COMMERCE MANAGEMENT & COMPUTER SCIENCE

(CMCS) COLLEGE, NASHIK – 13

PROJECT REPORT

ON

“SHARE AND STOCK MARKET”

SUBMITED

BY

Yash Ramakant Khairnar

Roll No. 41

UNDER THE GUIDANCE OF

PROF. AJINKYA PATIL

SUBJECT – BUSINESS MATHEMATICS

CLASS – FY.BBA

SEMISTER – 1

2020-2021
 ACKNOWLEDGEMENT :

I take this opportunity to express my profound gratitude and deep regards to my guide MR. AJINKYA
PATIL for his exemplary guidance, monitoring and constant encouragement throughout the course
of this thesis. The blessing, help and guidance given by him time to time shall carry me a long way in
the journey of life on which I am about to embark. I also take the opportunity to express a deep
sense of gratitude to my friends and teachers for their valuable information and guidance, which
helped me in completing this task through various stages.

Lastly, I thanks almighty, my parents and friends for their constant encouragement
without which this project

Declaration
The project on STUDY OF STOCK & SHARE MARKET .Under the
guidance of Prof. A.P. Patil Sir. The original work done by me. This is the
property of the college and use of this report without prior permission of the
institute will be considered illegal and actionable.

Date: / / 20 Signature-
INDEX
Chapter 1 Introduction
Chapter 2 Industry profile
Chapter 3 selection of topic
Learning Objectives
Scope of Study
Data Sources
Chapter 4 Findings
INDIAN STOCK EXCHANGE
NATIONAL STOCK EXCHANGE
BOMBAY STOCK EXCHANGE
STOCK MARKET TIMINGS IN
INDIA
Normal Trading Session:
Pre- Opening Session:
Post Closing Session
ROLE OF STOCK EXCHANGE
STOCK MARKET TERMINOLOGY
SEBI
ORGANIZATION
STRUCTURE OF SEBI
OBJECTIVES of SEBI
ROLE OF SEBI
FUNCTIONS OF SEBI
Top 25 LISTED COMPANIES
TRADING PROCEDURE
Types of Trading
PORTFOLIO

Chapter 5 Conclusion
Annexure
Bibliography
Chapter 1

Introduction
A stock market, equity market or share market is the aggregation of buyers
and sellers of stocks (also called shares), which represent ownership claims on
businesses; these may include securities listed on a public stock exchange, as
well as stock that is only traded privately, such as shares of private companies
which are sold to investors through equity crowdfunding platforms.
Investment in the stock market is most often done via stockbrokerages and
electronic trading platforms. Investment is usually made with an investment
strategy in mind

History of world
In 12th-century France, the courretiers de change were concerned with
managing and regulating the debts of agricultural communities on behalf of
the banks. Because these men also traded with debts, they could be called the
first brokers. A common misbelief[citation needed] is that, in late 13th-century
Bruges, commodity traders gathered inside the house of a man called Van der
Beurze, and in 1409 they became the "Brugse Beurse", institutionalizing what
had been, until then, an informal meeting, but actually, the family Van der
Beurze had a building in Antwerp where those gatherings occurred;[18] the
Van der Beurze had Antwerp, as most of the merchants of that period, as their
primary place for trading. The idea quickly spread around Flanders and
neighboring countries and "Beurzen" Ghent and Rotterdam.

In the middle of the 13th century, Venetian bankers began to trade in

government securities. In 1351 the Venetian government outlawed spreading
rumors intended to lower the price of government funds. Bankers in Pisa,
Verona, Genoa and Florence also began trading in government securities
during the 14th century. This was only possible because these were
independent city-states not ruled by a duke but a council of influential citizens.
Italian companies were also the first to issue shares. Companies in England and
the Low Countries followed in the 16th century. Around this time, a joint stock
company--one whose stock is owned jointly by the shareholders--emerged and
became important for colonization of what Europeans called the "New World".

