REPORT ON

STOCK EXCHANGE

SUBMITTED BY
Md. Nazim Qureshi (2K21/BBA/86)
Pratham Arora (2K21/BBA/105)
Stuti Aggarwal (2K21/BBA/148)

SUBMITTED TO
Ms. Ankita Garg
 CERTIFICATE
This is to certify that Md. Nazim Qureshi (2K21/BBA/86),
Pratham Arora (2K21/BBA/105), and Stuti Aggarwal
(2K21/BBA/148) students of University School of Management
and Entrepreneurship, Delhi Technological University have
successfully completed their project work as prescribed by the
University in the innovative project requirement of Bachelors in
Business Administration (BBA) for the 2nd Semester.

The project work is titled as ‘Report on STOCK EXCHANGE’.

Project Guide and Mentor

Ms. Ankita Garg
Financial Markets & Institution
Delhi Technological University
 ACKNOWLEDGEMENT

We, the students of University School of Management and

Entrepreneurship, Delhi Technological University will be using
this opportunity to express our Gratitude to everyone who
supported us throughout the course of this report.

We are sincerely grateful to our Mentor Ms. Ankita Garg who

guided us for the completion of this report. We would also like
to thank our Mentor for providing us with the knowledge about
the critical aspects of the topics related to this report and helping
us whenever needed.
 CONTENT

Sr. No. Topic

1. Stock Exchange
● About
● Working
● Stock Exchange around the world
● Purpose
2. Bombay Stock Exchange
● About
● History
● Working
● Timeline
3. National Stock Exchange
● About
● History
● Working
● Timeline
4. NASDAQ
● About
● History
● Working
● Market Tiers
5. BSE v/s NSE v/s NASDAQ
6. Indices of INDIAN Stock Exchange
7. References
 STOCK EXCHANGE

ABOUT
A stock exchange is a stock market where you may buy and sell equities. Investors
and businesses can buy and sell shares in various companies in a regulated physical
or, more recently, computerized environment.

WORKING OF STOCK EXCHANGE

Stockholders will seek to sell their stakes. If there was no stock exchange, these
entrepreneurs would have to sell their shares to friends, family, or neighbors. In
what is known as the "secondary market," the exchange makes it simpler to find a
buyer. When an investor trades on the stock market, it is nearly certain that he or
she will never meet the other party in the transaction. It may be a retired instructor
from a different nation. Hedge funds, multibillion-dollar insurance firms,
publicly-traded mutual funds, and multibillion-dollar insurance firms are all viable
options. Traders who believe a company will do well bid higher, while those who
feel it will perform poorly bid lower, similar to how an auction works. Buyers want
the best price they can get so they can sell later at a profit, whereas sellers want the
best price they can get.

STOCK EXCHANGES AROUND THE WORLD

STOCK EXCHANGE NAME LOCATION

New York Stock Exchange New York City

NASDAQ New York City

NSE India Ltd. Mumbai, India

Tokyo Stock Exchange / Japan Exchange Tokyo, Japan

Group

Shanghai Stock Exchange Shanghai, China

Hong Kong Exchange Hong Kong

Euronext France, Portugal, Netherlands, Belgium

Shenzhen Stock Exchange Shenzhen, China

London Stock Exchange Group UK, Italy

TMX Group Toronto, Canada

BSE India Ltd. Mumbai, India

PURPOSE
Stock exchanges act as economic actors by enabling trade and sharing information.
The following are some of the ways in which exchanges might be beneficial:
1. Raising Capital: Companies can raise funding for operations and expansion
initiatives by issuing additional shares or making initial public offerings (IPOs).
Businesses will have greater opportunity to expand as a result of this.
2. Corporate Governance: Companies that are publicly traded on a stock
exchange are expected to follow regulatory reporting requirements. This includes
needing to reveal their financial records and profitability to their shareholders on a
regular and public basis. The acts of a company's management are often
scrutinized by the public, and these actions have a direct impact on the company's
worth. Public reporting ensures that management makes decisions in the
company's and shareholders' best interests, resulting in more efficient
decision-making.
3. Economic Efficiency: Managerial efficiency is improved, and economic
efficiency is improved through capital allocation, thanks to exchanges. Individuals
have the option of investing their money rather than simply saving it in the stock
market. This means that money that was previously underutilized is now put to
good use, resulting in a more efficient economy. Furthermore, exchanges provide
liquidity by making it simple to sell one's assets. The stock exchange supports an
efficient market by allowing investors to actively decide the worth of firms
through supply and demand by providing liquidity and real-time pricing
information on company shares.
 BOMBAY STOCK EXCHANGE (BSE)

