BMT 3001

Financial Management

DIGITAL ASSIGMENT

- SUBMITTED TO: Prof. RAJESH M

- SUBMITTED BY: ABHAY KUMAR

- REGISTRATION NO. : 20BBA0080

- DATE OF SUBMISSIONS: 30/08/2021

What is active market?

An active market is a market that routinely experiences high transaction volumes. There is
usually a small spread between bid and ask prices, since there are so many buyers and sellers
who are interested in trading.

Different types of market

What is Stock Market?

The stock market refers to the collection of markets and exchanges where regular activities of
buying, selling, and issuance of shares of publicly-held companies take place. Such financial
activities are conducted through institutionalized formal exchanges or over-the-counter
(OTC) marketplaces which operate under a defined set of regulations. There can be multiple
stock trading venues in a country or a region which allow transactions in stocks and other
forms of securities.
Nowadays media telecast the particular topic what we want to see. Media houses earn most of
their money through advertisement, and the company that want to advertise themselves will
choose only those television channels or media houses which are popular among the audience
or we can say general public. So basically media house broadcast what we want to see.

Stock market is the basic of investing or we can say if anyone wants to start investing or
trading they should start from stock market. What we all need a demat account and capital.
Most of the people start their investing journey through stock exchange.

So at the end we can say most of the population is concern with stock exchange that’s why
stock market receives the most attraction from media.

Let’s look at the reasons why stock market attracts general public:

Ownership

Buying shares of stock means taking on an ownership stake in the company you purchase
stock in. This means that investing in the stock market also brings benefits that are part of
being one of a business's owners.

Diversification
For investors who put money into different types of investment products, a stock market
investment has the benefit of providing diversification. Stock market investments change
value independently of other types of investments, such as bonds and real estate. Holding
stock can help you weather losses to other investment products.

Investment Gains

One of the primary benefits of investing in the stock market is the chance to grow your
money. Over time, the stock market tends to rise in value, though the prices of individual
stocks rise and fall daily. Investments in stable companies that are able to grow tend to
make profits for investors.

Return on Investment

Historical returns related to stock market investing outperform many other types of
investments. According to Vanguard, the historical average return for stocks from 1926 to
2017 is 10.3 percent. In contrast, the average return for bonds during the same period is 5.4
percent.

S&P 500 Index Stock Market Returns

Year Return

2013 32.39%
2014 13.69%
2015 1.38%
2016 11.96%
2017 21.83%
2018 -4.38%
2019 31.49%
References

https://www.moneycontrol.com/stocksmarketsindia/

https://www.investopedia.com/articles/investing/082614/how-stock-market-works.asp

https://www.nseindia.com/

https://www.wise-geek.com/what-is-an-active-market.htm