Birth of formal stock markets

In the 17th and 18th centuries, the Dutch pioneered several financial
innovations that helped lay the foundations of the modern financial system.
While the Italian city-states produced the first transferable government bonds,
they did not develop the other ingredient necessary to produce a fully fledged
capital market: the stock market. In the early 1600s the Dutch East India
Company (VOC) became the first company in history to issue bonds and shares
of stock to the general public. As Edward Stringham (2015) notes, "companies
with transferable shares date back to classical Rome, but these were usually
not enduring endeavors and no considerable secondary market existed (Neal,
1997, p. 61)." The Dutch East India Company (founded in the year of 1602) was
also the first joint-stock company to get a fixed capital stock and as a result,
continuous trade in company stock occurred on the Amsterdam Exchange.
Soon thereafter, a lively trade in various derivatives, among which options and
repos, emerged on the Amsterdam market. Dutch traders also pioneered short
selling – a practice which was banned by the Dutch authorities as early as
1610. Amsterdam-based businessman Joseph de la Vega's Confusion de
Confusiones (1688) was the earliest known book about stock trading and first
book on the inner workings of the stock market (including the stock exchange).

Crowd gathering on Wall Street (New

York City) after the 1929 crash, one of
the worst stock market crashes in
history.

There are now stock markets in virtually every developed and most
developing economies, with the world's largest markets being in the United
States, United Kingdom, Japan, India, China, Canada, Germany (Frankfurt Stock
Exchange), France, South Korea and the Netherlands.

History of Indian stock exchange

The first organised stock exchange in India was started in 1875 at
Bombay and it is stated to be the oldest in Asia. In 1894 the Ahmedabad Stock
Exchange was started to facilitate dealings in the shares of textile mills there.
The Calcutta stock exchange was started in 1908 to provide a market for shares
of plantations and jute mills.
Then the madras stock exchange was started in 1920. At present there
are 24 stock exchanges in the country, 21 of them being regional ones with
allotted areas. Two others set up in the reform era, viz., the National Stock
Exchange (NSE) and Over the Counter Exchange of India (OICEI), have mandate
to have nation-wise trading.
They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar,
Mumbai, Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore,
Jaipur’ Kanpur, Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot.
The Stock Exchanges are being administered by their governing boards
and executive chiefs. Policies relating to their regulation and control are laid
down by the Ministry of Finance. Government also Constituted Securities and
Exchange Board of India (SEBI) in April 1988 for orderly development and
regulation of securities industry and stock exchanges.
 Chapter 2
Industry Profile
Overview of financial sector
India's economic progress, which is largely dependent on the
Financial Sector, is not only a key factor of stability in the global economy, but
also a source of immense economic opportunity for the world. The far-
reaching changes in the Indian economy since liberalization in the early 1990s
have had a deep impact on the Indian financial sector. India’s financial sector
has been one of the fastest growing sectors in the economy. The economy has
witnessed increased private sector activity including an explosion of foreign
banks, insurance companies, mutual funds, venture capital and investment
institutions. The various steps taken by the government and the regulators
since liberalization to meet the challenges of a complex financial architecture
have ensured that a new face of the Indian financial sector is emerging to
culminate into a strong, transparent and resilient system.

Several new instruments and products have been introduced.

Existing sectors have been opened to new private players. The entry of new
players has led to existing players upgrading their product offerings and
distribution channels. Financial intermediaries too have gradually moved to
internationally acceptable norms for income recognition, asset classification,
provisioning and capital adequacy. This has given a strong impetus to the
development and modernization of the financial sector. Going forward the aim
would be to achieve international standards in this area within the shortest
possible time frame. With this firm resolve, FICCI’s Financial Sector aims to
facilitate a comprehensive forum for dialogue between India Inc. and policy
makers thereby aiming to provide necessary directions to all stake holders and
business processes.
Chapter 3

Selection of topic : Stock & Share Market

Learning Objectives :
1. To understand the concept of shares.
2. To understand what is stock market.
3. To understand how to invest in stock market.
4. To understand what role performed by SEBI & RBI in stock market.
5. To understand the trading process of shares.
6. To understand the network of stock exchange in India.

