Industry Practice - BFSI

Module 1 Introduction to Financial Markets

15th February 2002

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Financial Markets


All about Money
• No complaint … is more common than that of a scarcity of money - Adam Smith (Wealth of Nations) • Money is like a sixth sense - and you can't make use of the other five without it. -- W.Somerset Maugham, English novelist • I do everything for a reason, most of the time the reason is money. -- Suzy Parker, American model and actress • Money is a stupid measure of achievement, but unfortunately it is the only universal measure we have. -- Charles Steinmetz, American electrical engineer • Money is always there, but the pockets change. -- Gertrude Stein, American writer • If a man runs after a money, he's money mad; if he keeps it, he's a capitalist; if he spends it, he's a playboy; if he doesn't get it, he's a ne'er-do-well; if he doesn't try to get it, he lacks ambition. If he gets it without working for it, he's a parasite; and if he accumulates it after a lifetime of hard work, people call him a fool who never got anything out of life. -- Vic Oliver, English author

Introduction to Money
• Introduction of Money • a wonderful instrument invented by mankind • forms of money before currency notes • What is Money?
“something acceptable and generally used as payment for goods and services” “anything that functions as a means of payment (medium of exchange), unit of accounts and store of value”

• Why coins are round ?

Introduction to Business, Economics
• Evolution of Business • evolution of business from barter to money
Transaction costs associated with barter encourages Development of money facilitates Exchange /Trading facilitates Specialization & division of labour facilitates Economic Development

• Beginning of Corporate Enterprise • proprietary to partnership to company • Need for Capital • Difference forms of Capital • Owners Vs Lenders ; Short Term Vs Long Term • Allocation of capital • Economics - the study of how society decides what gets produced and how and who gets what

What is a Company?
• Types of business entities:Proprietorship • Partnership • Company - Originated from Latin “com panis” To come together and share bread How is it formed? Coming together of Individuals is a MUST for formation of a company Company- Public Vs Private, Limited Vs unlimited liability • First company registered in 1602
•Dutch East India Company founded by Dutch Merchants survived for two centuries

• Others - Trusts, Societies, Corporations etc.

Corporate Finance Vs Personal Finance
Personal Finance
Funds are owned by self Accountability optional Negligible interest costs Negligible Time Value of money Limited sources of funds Undefined application of funds Loose control over resources No financial implications on Incorporation or Dissolution

Corporate Finance
Funds are always BORROWED Principal - Agency relationship Funds always carry cost Time value of money is critical Several sources of funds Clearly defined objective Clearly defined control Incorporation and Dissolution has financial implications

Essentials of Corporate Finance
Share Capital Debt Long/Short Govt/Pvt Retail/Wholesale


Fixed Assets Current Assets Loans Investments Project

All about Assets

Accounting Equation Assets = Liabilities + Capital

All about Balance Sheet
Balance Sheet as on dd/mm/yyyy Liabilities Assets Capital xxxxxxx Fixed Assets Profit / Loss xxxxxxx Investments Long Term Loans xxxxxxx Trade Debtors Trade Creditors xxxxxxx Cash xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx

Profit & Loss Account for the Cost of Goods Sold xxxxxx Gross Profit xxxxxx xxxxxx Administrative expense xxxxxx Selling Expenses xxxxxx Net Profit xxxxxx xxxxxx

period ended dd/mm/yyyy Sales xxxxxxx xxxxxxx xxxxxxx xxxxxxx xxxxxxx

Gross Profit Other Income

Capital from different sources

Introduction to Finance
• What is Finance?
“Finance is the art of passing currency from hand to hand until it finally disappears” - Robert W Sarnoff

“The study of how the financial systems co-ordinates and channelises the flow of funds from lenders to borrowers and vice versa and how funds are created by the financial intermediaries during the borrowing process” • Financial system consists of variety of institutions, markets and instruments that are related

Financial System
Financial Institutions Commercial Banks Insurance Companies Funds Mutual Funds Funds Provident/Pension Funds Deposits Non-banking Financial Companies Loans Shares Securities Funds Suppliers of Funds Individuals Businesses Governments Funds Demanders of Funds Individuals Businesses Securities Governments Funds Securities

Private Placement

Funds Securities Financial Markets Money Market Capital Market

Introduction to Financial Markets
• What are Financial Transactions and Financial Markets?
“Markets in which spending units trade financial claims”
Direct Finance(Stock Market, Bond Market) Vs Indirect Finance (Banks and Credit Unions)

• Functions of Financial Markets • facilitates price discovery • provide liquidity • reduces the cost of transacting - search costs & information costs

Classification of Financial Markets
• By Nature of Claims
• Debt Market • Equity Market

• By Maturity of Claims
• Money market - short term claims • Capital Market - long term claims

• By Seasoning of Claims
• Primary market - New claims • Secondary market - Outstanding claims

• By Timing of Delivery
• Cash / Spot Market • Forward / Futures Market

• By Organisation Structure
• Exchange Traded • Over the counter

• What are Third and Fourth Markets?

