This action might not be possible to undo. Are you sure you want to continue?
BY VISHNU S RAJ 1st BCOM 140 MARIAN COLLEGE
WHAT IS STOCK EXCHANGE
Stock exchange is that place where trading of shares is done in terms of sale and purchase.
There are 23 stock exchanges in the India. Mumbai's (earlier known as Bombay), Bombay Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the twenty-two Stock Exchanges recognised by the Government of India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be recognised and it is the only one that had the privilege of getting permanent recognition ab-initio.
Name of Indian stock exchange:
1.Bombay stock exchange 2.national stock exchange(Mumbai) 3.Banglore stock exchange 4.Utter pradesh stock exchange(kanpur) 5.Magadh stock exchange(Patna) 6.Ahmedabad stock exchange 7.vadodara stock exchange(Baroda) 8.Bhubaneswar stock exchange 9.Calcutta stock exchange(kolkata) 10.madras stock exchange
Ludhina stock exchange 18.Mangalore stock exchange 19.Pune stock exchange 20.saurashtrakutch stock exchange .Jaipur stock exchange 17.Hydrabad stock exchange 15. 11.Gauhati stock exchange 14.coimbatore stock exchange 13.Cont««.Cochin stock exchange 12.Madhya pradesh stock exchange(indore) 16.
AIRTEL 4.HDFC BANK .DLF 7.Cont««.GUJRAT AMBUJA 9. Name:1.BHEI 5.GRASIM 8.ACC 2. Bombay stock exchange : it has 30 companies sripted.BAJAJ 3.CIPLA 6.HDFC 10.
ICICI BANK 15.HUL 14.L&T 18.HERO HONDA 12.NTPC 20.INFICYS 16.MARUTI 19.HINDALCO 13.ITC 17.ONGC .CONT«« 11.
RELIANCE ENERGY 24.SATYAM 26.RANBAXY 22.SBI 27.TCS 28.RELIANCE COMMUNICATION 23.TATA MOTERS 29.WIPRO .TATA STEEL 30.RIL 25.CONT«« 21.
2007 --. 2007 --.408.826 points Dec 17. 2007 --. 3.687.769.THE TOP TEN SINGLE DAY FALLS OF THE SENSEX HAS : 1.642.98 points May 18. 9.717. 6.857 points Feb 11. 2008 --. 2008 --.43 points Jan 18. 2. 2007 --.833. 7.678.616. 5.70 points Apr 2.18 points Aug 16. 2007 --. 2007 --. 4.1. Jan 21.48 points Oct 17.35 points Jan 22. 2008 --. 10. 2006 --.82 points Nov 21. 8.73 points .
BSE CHART .
61 (2.349.309.68 Open: 17.17.07 Trade Time: 3:58PM IST Change: 385.47 .734.526.503.04 Day's Range: 17.80 .17%) Prev Close: 17. Index Value: 17.
PowerPoint prevented this external picture from being automatically downloaded. is India's first debt market. NSE The National Stock Exchange (NSE). click Options in the Message Bar.To help protect your privacy. government security and bonds issued by public sector companies . To download and display this picture. treasury bills. The instruments traded are. It opened for trading in mid-1994. located in Bombay. and then click Enable external content. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. It was set up in 1993 to encourage stock exchange reform through system modernization and competition.
To download and display this picture.To help protect your privacy. PowerPoint prevented this external picture from being automatically downloaded. click Options in the Message Bar. CONT«««. which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. The Organisation: The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. . and then click Enable external content.
To download and display this picture. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a taxpaying company unlike other stock exchanges in the country . click Options in the Message Bar.To help protect your privacy. PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content. CONT««« Based on the recommendations.
PowerPoint prevented this external picture from being automatically downloaded.ss NSE Group: 1. (NSCCL) 3. Cont««««««««. 4. and then click Enable external content. India Index Services & Products Ltd.To help protect your privacy. National Securities Depository Ltd.. NSE. (NSDL) 5. click Options in the Message Bar. To download and display this picture. National Securities Clearing Corporation Ltd.IT Ltd. DotEx International Limited . (IISL) 2.
selling. To download and display this picture. click Options in the Message Bar. PowerPoint prevented this external picture from being automatically downloaded. and then click Enable external content.holding.collectibles or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via method like dividends or interest. SPECULATION : Definition : it involves the buying.bonds.shortterm selling of stocks.currencies.commodities.To help protect your privacy. .
click Options in the Message Bar. To download and display this picture.To help protect your privacy.It is also called ³short selling´.he is also called a long buyer. Kinds of speculation Bull Market (Tejiwala): In case of that they purchase the shares at current prices to sell at a higher price in the near future and makes a profit if his expectations come true. PowerPoint prevented this external picture from being automatically downloaded. . and then click Enable external content. Bear Market (Mandiwala) : He sells security in the hope that he will be able to buy them back at lesser price.