Future Scope of Study :

1. To analyze movt. Of share prices.

2. To analyze movt. Of the sharing process of various companies.

Data Sources :
Source of information for this project is only secondary data. The data
about the government policies with respect to the sector, and the
Information about the companies is all gathered from secondary sources,
available on the websites, annual reports, business magazines
Chapter 4

INDIAN STOCK EXCHANGE

Indian Stock Exchanges may refer to the 18 official stock exchanges located in
India, the largest of which are NSE and BSE. All of them are as follows: -

1. Bombay Stock Exchange (BSE) — Mumbai

2. National Stock Exchange (NSE) — Mumbai
3. Calcutta Stock Exchange (CSE) — Kolkata
4. Cochin Stock Exchange — Kochi
5. Interconnected Stock Exchange of India
6. Multicommodity Stock Exchange
7. OTC Exchange of India
8. Pune Stock Exchange — Pune
9. National commodity and derivatives Exchange
10. P Stock Exchange
11. Vadodara Stock Exchange
12.Coimbatore Stock Exchange
13.Madras Stock Exchange
14.Meerut Stock Exchange
15.Ahmedabad Stock Exchange
16.Hyderabad Stock Exchange
17.Bangalore Stock Exchange
 NATIONAL STOCK EXCHANGE

The National Stock Exchange of India Limited (NSE) is the leading stock
Exchange of India, located in Mumbai. It is established in 1992 as the first
demutualized electronic exchange in India, and so it was the first exchange to
provide a modern, fully-automated system. Vikram Limaye is M.D and CEO
NSE.

NSE has a total market capitalization of more than US $2.7 trillion, making it
the world's 1 1th largest stock exchange as of April 2018. NSE's flagship index,

NIFTY 50, the 50 stock index, is used extensively by investors in India and
around the world as a barometer of Indian Capital Markets. Nifty Fifty Index
was launched in 1996 by the NSE.

The stock trading at the BSE and NSE accounts for only around 4% of the Indian
Economy, which derives most of its incomerelated activity from the so-called
underdeveloped sector and households.
BOMBAY STOCK EXCHANGE

The Bombay Stock Exchange (BSE) is an Indian Stock Exchange located at Dalal
street Mumbai. Established in 1875, the BSE is Asia's first stock exchange. It
claims to be the world's fastest stock exchange, with a median trade speed of 6
microseconds. It is also the world's 10th largest stock exchange, with an overall
market capitalization of more than $2.3 trillion as of April 2018.

Premchand Roychand founded the Bombay Stock Exchange. He was one of the
most influential businesses in the 19th century. A man who made a fortune in
stockbroking business and came to be known as the Cotton King, the Bullion
King, or just the Big Bull.

STOCK MARKET TIMINGS IN INDIA

Normal Trading Session:

• This is the actual time when most of the trading takes place.
Its duration is between 9:15 AM to 3:30 pm.

You can buy and sell stocks in this session.

It follows a bilateral trading session, i.e., Whenever buying price is equal to

selling price; then the transaction is complete

Pre- Opening Session:

The duration is between 9:00 AM to 5 Am. This is further sub-divided in three

sub-sessions:

1) 9:00 AM to 9:08 AM: - This is the order entry session. You can place an order
to buy and sell stocks in this duration.

2) 9:08 AM to 9:12 AM: - This session is used to order matching and for
calculating the order price of the normal session.

3)9:12 AM to 9:15 AM: - This session is used as a buffer speed. It is used for the
smooth translation of the pre-project session to the normal session.

4) The time between 3:30 pm to 3:40 pm is used for closing price Calculation

5) The closing price of a stock is the weighted average of the prices between
3:00 PM to 3:30 PM.

6) For the indexes like Sensex & nifty, it's the closing price is a time-weighted
average of the constituent stocks for the last 30 mins, i.e., between 3 pm to
3:30 pm.

Post Closing Session

1. The duration of the post-closing session is between 3:40 pm to 4:00 PM

2. You can buy or sell stocks in the post-closing session at the closing price.
 ROLE OF STOCK EXCHANGE

Stock exchange, apart from being the hub of the primary and secondary
market, a very important role to play in the economy of the country.

some of them are listed below:

Raising capital for businesses

Exchanges help companies to capitalize by selling shares to the investing

public.

Mobilizing savings for investment

They help the public to mobilize their savings to invest in high yielding
economic sectors.

Facilitating company growth

They help companies to expand and grow by acquisition or fusion.

