock Exchange 9. Uttar Pradesh Stock Exchange 10.Vadodara Stock Exchange

ISSUES
The way to invite share capital from the public is through a PUBLIC ISSUE

Types Of Issues
ISSUES

Public

Rights

Preferential

IPO

FPO

Fresh Issues

Offer for sale

How to Start?
Open Demat A/c. Open Trading A/c.

How the Market Work

NSE

Broker Broker

Public

Public

Bombay Stock Exchange (BSE)

BOMBAY STOCK EXCHANGE

The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai.

It is the third largest stock exchange in south Asia and the tenth largest in the world. BSE has over 5000 companies that are listed in it. The objectives of the BSE are similar to that of the NSE. BSE also uses the latest technologies in the IT field to provide a single place where traders from across the world can buy/sell shares in the Indian share market.

FACTS

The equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the 12th largest in the world. The BSE SENSEX , also called the "BSE 30", is a widely used market index in India and Asia. Of all if u see we have about 23 stock exchanges in india but the majority of the trading takes place in BSE and NSE.

SERVICES

BSE also has a wide range of services to empower investors and facilitate smooth transactions: Investor services BOLT BSEWEBX.com Surveillance BSE traning institute

BSE also has a wide range of services to empower investors and facilitate smooth transactions:

Investor Services: The Department of Investor Services redresses grievances of investors. BSE was the first exchange in the country to provide an amount of Rs.1 million towards the investor protection fund; it is an amount higher than that of any exchange in the country. BSE launched a nationwide investor awareness programme- 'Safe Investing in the Stock Market' under which 264 programmes were held in more than 200 cities. The BSE On-line Trading (BOLT): BSE On-line Trading (BOLT) facilitates on-line screen based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located across over 359 cities in India.

BSEWEBX.com: In February 2001, BSE introduced the world's first centralized exchange-based Internet trading system, BSEWEBX.com. This initiative enables investors anywhere in the world to trade on the BSE platform. Surveillance: BSE's On-Line Surveillance System (BOSS) monitors on a real-time basis the price movements, volume positions and members' positions and real-time measurement of default risk, market reconstruction and generation of cross market alerts. BSE Training Institute: BTI imparts capital market training and certification, in collaboration with reputed management institutes and universities. It offers over 40 courses on various aspects of the capital market and financial sector. More than 20,000 people

BSE

Index: SENSEX Sensex means sensitive index Date of Launch: 03 January 1989 Base period:1983-84 Base Index Value:100 30 Stocks Members: 852 World largest index Timing: 09.55 AM 03.30 PM Listed Co. : over 6000

Market Timings
Trading on all days of the week (except Saturdays and Sundays and holidays declared by the exchange in advance) The market timings are: Normal market open : 09:55 hours Normal market close : 15:30 hours The closing session is held between 15.50 hours and 16.00 hours in NSE and 15.40 hours and 16.00 hours in BSE

Trading on BSE and NSE

BSE and NSE provide trading facility on two segments ,which are - Cash Segment and - Derivative Segment NSE also has another segment called WDM, Wholesale Debt Market.

SENSEX-

Sensex is an index, an index is basically an indicator. It gives you a general idea about whether most of the stockshave gone up or most of the stocks have gone down. The sensex is an indicator of all the prices of the major companies of the BSE(Bombay stock exchange)

OBJECTIVE OF SENSEX
 

To measure market movements Benchmark for funds performance

For index based derivatives products

BOMBAY STOCK EXCHANGE   

The BSE or Bombay stock exchange sensitive Index is a value weighted index. Composed of 30stocks with the base April 1979=100. It consists of the 30largest and most actively traded stocks, representative of various sectors, on the BSE. These companies account for around one fifth of the market capitalization of the BSE. The abbreviated from sensex was coined by Deepak mohoni around 1990 while writing market analysis columns for some business newspaper. The index has increased by over13 times from June 1990 to today.using information from April 1979 onwards the long run rate of return on the BSE sensex can be estimated to be 0.52%per week (continuously compounded) with a standard deviation of 3.67%.this translates to 27%per annum, which translate to roughly 18% pa after compensating for inflation.

NATIONAL STOCK EXCHANGE



  

The NSE of India limited was created on the basis of the report of the high powered study group on establishment of new stock exchanger,which recommended promotion of NSE by financial institution to provide access to investors from all across the country on an equal footing. In 1992, NSE was incorporated as a tax paying company unlike other stock exchange in the country. In April 1993,NSE was recognized as a stock exchange under the securities contract(regulation) act,1956. The capital market (equities) segment commenced operation Nov. 1994 and operations in derivatives segment were started in June 2000. NSE launched s&p CNX NIFTY in April

NIFTY-

Nifty is an indicator of all the major companies of NSE. The Nifty index is a composite of the top 50stocks listed on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand what happens in the stock market & by extension, the economy.

S&P CNX NIFTY

OBJECTIVE OF NSE


Establishing nationwide trading facilities for all types of securities . Ensuring equal access to investors all over the country through an appropriate telecommunication network. Providing fair , efficient & transparent securities market using electronic trading system. Meeting international benchmark and standards.

National Stock Exchange (NIFTY)

 November 1992 as a

tax-paying company  In April 1993, it was recognized as a stock exchange.

INDEX
 SENSEX
 Sensex is an index, an index is basically an indicator.  It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The sensex is an indicator of all the prices of the major companies of the BSE(Bombay stock exchange)  It includes 30 companies

NIFTY(Nifty Fifty)

 Nifty is an indicator of all the major companies of NSE.  The Nifty index is a composite of the top 50 stocks listed on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand what happens in the stock market & by extension, the economy.

Market Timings
Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the exchange in advance) The market timings of the equities segment are: Normal market open : 09:55 hours Normal market close : 15:30 hours The closing session is held between 15.50 hours and 16.00 hours in NSE and 15.40 hours and 16.00 hours in BSE

Trading on BSE and NSE

 BSE and NSE provide trading facility on

two segments ,which are - Cash Segment and - Derivative Segment  NSE also has another segment called WDM, Wholesale Debt Market.