Classification of Financial Markets
Short Term

Medium to Long Term
Non Permanent Fund

Permanent Fund


1 Money Debt Equity Markets Markets Markets

Essentials Savings and Investments
•What is Savings ?
Savings is foregone consumption - income not spent on consumption

•What is Investment ?
Assets created with a sole purpose of increasing outputs

•Types of Investments
•Real Investments - on tangible assets •Financial Investments

•Financial Investments are created with a sole purpose of yielding financial returns •Investments may be short term / long term •Returns may be regular or cumulative •Investment may be in shares / debentures / mutual fund units •Investment is valued at Acquisition price Vs Current Price

General principles of portfolio
• What is portfolio ? • What are your portfolios? Components … savings account, life insurance, house property, precious metals like gold & silver, units of mutual funds, share and bonds. • Why Investments ? Need for it and Varieties of Instrument . • What is Return on Investment (RoI) • Real return - adjusted for inflation - Time value of money • Principles of Portfolio Management? • Risk Vs Return and correlation between both - risk/return ratio • Averaging of return and risk • Advent of mutual funds, collective investment schemes.

General principles of Risk & Return


Risk Medium



Low (0-5)

Return Medium (5-10)

High(15- )

Beginning of Share & Securities
• What is a Share ? • A share is exactly what it says it is • A share of business • Share is a share in share capital of a company • What is a Security? • Securities cover wider range of instruments and includes share, debentures, bonds • Security - different meanings - physical, financial, data …etc. • What is Stock? Is share a stock ? • Why are Stock Exchanges not called Securities exchanges ?

Essentials of Equity
• Issued at Par or Premium or Discount • Face Value is Value written on Share Certificate • NO OBLIGATION TO RETURN THE ISSUE PRICE - Long Term • NO OBLIGATION TO PAY ANY DIVIDEND - Is it Free ? • LEAST PRIORITY TO SHAREHOLDER IN CASE OF WINDING UP • RISKIEST INVESTMENT PROPOSITION • Preference Equity carries Dividends, and can be Redeemable • Further equity expanded through Bonus / Rights /Stock Split • Returns available only through trading on bourses in case of listing • Exchanged during Mergers / Acquisitions • Equity Base of a company is a MAJOR indicator of its size & operations • A large equity base facilitates raising further debt • Foreign Equity : Participation in Equity Capital by Foreign Investors

Essentials of Debt
• • • • • • • • • • • • • • Is it a dirty word? Debt has well defined obligation to return the Principal as well as the Interest amount. Default attract legal action Interest may be Fixed rate / Floating rate Debt may be secured or unsecured with additional assets Less riskier than equity Available in a wide range of options Maturity / Interest Rate / Taxability Available from a variety of sources Govt. / Pvt. / Individuals A large debt restricts prospects of raising further debt Convertible into Equity Secured Debt has highest priority in case of winding up May be listed or unlisted Debentures/Bonds/Project Loans/Lease/HP/Bills/CP/CD are all debts Interest Repayments on debt attract tax rebate

Types of financial instruments
Several categories of instruments are dealt in the market place. A share, or a bond, or a debenture issued by a company is an an acknowledgement of sums received from the investors Bonds or Debentures


Convertible Bonds/Stocks

Other Instruments

Derivative Contracts

Types of Securities
• Represents a share of the investor in the company • Dividends payable on the value of shares held, depending upon the performance of the company in a particular year • May be obtained in Primary Market (directly from the company in its public issue)or in the Secondary Market (from other shareholders) or at OTCs (Over The Counter markets) • May be held in physical paper or immobilised or dematerialised form • May be kept in custody of self, or a custodian or a depository participant or a depository • Shares may be issued as GDRs/ADRs/ADS in foreign markets • Have you heard of EDR /RDRs • Know about Globally Registered Share

