Stock Market

High loss, High Gain

What is Stock Market?
A stock market, equity market or share market is the aggregation of
buyers and sellers of stocks, 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. Examples of the latter include shares of private
companies which are sold to investors through equity crowdfunding platforms.
Functions of Stock Market

 Fair Dealing in Securities Transactions

 Efficient Price Discovery
 Liquidity Maintenance
 Security and Validity of Transactions
 Support All Eligible Types of Participants
 Investor Protection
 Facilitate transfer of ownership
Demat and Trading Account

 What is a Demat Account?

Demat is simply an account that allows you to hold your shares
in an electronic format. A demat account converts the physical
shares into an electronic form, therefore dematerializing it.
 What is a Trading Account?
To conduct your stock trading activities you require a trading
account. This is because when a company lists its shares in the
stock market you can trade the same on an electronic system
through a special account known as a trading account.
 Types of shares
 Equity shares
Equity shares are also known as ordinary shares. They are the form of fractional or part
ownership in which the shareholder, as a fractional owner, takes the maximum business risk.
BSE(Bombay Stock Exchange) and NSE(National Stock Exchange) are the two
equity exchange of India.
 Commodity market shares
Commodity market is a market that trades in the primary economic sector rather than
manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such
as gold and oil. MCX(Multi Commodity Exchange) and NCDEX (National
Commodity And Derivative Exchange) are the two commodity trading exchange of India.
Stock Exchanges in the World
 The oldest stock exchange in the world.
Amsterdam Stock Exchange
I. Founded: 1602
II. Capitalization: 959,975.345 EUR MN
III.Listed Companies: 133
 The largest Stock Exchange in the world.
New York Stock Exchange
I. Founded: 1792
II. Capitalization: $22.9 trillion
III.Listed Companies: 2,400
Stock Exchanges
In India
There are total of 21 stock exchanges in India.
Out of them Two largest Stock Exchanges are:
 Bombay Stock Exchange (BSE)
 National Stock Exchange (NSE)
Bombay Stock Exchanges (BSE)
 Founded: 1875
 Capitalization: US$2.2 trillion
 No. of listings: 5,439
 Index: Sensex
 Constituents: 30
 Sensex: 38,337.01
-560.45(1.44%)
National Stock Exchange (NSE)
 Founded: 1992
 Capitalization: US$2.27 trillion
 No. of listings: 1952
 Index: Nifty
 Constituents: 30
 Nifty: 11,419.25
-177.65(1.53%)
 Benefits
 Higher Liquidity.
 Versatility.
 Higher Returns in Shorter Periods of Time.
 Acquire Ownership and Right to Vote.
 Regulatory Environment and Framework.
 Convenience.
Disadvantages
Return on Investment
High Volatility
Not Suitable to Provide Retirement Income
Large Number of Choices
Risks of Ownership
Subject to Higher Risk