A STUDY ON STOCK

MARKET

1ST YEAR M.COM SEM I

 WHAT ARE STOCKS ?
A stock is a share in the ownership of a As an owner (shareholder), it entitles to
company. Stock represents a claim on share of the company’s earnings as well
the company’s assets and earnings. as any voting rights attached to the stock.

TYPES OF
STOCKS

COMMON STOCK PREFERRED STOCK

WHY DO COMPANIES ISSUE STOCKS ?

At some point every company needs to raise

money. Companies can either borrow it from
somebody or raise it by selling a part of the
company.

By issuing stock, the company does not

have to pay back the money or make
interest payments.
 WHAT IS AN IPO?

IPO stands for Initial Public Offering. It is the

first time the stock is available to the public to
purchase.

The stock exchange itself is a secondary

market. The primary market is the brokers.
 BULL VS BEAR

The Bull – a bull market is when the economy is

doing well, the GDP is growing and stock prices
are rising. The bull market charges ahead.

The Bear – a bear market is when the economy is bad,

recession is looming and stock prices are falling.
A bear market hibernates and moves slowly.
 STOCK
EXCHANGES
 NYSE & NASDAQ
The New York Stock Exchange (NYSE) is an auction market whereas National Association of
Securities Dealer Automated Quotations (NASDAQ) is a dealer market.

NYSE NASDAQ

In the auction market method, participants buy
and sell directly from each other. Having an
auction market means that buyers and sellers
enter competitive bids at the same time.
Executing a stock trade reflects the highest bid
price paired with the lowest asking price.
In the dealer market method, participants do
not buy and sell directly from each other, but
rather through a dealer. These dealers are
known as “market makers”. The market maker,
usually a brokerage house or bank, matches
buyers and sellers electronically very quickly.
NYSE NASDAQ
 LONDON STOCK EXCHANGE
(LSE)
It was the first stock exchange established by East India
Company in 18th century in London. The top gainers of
London Stock Exchange (LSE) is “ Blue Chip Shares”.
A Blue Chip stock is a huge company with an excellent
reputation. These are typically large, well-established, and
financially sound companies that have operated for many
years and that have dependable earnings, often paying
dividends to investors. Some examples of Blue Chip
Stocks are: Vodafone Group PLC, Unilever PLC, HSBC
Holdings PLC etc.
 NATIONAL STOCK EXCHANGE
(NSE)
The NSE is the leading stock exchange of
India, covering 370 cities and towns in
India. It was established in 1994 as a Tax
Company. It was established by 21
leading financial institutions and banks
like IDBI, ICICI, IFCI, LIC, SBI etc.
Market Timings of NSE are 9:15am to
3:30pm.
 BOMBAY STOCK EXCHANGE
(BSE)
It is the oldest and first stock exchange of
India which is established in the year
1875. First it was started under a banyan
tree opposite to town hall of Bombay over
22 stock brokers.
Market Timings of BSE are 9:15am to
3:30pm.
 (2020) COVID 19 CRASH

The global outbreak of COVID-19 has severely impacted the financial markets because of
lockdown and decreasing demand in the whole world. The fall in the price of crude oil had further
deteriorated the economic scenario. The 2020 stock market crash was a major and sudden
global stock market crash that began on 20 February 2020 and ended on 7 April.
The crash caused a short-lived bear market, and in April 2020 global stock markets re-entered a
bull market, though U.S. market indices did not return to January 2020 levels until November
2020.
THANK YOU!!