Types of Securities
Bond / Debenture • Represents a loan given to the company. • Distinct from a loan or deposit. • Interest payable on the principal amount loaned to the company at predetermined rates and frequency like quarterly semi-annually or annually • Can also be issued at a discount, and repaid at face value, without explicit interest payment e.g. zero coupon bonds • Can carry a fixed or varying(floating) interest rate • Can be converted into a share if it is a convertible debenture • Convertible debentures may be partially or fully convertible • Straight / Perpetual / Putable / Callable / Zero Coupon • New Innovation - Bonus Debenture

Types of Securities
Convertible Debenture
Represents a loan given to the company which may be converted into a share at a future date The full or partial amount of the loan may be converted into a share at a conversion price - Fully / Partly Convertible Debentures (FCD/PCD) Interest payable on debenture amount so long as it is not converted into the share, thereafter, dividend is payable on the amount of shares held Preference Shares could also be convertible into equity shares.

Other Instruments
Other instruments that may be defined as securities are: - Commercial papers issued by reputed companies - Certificates of Deposit and Inter Corporate Deposits - Treasury Bills and Bonds issued by Government bodies

What is a derivative ?
• Derivative is a financial contract the value of which depends on the value of one or more underlying security, rates or indices. • The product is derived from a simple transaction in a spot market. • Product whose price is derived from the price of underlying asset. For Example: Commodity, Currency, Interest Rates, Equity, Indices. • A sophisticated financial product such as swaps, warrants, futures, options (calls and puts).

Why Derivatives?
•Rationale : Hedging of Risk For Example: Index Futures for Portfolio risk

Types of Derivative Contracts
Futures Futures are like forward contracts, but contracts are standardised and trading is centralised and hence liquid contracts. Options Options are contracts which provides the holder the right with out an obligation. Option buyer pays to the Option writer the price called premium. Options have an exercise price at which the holder can exercise his right at the expiration date.

Types of Derivative Contracts
Warrants are contracts entitling the holder to purchase additional shares at a specified price before a expiration date.Warrants are long term options that allows the purchase (sale)of common stocks, stock indices, bonds or foreign currencies.

Exchange of debt obligations between two parties for exchange of currencies of fixed to floating rate (vice versa)and some time both. This is in order to take advantage of conditions in different financial market.Transactors exchange between themselves streams of cash flows.

Types of Financial Markets
Capital Market
Equity Debt

Money Market
T-Bills Call Money ICD, CP, CD

Forex Market
Spots Forwards

Derivatives Market
Agriculture Produces, Metals, Financial futures like Interest rate, currency, indices etc

Retail Corporate Banks FI FIIs

Banks Corporate FI, FIIs

Banks Corporate FI, FIIs

Banks, FIs Corporate

Money Market - Features
• It is not one market, but collection of Markets. • Net work of large number of participants mostly by institutional players. • It is a wholesale market. • The transactions take place over phone/fax in a one-to-one communication.

Money Market

• Government Bodies • Corporate Bodies • Banks • Money Market Mutual Funds • Insurance Companies • Institutional Investors • Primary Dealers • Money Market Brokers

Instruments /securities
• Treasury Bills • Treasury Notes • Commercial Paper • Certificate of Deposit • Call Money Receipts • Inter Corporate Deposit • Commercial/Trade Bills • Repos

Participants and Products in Debt Market

Capital Markets - Features
• Characterized by issue of large number of securities to a large number of investors - retail as well as institutional • Securities are traded on the stock exchange through registered members (brokers) of the exchange • Trading in Stock Exchanges could be either in open out cry method or electronic screen based trading • Trading could be on either order based or quote based trading • Trades between brokers settled through Clearing and Settlement Organisations

Evolution and Growth of Markets
• What is a Stock Exchange?
• 1631 - Antwerp (Netherlands) • 1773 - London Stock Exchange • 1790 - Philadelphia Stock Exchange

• Why Stock Exchanges ? • What is a Market? • Primary Market Vs Secondary Market • What is a Share Certificate ? • Listing with Stock Exchange

Capital Markets

• Issuer Company • Investor • Stock Exchange • Broker Member • Clearing House/ Corporation • Clearing Member • Share Registrar/Transfer Agent • Investment Manager • Depository • Depository Participant • Custodian

Instruments / securities
•Share •Preference Share •Debenture •Bond

Other Markets
• Foreign Exchange Market - Where the currencies of various countries are traded, and their value determined. Currency dealings are either on spot or forward basis. The deals take between banks dealers. This market is either telephone or network based. • Derivatives Market - Where the transacted securities derive their value from the value of an underlying asset dealt the cash markets e.g. options, futures, forward contracts. Derivatives are either Financial Derivatives or Commodity Derivatives. • Financial Derivatives - Financial Derivative Contracts are interest futures, currency futures, futures and options on stock indices, options on stocks. • Commodities Derivatives - These contracts are futures and options on standard contracts of various commodities transacted in wholesale e.g. bullion, tea, oilseeds, metals and other products like energy, bandwidth etc.