Profit-Sharing

They help both casual and professional stock investors, to get a share in the
wealth of profitability businesses.

Cooperate governance

Stock exchanges improve stringent rules to get listed in them.

Creating investment opportunities for small investors

Small investors can also participate in the growth of large companies.

The government in Capital raises for development projects

They help govt to rise for development activities through the issue of bonds.

Barometer of the Economy

They maintain the stock indexes, which are indicators of the general trend
 STOCK MARKET TERMINOLOGY

1) Ask The price that a seller is willing to ask for a share of Stock.

2) Back Testing: Applying the strategy to historical data to see if it is valid.

3) Bear Market: A period of declining stock value, usually accompanied by

investor pessimism.

4) Block Trade: Buying or selling a large project, confidentially, it.

5) Blue Chip: A established co. with a national or international reputation

for stability, profitability, and value

6) Blue Market: A period of rising stock value, usually accompanied by

investor optimism in it.
 7) Bid: Price that a buyer is willing to pay for a share stock.

8) Close: The price of the stock at the end of the trading day.

9) Dividend: A payment made of companies' profits to their shareholders.

10) Earning per share (EPS): The Companies' profit divided by the average
number of outstanding shares.

11) Electronic Communication Networks (ENC): Computer system that

facilitates stock trading outside of a stock exchange.

12) Fill or kill (Fok): - when you want all of your order filled immediately or
none at all.

13) Fundamental Analysis: - Examining the financial health and strength of a

company to determine its Share price, future value, and earning
expectations.

14) Hedge: - Limiting your classes or reducing risk by placing orders to cover
two or more possible events in the market.

15) Initial Public offering: When the first-time company issues its shares in
public on an exchange.

16) Limit Order: When you want to buy or sell a stock at a specific price or
better.

17) Liquidity: Being able to sell or buy shares in a stock w/o the transaction
seriously affecting the stock's price.

18)Margin: Borrowing money to trade for more than what you have in your
account.

19) Volume: The amount of a share being traded at a given point of time.
 SEBI

In the 1980s, huge malpractices and frauds were emerging in the stock
market of India. This was due to huge sudden cash flow in the market.

Everyone wanted to get rich very quickly by finding loopholes in the system.
Most prominent of those frauds were price rigging. Union government of
India noticed a decrease in figures and decided to form an organization,
which can help recover the decrease in the financial market in India. SEBI
was established in 1988. The primary role at that time was to observe the
market, but SEBI had no power to control anything. It was a non-statutory
body. To give it powers, union govt of India passes the SEBI act 1992.

ORGANIZATION STRUCTURE OF SEBI

1) There are main nine members in the SEBI Board

2) One Chairman appointed by Govt. of India.

3) Two members are officers from the union finance ministry.

4) One number from RBI.

5) Five members are appointed by union Govt of India, where three are
whole-time members.

OBJECTIVES of SEBI

1) To provide a transparent and healthy platform for corporates to raise

funds from the financial market.

2) To create and enforce bye-laws for corporations and financial

intermediaries.

3) To protect the right of investors and ensure the safety of their

investment.

4) Listen and provide a support system for investor grievances.

5) yPromote and Develop the financial market of India.

ROLE OF SEBI

SEBI was established to regulate the financial market of India. To achieve

this objective, it takes care of the three most important entities of financial
Market, i.e.

1) Issuers Of Securities

These are corporate entities that raise funds from the financial market. SEBI
ensures that they get a transparent and healthy environment for their
needs.

2) Investors
 These are the ones who keep the financial market alive. They earn from
those markets; thus, it is the responsibility of SEBI to ensure that investors
don't prey any manipulation of fraud in the market.

3) Financial Intermediaries

These intermediaries act as a mediator in the financial market. Their

presence brings smoothness and safety in financial institutions.

FUNCTIONS OF SEBI

• Protective Functions

As protective functions, SEBI performs the following functions:

1) SEBI checks price rigging

2) SEBI prohibits insider trading

3) SEBI prohibit fraudulent activities and unfair trade practices

4) SEBI sometimes educate the investors so that it becomes able to evaluate

the Securities and always invest in profitable securities.
5) SEBI issues guidelines to protect the interest of debenture holders

6) SEBI is empowered to investigate cases of insider trading and has provision

for stiff fine and imprisonment

7) SEBI has stopped the practice of allotment of preferential shares unrelated

to market issues.