ABOUT
The Bombay Stock Market, or BSE, was formed in 1875 as the Native Share and
Stock Brokers' Association and is India's oldest and largest stock exchange. The
BSE, situated in Mumbai, India, is one of the world's biggest stock exchanges,
alongside the New York Stock Exchange (NYSE), London Stock Exchange, and
Shanghai Stock Exchange. It lists over 6,000 companies.
The BSE has assisted the growth of India's capital markets, notably the retail debt
market, as well as the corporate sector. The BSE is Asia's first stock exchange,
featuring a platform for small and medium-sized firms to trade stocks. BSE has
expanded its capital market services to include clearing, settlement, and risk
management, among other things.

HISTORY
In 1875, the BSE was created in Mumbai as the Native Share and Stockbroker's
Association. In the 1850s, traders and brokers gathered beneath a Banyan Tree near
Mumbai Town Hall. There were just five brokers available at the time. People
relocated from Horniman Circle to Esplanade Road, and so on, as the population
developed. Finally, in 1874, the society was given a permanent address near the
town hall and became a legal entity.
BSE operated out of the town hall until 1928. The organization bought the existing
site in 1928 and built a facility on it later that year. The structure was completed in
the year 1930. The street on which the building stood was named Dalal Street.
The Securities Contracts Regulation Act of 1957 was used by the Indian
government to recognise the BSE. The current structure was built in the 1970s and
was inhabited by the stock exchange in 1980. Following the death of BSE
chairman Sir Phiroze Jamshedji Jeejeebhoy, the skyscraper was renamed Sir
Phiroze Jamshedji Jeejeebhoy Towers.
The Bombay Stock Exchange today has about 6000 companies listed, making it
one of the largest stock exchanges in the world. Some of the larger exchanges than
the BSE are the New York Stock Exchange, NASDAQ, and the London Stock
Exchange.
BSE is widely regarded as the "founder" of Indian capital markets, which assisted
the expansion of the country's corporate sector. The BSE is not just India's but also
Asia's first stock exchange. Small and medium-sized firms can also trade stocks on
the BSE's equities trading platform (Small and Medium Enterprise). The BSE
offers a variety of services, including risk management, clearing, and settlement.

THE WORKING OF BSE

The BSE transitioned from an open floor to an electronic trading system in 1995.
In the United States alone, there are more than a dozen electronic exchanges, the
most well-known of which are the New York Stock Exchange (NYSE) and
NASDAQ.
In the financial business, electronic trading systems have essentially supplanted
traditional open-outcry trading methods because they provide fewer errors, faster
execution, and more efficiency. Stocks, stock futures, stock options, index futures,
index options, and weekly options are among the BSE's securities.
The Sensex, a benchmark index comprising 30 of the BSE's largest and most
frequently traded equities across 12 categories, measures the BSE's overall
performance.
The Sensex is India's oldest stock index, having been established in 1986. The BSE
30 index, sometimes known as the "BSE 30," is a wide representation of the Indian
stock market.
TIMELINE
 NATIONAL STOCK EXCHANGE (NSE)

ABOUT
The major stock exchange in India is the National Stock Exchange of India
Limited (NSE). It was founded in 1992 on the suggestion of the Indian
government's High-Powered Study Group, which was formed to identify methods
to make stock market participation easier and more accessible to all interested
parties. In 1994, the NSE became the first stock exchange in India to start
electronic trading. The National Stock Exchange of India Limited is a venue where
businesses may raise funds. Shares, currencies, debt, and mutual fund units can all
be traded on the platform. Initial public offerings (IPOs), Indian Depository
Receipts (IDRs), and debt issuances can all be done on the NSE platform by
foreign companies looking to raise money in India. There are other options for
clearing and settlement. Investors can trade stocks, currencies, debt, and mutual
fund units on the site. Initial public offerings (IPOs), Indian Depository Receipts
(IDRs), and debt issuances are all options for foreign companies using the NSE
platform to raise cash in India. The NSE provides clearing and settlement services
as well.

