Stocks Exchange

Stock/Share/Equity
 A type of security that signifies ownership in a
corporation and represents a claim on part of the
corporation's assets and earnings.
 A holder of stock has a claim to a part of the

corporation's assets and earnings.

 a shareholder is an owner of a company.
 Ownership is determined by the number of shares a

person owns relative to the number of outstanding

shares.
Stock Exchange
 Stock exchange is a form of exchange which provides
services for stock brokers and traders to buy or sell
stocks, bonds, and other securities.
 Provide facilities for issue and redemption of securities

and other financial instruments, and capital events

including the payment of income and dividends.
Stock Market Index
 Measurement of the value of a section of the stock
market.
 Computed from the prices of selected stocks (typically

a weighted average).
 Tool used by investors and financial managers to

describe the market.

 To compare the return on specific investments.
Major stock exchanges(Globally)
 New York Stock Exchange
 NASDAQ
 Japan Exchange Group
 Euronext
 London Stock Exchange Group
Major stock exchanges (India)
 Bombay Stock Exchange
 National Stock Exchange of India
 Multi Commodity Exchange
BSE : Introduction
 The first and largest securities market in India, the Bombay Stock
Exchange (BSE) was established in 1875 as the Native Share and
Stock Brokers' Association.
 Based in Mumbai, India, the BSE lists over 5,000 companies.
 One of the largest exchanges in the world.
 The BSE has helped to develop the
◦ country's capital markets,
◦ retail debt market,
◦ Indian corporate sector.
 Securities listed by the BSE include stocks, stock futures, stock
options, index futures, index options and weekly options.
 The BSE's overall performance is measured by the Sensex, an index of
30 well-established and financially sound companies listed on
Bombay Stock Exchange.
 The BSE SENSEX (SENSitive indEX), also called the "BSE 30",
is a widely used market index in India and Asia.
NSE : Introduction
 The National Stock Exchange of India was promoted by
leading Financial institutions at the behest of the
Government of India,
 Was incorporated in November 1992 as a tax-paying
company.
 In April 1993, it was recognized as a stock exchange under
the Securities Contracts (Regulation) Act, 1956.
 NSE commenced operations in the Wholesale Debt Market
 (WDM) segment in June 1994.
 The Capital market (Equities) segment of the NSE
commenced operations in November 1994,
 Operations in the Derivatives segment commenced in June
2000.
CNX Nifty
 NSE's flagship index, the CNX Nifty, is used extensively by
investors in India and around the world to take exposure to the
Indian equities market.
 The CNX Nifty index is a free float market capitalisation
weighted index.
 Nifty is owned and managed by India Index Services and
Products (IISL), which is a wholly owned subsidiary of the
NSE Strategic Investment Corporation Limited.
 The NSE's key index is the S&P CNX Nifty, known as the
NSE NIFTY (National Stock Exchange Fifty), an index of
fifty major stocks weighted by market capitalization.
Hours of operation

Session Timing
Beginning of the Day Session 8:00 - 9:00
pre-open trading session 9:00 - 9:15
Trading Session 9:15 - 15:30
Position Transfer Session 15:30 - 15:50
Closing Session 15:50 - 16:05
Option Exercise Session 16:05 - 16:35
Margin Session 16:35 - 16:50
Query Session 16:50 - 17:35
End of Day Session 17:30

The hours of operation for the BSE quoted above are stated in terms the local time
(i.e. GMT +5:30) in Mumbai , India. BSE's normal trading sessions are on all days of
the week except Saturdays, Sundays and holidays declared by the Exchange in
advance.
A.

Top Brokers
HDFC Securities Ltd.
ICICI Securities
Bonanza Portfolio Ltd.
Motilal Oswal Group
Angel Broking
India Infoline
Share khan
India Bulls
Religare
Importance of Stock Market
 Acts as sources for companies to raise money.
 Clearinghouse for each transaction
 Facilitates economic growth
 Indicator of share prices and other assets of a

company
 Role and Functions Of Stock Market

 Established for the purpose of assisting, regulating and controlling

business of buying, selling and dealing in securities
 Provides a market for the trading of securities to individuals and
organizations seeking to invest their saving or excess funds through
the purchase of securities
 Provides a physical location for buying and selling securities that
have been listed for trading on that exchange
 Establishes rules for fair trading practices and regulates the trading
activities of its members according to those rules
 Ensure transparency by providing information to the investor and
helps in intelligent decision making about the particular stock
based on information
Benefits of Listing
 Visibility
 Market support
 Investors confidence
 Increased demand for products and services
 Overall increase in profitability
Delisting

Stock exchange can delist companies for a

number of reasons including :-
•Merger with another company
•Solvency problems
•Failure to comply with exchange rules
Desirable Characteristics of a stock market

Availability of information Market efficiency

Prices react quickly to new information
 Liquidity

 Small price fluctuations

Financing the exchange
 Transaction fees paid by members for each order
executed
 Fees paid by firms when their securities are originally
listed
 Annual fees by firms
 Entrance fees from new members
 Sale of historic trading and market information
Rights of investor
 To participate and to vote in annual general meetings and right
to receive a notice for them or their proxy to attend the meeting.
 To receive dividend, right shares , bonus offers , from the
company , after there approval of the board.
 To receive and inspect minutes of the meeting.
 To receive balance sheet , P&L account , auditors report , and
directors report.
 To receive allotment letters and share certificates.
 To requisition an extra ordinary general meeting.
 To apply for winding up of the company.
 To proceed in civil or criminal proceedings against the company.
Major Challenges for stock exchanges

 Cross border trading

 Issuers and investors are expanding their horizons
beyond their home markets
 Investors becoming much more demanding
References:
 http://www.wikipedia.org/
 http://www.investopedia.com/
 http://www.nseindia.com/
 http://www.bseindia.com/