Title: Get Introduction about Bombay Stock Exchange
1STOCK MARKET
2CONTENTS
- INTRODUCTION TO STOCK MARKET
- FEATURES OF STOCK MARKET
- IMPORTANCE OF STOCK MARKET
- FUNCTION OF STOCK MARKET
- CLASSIFICATION OF STOCK MARKET
- STOCK INDICES
- CONCLUSION
3STOCK EXCHANGE
- Stocks are issued by companies in order to raise
capitals and are bought by investors in order to
acquire a portion of the company.
Stock exchange means anybody of individual
whether incorporated or not ,constituted for the
purpose of assisting ,regulating or controlling
the business of buying ,selling or dealing in
securities . (Securities Contract
(Regulation) Act ,1956)
4Features of stock exchange
- It is a place where securities issued by
companies, govt. other authorities are
purchased sold. - Its area of operation or geographical
jurisdiction is well defined. - Its purpose is to assist regulate buying
selling in securities. - It operates as per rules 7 guidelines issued by
the Securities Exchange Board Of India (SEBI).
5Importance of stock exchange
- Stock exchange is a organized securities market
which provides sufficient marketability to shares
debentures. - Stock exchange provide a reasonable measure of
safety fair dealing in the buying selling of
securities. - It constitutes the prime centre through which
bulk of investment activities are conducted by
individual institutional operators. - Stock exchange play an important part to speed up
the process of economic in the country. - Stock exchange has been described as the pulse of
the economy of the country.
6 Functions of Stock Exchange
- Provide central and convenient meeting places
for sellers and buyer of securities - Increase the marketability and liquidity of
securities - Contribute to stability of prices of securities
- Equalization of price of securities
- Smoothen price movement
- Help the investors to know the worth of their
holdings - Promote the habit of saving and investment
- Help companies and government to raise funds
from the investors - Provide forecasting service
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8BOMBAY STOCK EXCHANGE
- BSE Limited formerly known as Bombay Stock
Exchange (BSE) , is the oldest stock exchange in
Asia. - It is a stock exchange located on Dalal Street,
Mumbai. - The equity market capitalization of the
companies listed. on the BSE was
US1 trillion as of December 2012 - It the 6th largest stock exchange in Asia and
the 14th largest in the world.
9- BSE was established in 1875 as The Native Share
Stock Brokers. - First Stock Exchange in the country to obtain
permanent recognition in 1956 from GOI. - Around 4700 Indian companies listed with Stock
Exchange. - As of 2012, it is among the five biggest Stock
Exchanges in the world in terms of transactions
volume. As of March 2012, there are over 5,133
listed Indian companies and over 8,196 scrip's on
the stock exchange, the Bombay Stock Exchange has
a significant trading volume. - The BSE SENSEX, also called "BSE 30", is a
widely used market index in India and Asia.
10NATIONAL STOCK EXCHANGE
- The National Stock Exchange (NSE) is stock
exchange located at Mumbai, India. - It is the second fastest growing stock exchange
in the world with a recorded growth of 16.6. - In the year 1991 Pherwani Committee recommended
to establish National Stock Exchange (NSE) in
India.
11- It is the 16th largest stock exchange in the
world by market capitalization and largest in
India by daily turnover and number of trades, for
both equities and derivative trading. - NSE has a market capitalization of around US 985
billion and over 1,646 listings as of December
2012. - In National Stock Exchange there is trading of
equity shares, bonds and government securities.
12- NSE is mutually owned by a set of leading
financial institutions, banks, insurance
companies and other financial intermediaries in
India but its ownership and management operate as
separate entities. - In 2012, NSE was the third largest stock
exchange in the world in terms of the number of
contracts (1221 million) traded in equity
derivatives. - Presently there are 24 stock exchanges in India,
out of which 20 have exchanges National Stock
Exchange (NSE)
13MULTI COMMODITY EXCHANGE OF INDIA LTD (MCX)
- Multi Commodity Exchange of India Ltd (MCX) is an
independent commodity exchange based in India - To facilitate online trading and clearing
settlement operations for commodity futures
across the country. - MCX holds market share of over 80 of the Indian
commodity future market - MCX is the world largest exchange in Silver,
second largest in Gold, Copper and Natural Gas,
and third largest in Crude Oil Futures
14OVER THE COUNTER EXCHANGE OF INDIA (OTCEI)
- Incorporated in 1990, setup to aid enterprising
promoters in raising finance for new projects. - To provide investors with a transparent efficient
mode of trading. - OTCEI introduced a screen based nation wide
trading. - OTCEI introduced many novel concepts to the
Indian capital markets such as screen-based
nationwide trading, sponsorship of companies,
market making and scrip less trading. - The first Indian stock exchange to introduce
nationwide computerized screen based trading.
15STOCK INDICES
16BULLS BEARS
17BULLS
- A Bull Market indicates the constant upward
movement of the stock market. - A particular stock that seems to be increasing in
value is described to be bullish
18BEARS
- A bear market indicates the continuous downward
movement of the stock market. - Stock that seems to be decreasing in value is
described to be bearish.
19STOCK BROKER
- A stockbroker is person who is licensed to trade
in shares. - Brokers also have direct access to the share
market and can act as an agent in share
transactions. - For this service they charge a fee i.e.
brokerage. - They can also offer additional services like
advice on shares, debentures, government bonds
and listed property trusts and non-listed
investment options
20TRADING IN STOCK MARKET
- The market regulator, the Securities and Exchange
Board of India (SEBI), has made it compulsory to
open the demat account if you want to buy and
sell stocks. - A person want to buy/sell stocks in the stock
market has to first place his/her order with a
broker or can do themselves using online trading
systems. - The stocks purchased will be sent to the your
demat account. This process is called Rolling
Settlement Cycle.
21CONCLUSION
- The stock exchange is considered to be the
barometer of economic activity. - Stock exchange regulate and monitor trading
activity - SEBI regulate the functions of stock exchange
- Secondary market provides a platform for sale of
already issued and listed securities.