HISTORY
The National Stock Exchange was founded in 1992 with the goal of increasing the
transparency of India's stock market. Rather than restricting trading membership to
a restricted number of brokers, the NSE made sure that anybody who was
qualified, experienced, and satisfied with the minimal financial requirements could
participate. The exchange began as a tax-paying company in 1992, while P. V.
Narasimha Rao was Prime Minister and Manmohan Singh was Finance Minister,
and was recognized as a stock exchange in 1993 under the Securities Contracts
(Regulation) Act, 1956. In June 1994, the NSE launched its Wholesale Debt
Market (WDM) section. The NSE's capital market (equities) sector launched in
November 1994, followed by the derivatives part in June 2000.
Stocks, equity derivatives, debt, commodities derivatives, and currency derivatives
are all traded, cleared, and settled on the NSE. It was India's first computerized
trading exchange, bringing together the country's entire investor base. Over 2000
cities in India are served by NSE's 2500 VSATs and 3000 leased lines. The NSE
created the National Securities Depository Limited (NSDL) to allow investors to
safely store and transfer their shares and bonds online. An investor can keep and
trade a single share or bond. This not only made it simpler to hold financial
instruments but also eliminated the need for paper certificates, which resulted in a
significant reduction in the number of fake or phony certificates and fraudulent
transactions that plagued the Indian stock market earlier. The transparency, cheaper
transaction fees, and efficiency of the NSE, together with the security of the
NSDL, made the Indian stock market much more appealing to domestic and global
investors.

THE WORKING OF NSE

India's National Stock Exchange Market orders, which are matched by trading
computers, are used for limited trading. The trading method does not include
market makers or specialists. When an investor places a market order, the trading
computer assigns it a unique number and immediately matches it with a limit order,
ensuring that both sellers and buyers stay anonymous. If no match is found, the
order is added to a list of orders that will be matched in sequence according to
price-time precedence. Orders with the best price are prioritized, while orders with
the same price are prioritized over earlier orders.
Investors benefit from the order-driven exchange market since it shows all sell and
purchase orders in the system. Customers may be offered online trading services by
brokers who place orders in the trading system. Except for NSE holidays, the
exchange market is open five days a week, from Monday to Friday.
TIMELINE
 NASDAQ

ABOUT
NASDAQ is a global electronic marketplace that acts as the United States'
benchmark index for technology stocks. The National Association of Securities
Dealers (NASD) established NASDAQ in 1971 to allow investors to trade
securities in a rapid, automated, and transparent way. The NASDAQ Composite, a
stock market index that includes Apple, Google, Microsoft, Oracle, Amazon, Intel,
and Amgen, among others, is now known as "NASDAQ."

HISTORY
The National Association of Securities Dealers founded the NASDAQ in New
York City in 1971. It was established to become the world's first electronic stock
exchange. While it initially did not allow for electronic trading, it did provide
automated stock quotes. Securities brokers hated the idea since it helped to
minimize the bid-ask spread.
The NASDAQ quickly established itself as the dominant exchange for most large
OTC transactions. In 1998, the NASDAQ became the first exchange to provide
online trading. NASDAQ Inc. is expanding its business outside the stock exchange,
with an emphasis on financial technologies.

WORKING OF NASDAQ
The Nasdaq was created to deliver automated quotations from the start. In the years
after its founding, it consistently accommodated over-the-counter (OTC) trading, to
the point that Nasdaq became synonymous with OTC and was commonly referred
to as an OTC market by the media and trade periodicals. Later, automated trading
systems were built that could generate transaction and volume data. In addition, it
was the first exchange to provide electronic trading.
Investors on Nasdaq's computerized exchanges conduct all transactions through
dealers, sometimes known as "market makers," rather than through auctions.