.He is bullish and very cautious.Cont«««««« Lame duck : When a bear has made contracts to sell securities.find it difficult to meet his commitment due to non-availability of security.they always struggling.. Stag : He is that type of speculator who applies for a large number of a shares in a new issue with the intention of selling them at a premium. .
M.45(US.4072 S'pore Dollar 29.CurrencyIN .Forex Market Mar 19.20 Japanese Yen 0.160 . 4:30 P. 40.48 GB Pound 81.DOLLAR) Euro 63.
3.Government can undertake projects of national importance and social value raising funds through the sale of its securities on the stock exchange. 5.It assist the economis development by providing a body of interested investors.it uploads the position of superior enterprises and assist them in raising further funds.It is the stock exchanges that central bank of a country can control credit by undertaking open market operations (purchase and sale of securities) .BENEFITS OF STOCK EXCHANGE FROM THE POINT OF VIEW OF COMMUNITY: 1. 2.It encourages capital formation 4.
merger or amalgamation.The market for the shares of such a company is naturally widened.dividends and property values.A company whose shares quoted on stock exchange they enjoy better reputation and credit. 3. 2.FROM THE COMPANY POINT OF VIEW 1. .This raises the bargaining power of the company in the event of a takeover.The market price of securities is likely to be higher in relation to its earnings.
The stock exchange safeguards interests of investors through strict enforcement of rules and regulations.The securities dealt on a stock exchange are good collateral security for loans.FROM THE INVESTORS POINT OF VIEW 1.The present net worth of investments can be easily known by the daily quotations. 4. 5.Liquidity of the investment is increased 2. 3.His risk is considerably less when he holds or purchases listed securities. .
ROLE PLAYER EXTERNAL:--- 1.SHAREHOLDER 2.DEBENTURE HOLDER .
.Preference shareholder: Preference shareholder are those which have preferential right to the payment of dividend during the life time of the company.SHAREHOLDER Shareholders are divided into two parts 1.and a preferential right to the return of the capital when the company is wound up.
the preference shareholder must be paid back their capital before anything is paid to the ordinary shareholders. 2.CHARACTERISTICS OF PREF.They get their fixed rate of dividend before any dividend is distributed among the other class of shareholders. 3. .SHAREHOLDER 1.At the time of winding up of the company.The dividend on them is fixed by the articles of the company.
share: These shares cannot claim arrears of dividends of any year (if not paid due to insufficiency of pfofits ) out of rofits of subsequent year.Non comulative pref.Comulative shareholder: These shares are entitled to fixed dividends whether there are profits or loss. .SHAREHOLDER 1.KINDS OF PREF. 2.If profits are not sufficient to pay in a particular year then that will pay on next year.
4. 3. Shares: These shares receives a fixed rate of dividend in priority to ordinary shares and further.the right to participate in balance of profits in an agreed proportion together with ordinary shares.Cont««. .The company researves its rights to call back or purchased these shares at any time .Redeemable pref.shares: These are shares which can be purchased back by the company.Participating pref.
These shares do not have a fixed rate of dividend.they are always irredeemable and their holders have normal voting rights. They take dividend . They are also the owners of the company.EQUITY SHARES All shares which are not preference shares are equity shares.
DEBENTURES A document under the company seal which provides for the payment of a principal sum and interest there on at regular intervals which is usually secured by a fixed or floating charge on the company¶s property or undertaking which acknowledges a loan to the company. .
. B.INTERNAL PLAYERS The members of the stock exchange can be divided into two parts: A.He works for profit.Jobber: He is an independent dealer securities.He purchase and sells securities in his own name. He is not allowed to deal with nonmembers directly.Broker: He is a commission agent who transacts business in securities on behalf of nonmembers.They may have number of sub-brokers to canvass and secure business for them.