• Development Functions

1) SEBI promotes trading of intermediaries of the Securities Market

2) SEBI tries to promote activities of stock exchange by adopting a flexible and
adaptable approach in the following way:
3) SEBI has permitted internet trading through registered Stockbrokers.
4) SEBI has made underwriting optional to reduce the cost of the issue. An
even initial public offer of the primary market is permitted through the stock
exchange.

• Regulatory Functions

1) SEBI has framed sucks and regulations and a code to regulate the
intermediaries.

2) These intermediaries have been brought under the regulatory purview, and
private placement has been made more restrictive.

3)SEBI registers and regulates the working of Stockbrokers, sub, brokers, share
transfer agents, trusties, merchant bankers, and all those who are associated
with the stock exchange in any many manners.

4) SEBI registers and regulates the working of mutual funds, etc.

5) SEBI regulates the takeover of the company (ies).

6) SEBI conducts audits and inquiries of the stock exchange

Top 25 LISTED COMPANIES
Trading Procedure

1. Selection of a broker:
The buying and selling of securities can only be done through SEBI registered
brokers who are members of the Stock Exchange. The broker can be an
individual, partnership firms or corporate bodies. So the first step is to select a
broker who will buy/sell securities on behalf of the investor or speculator.

2. Opening Demat Account with Depository

Demat (Dematerialized) account refer to an account which an Indian citizen
must open with the depository participant (banks or stock brokers) to trade in
listed securities in electronic form. Second step in trading procedure is to open
a Demat account.

The securities are held in the electronic form by a depository. Depository is an

institution or an organization which holds securities (e.g. Shares, Debentures,
Bonds, Mutual (Funds, etc.) At present in India there are two depositories:
NSDL (National Securities Depository Ltd.) and CDSL (Central Depository
Services Ltd.) There is no direct contact between depository and investor.
Depository interacts with investors through depository participants only.

Depository participant will maintain securities account balances of investor

and intimate investor about the status of their holdings from time to time.

3. Placing the Order:

After opening the Demat Account, the investor can place the order. The order
can be placed to the broker either (DP) personally or through phone, email,
etc.

Investor must place the order very clearly specifying the range of price at
which securities can be bought or sold. e.g. “Buy 100 equity shares of Reliance
for not more than Rs 500 per share.”

4. Executing the Order:

As per the Instructions of the investor, the broker executes the order i.e. he
buys or sells the securities. Broker prepares a contract note for the order
executed. The contract note contains the name and the price of securities,
name of parties and brokerage (commission) charged by him. Contract note is
signed by the broker.

5. Settlement:
This means actual transfer of securities. This is the last stage in the trading of
securities done by the broker on behalf of their clients. There can be two types
of settlement.

(a) On the spot settlement:

It means settlement is done immediately and on spot settlement follows. T + 2
rolling settlement. This means any trade taking place on Monday gets settled
by Wednesday.

(b) Forward settlement:

It means settlement will take place on some future date. It can be T + 5 or T +
7, etc. All trading in stock exchanges takes place between 9.55 am and 3.30
pm. Monday to Friday.

Type of trading

1) Intraday trading

In intra day trading, shares are bought on the same day and sold until the
market closes on the same day. This type is for share market experts. If you are
new, intraday trading is not for you.

2) Scalper Trading

Scalper trading is a form of stock buying in which the shares are sold within 5-
10 minutes of purchase. This type is the most risky type in the stock
market. This method of trading is done when a new law comes into the
country or when there is big news in the financial sector.

3) Swing trading / Short Term

Swing trading is done for a short period of time. In this, shares are bought and
delivered to your account. After this, the shares are kept with you waiting for a
price increase for a few months or weeks and if the right price comes, you
make a profit by selling the stock. In this case the risk is less.

4) Long term trading

The method of buying shares and keeping them with you for a long period of
time is called long term trading. In this, the investor keeps the shares with him
for a period of six months to ten years or more. If the company's business
grows during this period, the investor in long term trading makes a good
profit. The risk is very low in long term trading. This advises new investors to
invest money in long term trading.