MARKET TIERS
The Nasdaq Stock Market has three different market tiers:
 1. The Capital Market (NASDAQ-CM small cap market) is an equity
exchange for companies having a market value of less than $1 billion. The
listing requirements for such "small size" organizations are less stringent
than those for other Nasdaq platforms, which list much bigger companies
with far higher market capitalization.
2. Nasdaq Global Market equities form the Nasdaq Global Market (NASDAQ-GM
mid cap). The Global Market is composed of 1,450 stocks that meet Nasdaq's
strict financial, liquidity, and corporate governance standards. The Global Market
has a lower level of exclusivity than the Global Select Market.
3. The Global Select Market (NASDAQ-GS large cap) is a market
capitalization-weighted index that measures the Global Select Market Composite
and is composed of both domestic and international companies. The Global Select
Market consists of 1,200 stocks that meet Nasdaq's strict financial, liquidity, and
corporate governance criteria. In comparison to the Global Market, the Global
Select Market provides a higher level of exclusivity. Every October, the Nasdaq
Listing Qualifications Department evaluates the Global Market Composite to see
whether any of its stocks have met the requirements to be listed on the Global
Select Market.

BSE v/s NSE v/s NASDAQ

NSE BSE NASDAQ

Founded in 1992. Founded in 1875. Founded in 1971.

Located in Mumbai, Located on the famous Located in New York.

Maharashtra. Dalal Street in Mumbai as
well.

In terms of liquidity, NSE Liquidity is lower than It has midpoint liquidity for
edges past BSE as the NSE. a large portion of the day in
volumes traded in NSE are high-volume securities.
significantly higher in
comparison with BSE.

Trading speed is lower than BSE is one of the fastest It takes 4-6 weeks to
that of BSE. stock exchange in terms of process a listing application
trading speed which was for trade.
 measured to be 6
microseconds in 2015.

NSE ranks at 11th place in The BSE is at 10th position NASDAQ ranks at 2nd
the global stock market in the global stock market place in the global stock
rankings. rankings. market rankings.

The NSE has The BSE has The NASDAQ has 3,554
approximately 1700 approximately 6000 companies listed on it.
companies listed on it. companies listed on it.

The benchmark index The benchmark index The benchmark index

NIFTY50 gives top 50 SENSEX30 gives top 30 SENSEX30 gives 3000
companies’ numbers. companies’ numbers. companies’ numbers.

In 1993, the National In 1957, Bombay Security In 1971, NASDAQ market

Security Market was market was recognized as was recognized as an
recognized as an exchange. an exchange. exchange.

NSE fosters trading in BSE also helps to It does not have a physical
equity, debts and currency encourage trading in debt trading floor
derivatives. instruments, mutual funds
and currencies along with
equity and debts.

The Director and CEO is The Manager and CEO is The Director and CEO is
Ms. Chitra Ramakrishna. Mr. Ashish Kumar Mr. Michael Splinter
Chauhan.

INDICES of STOCK EXCHANGE

NSE
● BROAD MARKET INDICES
○ NIFTY 50: The NIFTY 50 is the flagship index of the National Stock Exchange of
India Ltd. The Index is based on the performance of a portfolio of blue-chip
enterprises, which are India's largest and most liquid shares. Because it
incorporates 50 of the roughly 1600 firms traded (listed and traded, and not listed
but authorized to trade) on NSE, it is a realistic representation of the Indian stock
market, accounting for around 65 percent of its float-adjusted market
capitalization. The NIFTY 50 index reflects the key sectors of the Indian economy
 and offers investment managers a single, efficient portfolio that gives them
exposure to the Indian market. The Index has been traded since April 1996, and it
is ideally suited for benchmarking index funds, and index-based derivatives. The
NIFTY 50 is owned and managed by NSE Indices Limited (formerly known as
India Index Services & Products Limited-IISL), India's first specialized firm
focused on an index as a major product. Other broad market indices are
NiftyNext50, Nifty100/200/500, NiftyMidcap 50/100/150,
NiftySMLCAP50/100/250, NiftyMIDSML400 and IndiaVIX.

