Stock Exchange-B.V.Raghunandan

TIMES,

October 17, 2008

Meaning

An Organised Market Dealing in Corporate and Government

Securities Secondary Market Part of Capital Market

Functions

Ready Market for Listed Securities

Barometer of Economy Needed to Attract

Foreign Funds Exit Route for

Investors Evaluation

Stability in Prices Investors Grievances Stimulate IPOs Helping Book-Building

Process Corporate Governance Index Compilation Public Finance

Members

Jobbers (Market-makers) Brokers

Functions of a Jobber

Dealer Specialist Stability in the Market No Dealing with Public Jobber’s Profit Equalising Quantity

Two Way Quotes Company Sponsorship Speculation Now, Known as

Market-Makers Servers of a Stock

Exchange also Perform the Function

Characteristics of a Broker Generalist Collecting Orders from Investing Public Getting orders executed through

Jobbers Commission or Brokerage

Stock Market in India-Before 1994

25 Stock Exchanges BSE was the Leader Limited Trading Hours Limited Working Days Long Settlement Badla Transactions Arbitrary Charges Bad deliveries Delay in Settlement Blank Transfers Delay in Settlement

National Stock Exchange

Fully Automated System

Universal Membership Both Debt & Equity

Trading Order Driven Trade Guarantee Demat

Rolling Settlement Settlement Cycle ALBM Grouping of Shares Indexing-Aligned

Bombay Stock Exchange

Fully Computerised Trend Setter Losing to NSE Foreign Stock

Exchanges recently Acquired a Stake

Grouping of Shares Indexing

Speculators

Bull Bear Stag Lame Duck Arbitrageur

Speculative Transactions

Badla Rigging Cornering Wash Sales Dividend Stripping Bonus Stripping

Derivatives

Forward Transactions Futures Options:

Call Option

Put Options and

Double Option

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