• What is Securitisation? • What are Mortgage Backed Securities (MBS)? • What are Asset Backed Securities (ABS) ? • What are Pass Through Certificates (PTC) ?

Instruments Summary
EQUITIES/SHARES • Common Stock • Preferred Stock • Convertible Preferred Stock • Cumulative Preferred Stock • Listed Stock • OTC Stock • Warrants • Rights • Non-voting • Restricted Stock • Tracking Stock • ADR/GDR • EDR/RDR • Global Registered Share TREASURIES & AGENCIES • Treasury Bills • Treasury Note • Treasury Bonds • Agency Debentures • Ageny MTN • Agency Discount Notes • STRIPS • Stripped Interest Only • Zero Coupon Bonds • Inflation Indexed Bonds MORTGATE & ASSET BACKED SECURITIES • GNMA • FNMA • FHLMC • TBA’s(To Be Announced) • CMOs(Collaterised Mortgage Obligations) • REMICs(Real Estate Mortgage Investment Conduits CORPORATES • investment Grade • Non rated (high yield) • Convertible Bonds • Yankee Bonds • Brady Bonds • Samurai Bonds • Dragon Bonds • Euro Bonds • Adjustable Rate Securities • IOs (Interest Onlys) • POs(Principal Onlys) • ARMs (Adjustable Rate Mortgages) • Asset Backed Securities • SBA Loans (Small Business Administration)

MUNICIPAL BONDS • General Obligation Bonds • Revenue Bonds • State & Municipal Agency Bonds

Instruments Summary
DERIVATIVE PRODUCTS • Financial futures • Physical futures • Index Products • Options on futures • Options on Index Products • Options on Stock • Futures on Stock • OTC Options • Currency Options • Interest Rate Swaps • Equity Swaps • Currency Swaps • Swaptions MONEY MARKETS/REPOS • Commercial Paper • Time Deposits • Bankers Acceptances • Term CDs • Floating Rate CDs • Repos • Reverse Repos OTHER PRODUCTS • Limited Partnerships • REITs ( Real Estate Investment Trusts) • Private Placements • Variable Rate Notes • Payment in Kind Securities • Step-up Rate Securities • Perpetual Securities • Mutual Fund Units • Participatory Notes • ETFs (Exchange Traded Funds)

All at the Market
Buy Side
Institu -tional Investors Mutual, Pension, Hedge, Insurance Funds Fund Managers

NewYork Stock Exchange

Sell Side
Companies Invest ment Bankers Municipals Under corporations writers FNMA GNMA

NASDAQ Exchanges, AMEX Alternate Trading


Regional Exchanges Fixed Income Trading Systems
Instiutional/ Retail Broker Dealers

Retail Investors

Asset Managers

Fderal Reserve

OMGEO GSTPA-TFM Reuters, Bloomberg

NSCC, GSCC, MBSCC EMCC Clearing Agents

DTCC Settlement Banks Custodians

Utilities, Intermediaries, Service Providers

Key Players
Key Agencies which operate in financial services market
Company Investor Exchanges

Investment Manager

Broker/ Dealers


Clearing Corporation


Depository Participant

Key Players
Company/ Issuer
The corporate entity that issues securities, which are traded on the stock exchange e.g. Reliance Industries Ltd.., Proctor & Gamble, IBM. One company may have its securities listed on many exchanges

An individual or a company which buys and sells securities with an investment objective. An individual , a company, a corporate entity, or a group of individuals who buy and sell securities. An individual investor could be a retail client, and institutional investors could be an Investment Manager, Mutual Fund, Bank, Companies, that invest in securities either on behalf of their clients or on their own account e.g. UTI (mutual fund), Axa Investment Managers (Investment Manager).

Key Players
•A platform for the buyer and the seller to trade in the securities e.g. • New York Stock Exchange formed in 1792 London Stock Exchange, NASDAQ, Chicago Mercantile Exchange, Chicago Board Of Trade. In India - NSE, BSE •Performs various roles such as: • Admission of securities for trading - listing • Admission of members who can trade in the securities • Defining market segments like Equity / Debt / Derivative Market segment • Defining market indices like Sensex, Dow Jones, Nifty • Defining price range for trading • Monitoring the trading activities - surveillance on day to day basis. • Regulating the activities of the members of the exchange.