○ Sectoral Indices: Nifty Bank, Nifty Auto, Nifty Fin Service, Nifty FMCG, Nifty
IT, Nifty Media, Nifty Metal, Nifty Pharma, Nifty PSU Bank, Nifty PVT Bank,
Nifty Realty.
○ Thematic Indices: Nifty Commodities, Nifty Consumption, Nifty CPSE, Nifty,
Energy, Nifty Infra, Nifty100 LIQUID 15, Nifty MID LIQ 15, Nifty MNC, Nifty
PSE, Nifty SERVICE SECTOR.
○ Fixed Income Indices: Nifty GS 8 13YR, Nifty GS 10YR, Nifty GS 10YR CLN,
Nifty GS 11 15YR, Nifty GS, 15 YR PLUS, Nifty GS COMPOSITE

BSE
● REAL TIME INDICES
○ BSE Sensex: The BSE SENSEX (also known as the S&P Bombay Stock
Exchange Sensitive Index or simply SENSEX) is a free-float market index
comprising 30 well-established and financially stable Bombay Stock Exchange
companies. The index's 30 businesses reflect the many industrial sectors of the
Indian economy and include some of the largest and most actively traded
corporations on the stock exchange. Since January 1, 1986, the S&P BSE
 SENSEX has been generally recognized as the pulse of India's financial markets.
The SENSEX was assigned a base value of 100 and a base year of 1978–79 on
April 1, 1979.

○ Other Real Time Indices: Sensex 50, Sensex Next 50, BSE 100, Bharat 22 Index,
BSE Mid Cap, BSE Small Cap, BSE 200, BSE 150 Mid Cap Index, BSE 250
Small Cap Index, BSE 400 Mid Small Cap Index, BSE 500, BSE All Cap, BSE
Small Cap Select Index, BSE Large Cap, BSE Mid Cap Select Index, BSE 100
Large Cap TMC Index.
● END OF DAY INCIDES: BSE Sensex Next 50 TMC, BSE Large Mid Cap, BSE Mid
Small Cap, BSE 250 Large Mid Cap 65:35 Index, BSE Sensex 50 TMC.

NASDAQ
The Nasdaq Composite is a stock market index that tracks all of the stocks listed on the
Nasdaq stock exchange. The index will include the following items:
● The Nasdaq exchange is the sole place where a stock may be exchanged.
● The stock must be common stock of a single company, preferred stocks,
exchange-traded funds (ETFs), and other types of securities are not permitted.
● Limited partnership shares, American depositary receipts (ADRs), and real estate
investment trusts (REITs) are all eligible for participation.
That is why the Nasdaq Composite has so many stocks and the index's number of
businesses changes so often. The index represents the whole Nasdaq stock market, not
just the top corporations.
The Nasdaq Composite, along with the Dow Jones Industrial Average and the S&P 500,
is one of the most widely followed stock indexes in the United States, and it is usually
cited by market experts as one of the three "headline" indices.
The Nasdaq Composite Index is often seen as a strong indicator of how well the tech
industry is performing, given the Nasdaq contains a big number of technology
companies, particularly those that are young and fast-growing.
CONCLUSION
After doing the background research on all 3 stock exchanges ,i.e., NSE, BSE, and
NASDAQ, we came to the conclusion that the stock market is growing vigorously as all
of them traveled a long distance, i.e., sitting under a tree to 6,000 companies listed in
BSE, getting recognised by SEBI to launch NSE IFSC by NSE, and founding NASDAQ
by NASD to rank at 2nd place in the global stock market. The stock market plays an
important role in the global economy as it affects each and every person taking part in it,
and as we know that the stock market is going digital through many platforms, so it’s
becoming quite easier to take part in it and it is more likely affecting the younger
generation. If a person is interested in taking part in NSE or BSE, then he can take part in
any stock exchange as there is a kind of no huge difference between the two. The most
important thing is that not only NSE, BSE, and NASDAQ but the whole share market run
on 3 pillars, i.e., brokers, investors, and firms as it is a place where an investor comes to
invest his money in a firm and the broker plays the middleman role between the two.

REFERENCES
1. Investopedia: Stock Exchange.
2. NSE: Wikipedia
3. BSE: Wikipedia
4. Tax Guru
5. NSE India
6. Trade Brains
7. BSE India
8. Nasdaq.com
9. fool.com