They buy or sell on the behalf of employers.Tarawaniwala Non-members : The following categories of non members are also permitted to enter trading hall and transact business on the behalf of members. . Remisers: They are the sub-brokers. Authorized clerks: They are the assistant or agents.They can not transact business on their own account. He is also called the half commission men.
DAMAND AND SUPPLY 2.CHANGE IN COMPANY¶S BOARD OF DIRECTORS 6.CAUSES OF PRICE FLUCTUATION 1.BANK RATE 3.FINANCIAL POSITION OF THE COMPANY .SPECULATIVE PRESSURE 4.ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL INSTITUTIONS 5.
EXPECTED MONSOON B. 7.OTHER FACTORS: A.POLITICAL FACTORS 9..TRADE CYCLE 8.PERSONAL HEALTH OF HEAD OF GOVERNMENT OR CHAIRMAN OF THE COMPANY C.CONT««. .OIL PRICES IN THE INTERNATIONAL MARKET.SYMPATHETIC FLUCTUATIONS 10.
NEW BUDGET PROPOSALS I.STOCK BROKERS SCAM LIKE HARSHAD MEHTA AND KETHAN PAREKH G.CONT««. . D.CHANGES IN EXCHANGE RATE E.BORDER TENSION F.LOBERLIZATION AND PRIVATIZATION OF THE COMPANY. H.STRIKES AND LOCK-OUT OF THE COMPANY.
SEBI It was constituted and made a statutory body by SEBI act 1992.With the coming into effect of SEBI. . some of the powers and function exercised by the central government.in respect of regulation of stock exchanges were transferred to the SEBI.
underwriters«««.OBJECTIVES OF SEBI 1. . 4.Registering and regulating the working of collective investment scheme including mutual funds.who may be associated securities market in any manner.Registring and regulating the working of stock brokers. 2. 3.sub-brokers.share transfer agents.Regulating substantial acquisition of shares and takeovers of companies.Prohibiting insider trading in securities.
Cont«« 5.as may be delegated to it by the central government. 6.conducting inquiries and audits of stock exchanges and intermediaries and self regulatory organizations in the securities market. .Calling for information from.Performing such function and exercising such powers under the provisins of the capital issues(control) act 1947 and SCRA 1956.undertaking inspection. 7.Performing such other functions as may be prescribed.
.BUY BACK SHARES In simple term when company re-purchase of its own shares that is called buy back shares.
a maximum number of shares that it will commit to buy and an expiration date for the offer.Fixed price tender offers: company announces a fixed price at which it is willing to buy its shares.MODESS OF REPURCHASE BASICALLY THERE ARE TWO MODES OF REPURCHASE: 1.The offer price is premium over the market price to encourage the shareholder. . 2.The purchases are made anonymously through a broker from the secondary market over a specified period of time.tender offers: this is basically two types A.Open market repurchase: company makes an announcement regarding the repurchase of a specified number of shares.
Cont««««. . the company announces the maximum number of shares it wishes to buy and a range of prices at which it will entertain offers.Shareholders who choose to participate must then select a single price in this range at which to tender their shares. Dutch auction tender offers : In a dutch auction.
4. spot transactions or private arrangements is not permitted.In case of purchase through the stock exchange an offer for buy back will not remain open for more than 30 days.Regulations cover only the listed securities of the company 2.In the purchases made through stock exchange. . 3.Buy back through negotiated deals.RULES FOR REPURCHASE UNDER SEBI ACT 1988 1. the details under the buy back scheme shall be made available to the stock exchange on daily basis:the details in turn shall be made available to public regularly.
management quality.Rating is not fixed.accounting accuracy.auditors quality.HOW RATING IS GIVEN TO THE COMPANY? Basically rating is given after see the company 'image. The rating grades are: AAA: HIGHEST SAFTY AA: HIGH SAFTY A: ADEQUATE SAFTY BBB: MODERATE SAFTY BB: IN ADEQUATE SAFTY BC&D: HIGH RISK AND DEFAULT . it may be change.assets quality.
CRISIL 2.DPCR .CREDIT RATING AGENCY IN INDIA 1.ICRA 3.CARE 4.
.conclusion THE STOCK EXCHANGE IS CONSIDERED TO BE THE BAROMETER OF ECONOMIC ACTIVITY.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.