Key Players
Investment Manager
The agency which acts on behalf of its clients, and buys or sells securities through brokers, on various stock exchanges e.g. Alliance Capital Management. Also provides value added services like portfolio management to its clients May operate in various instruments, markets regions of the world May have an identified set of brokers and custodians through which it deals.

Brokers / Dealers
A member of a given stock exchange, authorised to trade only on that exchange. Can be a member of multiple exchanges at a time. Can trade on multiple exchanges at a time. Can be an individual or a corporate entity like Merrill Lynch, MSDW. Only members can trade on the exchange investors cannot trade directly If a member gives both buy and sell quotes for a given security, he is called a market maker in that security. If he deals on his own account, he is called dealers Has final obligation to honour the trades done by him on the exchange

Key Players
• The agency which keeps custody of physical and electronic holdings on behalf of their clients (investors).e.g. HSBC, ABN AMRO Bank • They also provide additional services like cash management, accounting, taxation, reporting and effecting corporate actions on the clients’ holdings They also execute settlement instructions received from the client or client’s broker or investment manager • They may operate across different countries and act as Global Custodians As global custodians, they act through central security depositories, international central security depositories and local agents As Local Custodian or Local Agent they represent the global custodians in the domestic market

Key Players
Clearing Corporation
The agency which keeps track of buy and sell trades done by the members e.g. National Securities Clearing Corporation (NSCCL) It calculates the obligations for the member, for a given trading period May also impose and collect margins on behalf of the exchange on outstanding positions of the members Ensures the settlement of the trades done on the stock exchange May act as a clearing and settlement body for one or more stock exchanges like NSCCL in USA. May also act as Central Counterparties in case obligations are netted.

Key Players
The agency which provides services like holding of electronic shareholding against immobilisation / dematerialisation of securities, rematerialisation of securities, lending and pledging of electronic shares e.g. National Securities Depository Ltd (NSDL), SIS Sega Intersettle

Depository Participant
The intermediary registered with a depository, which acts as a channel for investors for opening accounts, maintaining electronic holdings and carrying out transactions with the depository e.g. Credit Lyonnais, HDFC Bank Keeps the electronic holdings on behalf of the investor An investor may keep holdings with one or more DPs Offers services like dematerialisation, rematerialisation, execution of client instructions for debit / credit of securities from their accounts

Players in the Game of Investments
•Market Place •Stock Exchanges, Derivative Exchanges etc •Alternate Trading Systems (ATS) •Electronic Communications Networks (ECN) •Market Utilities •Clearing and Settlement Organisations and Central Counterparties (CCPs) •Central Securities Depositories (CSDs) •Matching Utilities or ETCs •Market Data Providers •Service Providers •Credit Rating Institutions •Market analysts, Investment Advisers

Players in the Game of Investments
•Regulatory Bodies •Retail Vs Institutional investors. •Institutional Investors •Hedge Funds •Pension Funds •Insurance Funds •Investment Companies & Mutual Funds, •Corporate Entities - Public Ltd, Private Ltd, LLPs, Corporations, Societies, Trusts •Financial Institutions - State level, Central level, Foreign •Government Bodies - State, Municipal and Central level •Banks - Private, Public, Cooperative, •Wholesale Vs Retail •Universal Banks performing various roles

Players in the Game of Investments
•Intermediaries • Investment Bankers •Merchant Bankers, Lead Managers, Underwriters • Registrars and Transfer Agents • Custodians. - Global & Sub Custodians • Asset Management Companies - Investment Managers, Asset Managers • Brokers/Security Dealers - servicing retail / institutional clients. •What is difference between Brokers and Dealers ? •Discount Brokers Vs Full Service Firms, Online Brokers •Correspondents •Registered Representatives / Sub-Brokers.


What is an Index?
• Index is a statistical yardstick expressed in terms of percentages of a base year or years. For instance, the NYSE Composite Index of all NYSE common stocks is based on year-end 1965 as 50. Index compares the current price with price of the base year of the shares of the companies comprised in the index. Such comparison of prices is through market capitalization of the company. • Market Capitalisation of the company = Number of shares * Price of the share. • Popular Indices • Dow Jones Industrial Average, S & P 500, NASDAQ Composite Hang Seng in Hongkong • FTSE in London • NIKKEI in Japan • SENSEX of Bombay Stock Exchange in India • NSE NIFTY of National Stock Exchange of India.