PORTFOLIO

An investment portfolio is a collection of assets owned by an individual or by

an institution. An investor's portfolio includes real estate and so-called 'hard'
assets, such as a gold ban.

Imaginary Portfolio

Imaginary portfolio totaling a sum of approximately Rs. 50,000 in of the five

companies listed above. TOTAL SHARES - 96

TOTAL AMOUNT INVESTED OUT

OF Rs. 50.000; 49878

SBI

State Bank of India (SBI) is an Indian, multi-national, public sector banking and
financial services company.

It is government-owned cooperation headquartered in Mumbai,

Maharashtra. The company is ranked 217th on the Fortune Global 500 list of
the world's biggest corporations as of 2017. It is the largest bank in India with a
23% market share in assets, besides a share of 1/4th of the total loan and
deposits market.

The Bank descends from the Bank of Calcutta, founded in 1 806, via the
Imperial Bank of India, making it the oldest commercial bank in the Indian
subcontinent, and it turns in SBI in the year 1955.
ITC

ITC Limited or ITC is an Indian based company, originally based on

Kolkata, West Bengal. Its diversified business includes five segments: Fast
Moving Manufactured Goods (FMCG), Hotels, Paperboards & Packaging,
Agribusiness, and Information Technology.

Though cigarette business contributes more than 80% profits of the company,
80% of the capital is invested in the non- tobacco business.

Established in 1910, as the Imperial Tobacco Company of India Limited, the

company was renamed as Indian Tobacco Company Limited in 1970, and later
to T-T-C and limited in 1974. The dots In the name were removed in 2001 for
the company to be renamed as ITC limited.

Its employees over 30000 people at more than 60 location across India and is
part of the Forbes 2000 list.
RELIANCE

Reliance Industries Limited (RIL) is an Indian conglomerate holding company

headquartered in Mumbai, Maharashtra, India.

Reliance owns businesses across India engaged in energy, petrochemicals,

textiles, natural resources, retail, and telecommunications. It is one of the
most profitable companies in India, the second-largest publicly traded co. in
India by market capitalization, and it is the first company to reach $100 billion
market capitalization. The company is ranked 203 rd on Fortune Global 500 list
of the world's biggest corporations as of 2017. It continues to be India's largest
exporter, accounting for 8% of India's total merchandise exports with a value
of ? 147, 155 crores, and access to markets in 108 countries. It is also the
highest income tax payer in the private sector.
KOTAK MAHINDRA BANK

Kotak Mahindra Bank is an Indian Private Sector Bank headquartered in

Mumbai, Maharashtra, India. In February 2003, RBI gave the license to Kotak
Mahindra Finance Ltd., the group flagship company, to carry on the banking
business.

It offers a wide range of banking products and financial services for corporate
and retail customers through a variety of delivery channels and specialized
subsidiaries in the areas of personal finance, investment banking, general
insurance, life insurance, and wealth management. Bank has a network of
1369 branches across 639 locations and 21 63 ATMs in the country.

AXIS BANK

Axis Bank is the third largest of private sector banks in India, offering a
comprehensive suite of financial products. Headquartered in Mumbai, it has a
registered office in Ahmedabad. It has 3703 branches, 13814 ATMs, and nine
international branches.
The Bank employed over 55000 people and had a market capitalization of ?
1.31 trillion. It sells financial services to large and mid-sized corporations, SME.

As of 30 June 201 6, 30.81% of shares are owned by promoters and their

group. Remaining 69.19% are owned Mutual Funds and others.
Chapter 5

CONCLUSION

• Summarized Finding

1. Over some time, many stock exchanges have been developed in India.

2.The imaginary portfolio consists of SBI, ITC, Reliance, Kotak, and Axis Bank.

3.The Negotiable Instrument Act governs stock exchanges.

4.Quotations of share price include opening price, high price, low & closing
price.
 Annaxure
BIBLIOGRAPHY

BOOKS: NCERT, SUBHASH DEY

TEACHERS

FAMILY

INTERNET

https://www.moneycowbot.com

https://en. wikipidia.com

https://business.dictionary.com

https://sebi.gov.in