Security / Party Identification Standard
• What is a Security/Asset Symbol ? • What is an ISIN? • What is ISO 6166 standard? • What is a CUSIP? • What is a SEDOL? • What is a BIC?

Security Identification(SIN): Security Type/Classification(CFI): Bank Identifier Code(BIC): Exchange/Market Code(MIC): Country: Currency: Data Field Definitions: ISO 6166:2001 ISO 10962:2001 ISO 9362 :1994 ISO 10383:1992 ISO 3166 :1997/8 ISO 4217:1995 ISO 15022

CFI Standard
The CFI consists of six alphabetical characters: The first character indicates the highest level of classification (categories). Equities (E) Debt instruments (D) Entitlements (Rights) (R) Options (O) Futures (F) Others/Miscellaneous (M) The second character indicates specific groups within each category:Groups e.g. for equities: Shares(ES) Preferred shares(EP) Convertible preferred shares Units, i.e. unit trusts/mutual funds etc.(EU) Others(EM)

The third to sixth character indicate the most important attributes to each group: Attributes e.g. for equities: Voting right; Ownership / transfer restrictions; Payment status ; Form

Structure of Indian Financial Markets
GOI Ministry of Finance GOI Dept of Co. Affairs



Registrar of Companies

Stock Exchanges

Clearing Corporations


Mutual Funds



Broker Dealers

Merchant Bankers

Depository Participants

Registrar & Transfer Agents

Primary Dealers

Regulation and Legal Aspects
• Companies Act, 1956
•company registration and management

• Securities Contract Regulation Act,1957
• stock exchange registration & management, securities contracts etc

• Foreign Exchange Management Act
•regulation of foreign currency transactions, regulation of dealers

• Banking Regulation Act
•registrations and regulation of banks

• Sebi Act, 1992
•establishment of Sebi and its powers and regulations of market intermediaries (Capital Issues Control Act Repealed)

• Every Act has a set of rules made thereunder • Regulations for various Intermediaries

Ownership Structure Indian Capital Market institutions

Banks and Financial Institutions

Broker Members






BSE Clearing Corp

Overview of the Indian Stock Market
• The first Indian Stock Exchange is formed in 1875 in Bombay under a Banyan Tree situated at what is today called DALAL STREET. It is now called The Stock Exchange, Mumbai or popularly as BSE. • 22 Stock Exchanges exist in India. Major Centers are Calcutta, Delhi, Ahmedabad, Chennai, Bangalore, Kanpur, Pune, Ludhiana. • OTCEI - Over The Counter Exchange of India is established in 1992 to meet the needs of smaller companies.Is the first Screen Based Trading System in India. • NSE - National Stock Exchange of India is established in 1994 which popularised the Screen Based Trading through V Sat based Network of Computer Terminals. • NSE and BSE contribute more than 70% business in the Indian Market. • National Securities Depository Limited (NSDL) and Central Depository for Securities Limited (CDSL) are two Depositories.

Overview of the World Markets
•Worlds Biggest Markets

•Various Types of Markets in the Exchanges. Ex:
• NASDAQ : National Market, Small Order Execution System, NASDAQ International, Small Cap Market, OTC Bulletin Board

Structure of US Securities Markets



Stock Exchanges


Broker Dealers Registered Representatives

State Securities Commissions

Keynes and the Market
JOHN MAYNAR KEYNES - writes in 1935

“It is usually agreed that casinos should, in the public interest, be in accessible and expensive. And perhaps the same is true of stock exchanges.”

Adam Smith and the Market
ADAM SMITH - considered as father of Economics remarks in his book Game of investment on Stock Market as under: “The market is a beautiful woman endlessly fascinating, always changing, always mystifying. This market is not a science. It is an art. You have to study behaviour patterns. The market is a crowd , is like a woman’s mind. If you observe her for long, you begin to see little trick, little nervous movements. You decide by yourself being part of the crowd, where you stand in the game of investment.”

All about Investing
• It is not the return on my investment that I am concerned about; it is the return of my investment. -- Will Rogers • There are only two emotions in Wall Street - fear and greed. -- William M. LeFevre, Jr. •Choose stocks the way porcupines make love - very -- Anonymous carefully.

•The safest way to double your money is to fold it over and put it in your pocket. -- Frank McKinney Hubbard • October. This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February. -- Mark Twain

Welcome to the Dalal Street !

Thank you !

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