Stock Exchange by Tafakhar

8/11/2019 Stock Exchange by Tafakhar

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STOCKEXCHANGE

EASY WAY TO EARN MONEY,

EASY WAY TO LOOSE MONEY

Heartily Welcome to BBA (H)

Future Executives


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WHAT IS STOCK EXCHANGE

Definition of Stock Exchange : The securities regulation act of 1956

defined stock exchange as an association , organization , or a

individual which is established for for the purpose of assisting ,

regulating , and controlling business in buying ,selling and dealingin securities.

Meaning : This comes under treasury sector ,which provides

service to stock brokers & traders to trade stocks ,bonds and

securities. Stock exchanges helps the companies to raise their fund.Therefore the companies needs to list themselves in the Stock

Exchange and the shares will be issued which is known as equity or

a ordinary share and these shareholders are the real owners of the

company the Board Of Directors of the Company are elected out of

these Equity Shareholders only.


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FEATURES OF STOCK EXCHANGE

It is an organized market

It is a securities market

It is an important constituent of capital market i.e., market for long-

term finance

It is a voluntary association of persons desirous of dealing in securities

Stock exchange is a voluntary association, its membership is not open to

everybody

In a stock exchange, only the members can deal in i.e., buy & sell

securities The members of a stock exchange can buy and sell securities either as

brokers for & on behalf of their clients

The dealings in a stock exchange are under certain accepted code of

conduct i.e., rules and regulations


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IMPORTANT FUNCTION 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 capital formation

Help companies and government to raise funds from the investors

Provide forecasting service


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DIFFERENCES BETWEEN A JOBBER AND A BROKER

JO ER

A jobber is an independent

dealer in securities, purchasing

or selling securities on his own

account

A jobber deals only with the

brokers ,does not deal with the

general public

A jobber earns profit from his

operations i.e., buying andselling activities

Each jobber specializes in certain

group of securities

ROKER

A broker deals with the jobber

on behalf of his clients. in other

words, a broker is a middleman

between a jobber and clients

A broker is merely an agent,

buying or selling securities on

behalf of his clients

A broker gets onlycommission for his dealings

The broker deals in all

types of securities


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SPECULATION AND SPECULATOR

SPECULATION :It is the transaction of members tobuy or sell securities on stock exchange with a view tomake profits to anticipated raise or fall in price ofsecurities.

SPECULATOR: The dealer in stock exchange whoindulge in speculation are called speculator . They do nottake delivery of securities purchased or sold by them , butonly pay or rescue the difference between the purchaseprice and sale price . The different types of speculators are

BULL

BEARSTAG

LAME DUCK


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BULL

He is speculator who expects the future raise in price of

securities he buys the securities to sell them at future dateat the higher price.

He is called as bull because his activities resembles as a bull ,as the bull tends to throw its victims up in the air through itshorns. In simple the bull speculator tries to raise the price of

securities by placing a big purchase orders.


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BEAR {MANDI}

He is speculator whoexpects future fall in prices, he does an agreement tosell securities at future

date at the present marketrate .

He is called as bear becausehis altitude resembles withbear , as the bear tends tostamp its victims down to

earth through its paws . Insimple the bear speculatorforces of prices ofsecurities to fall throughhis activities.


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STAG {DEER}

He operates in new issueof market . He is just like abull speculator . He applieslarge number of shares inthe issue market only by

paying , application money, allotment money. He isnot a genuine investorbecause , he sells thealloted securities at thepremium and makes profit.In simple he is cautious in

his dealings . He creates anartificial rise in prices ofnew shares and makesprofits.


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LAME DUCK

He is speculator when thebear operator finds itdifficult to deliver thesecurities to the consumer

on a particular day asagreed upon , he strugglesas a lame duck in fullfillinghis commitment . Thishappens when the prices

do not fall as expected bythe bear and the otherparty is not willing topostpone the settlement tothe next period.


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Largest stock exchanges

IN THE WORLD

LONDON STOCK EXCHANGE

NEW YORK STOCK EXCHANGE

SHANHAI STOCK EXCHANGE

AUSTRALIA STOCK EXCHANGE

TOKYO STOCK EXCHANGE

HONG KONG STOCKEXCHANGE

TORONTO STOCK EXCHANGE

DEUTSCHE BORSE

BM&F BOVESPA

NASDAQ OMX STOCKEXCHANGE


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How stock exchanges get

moneyThey get their money by listing fees

paid by the corporation to have theircompany traded


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HOW TO DEAL AND INVEST IN

STOCK EXCHANGE

In order to deal with a securities one as to

have an account called Demat a/c or Trading

a/c. It is just like a bank account. Same

procedure of opening the bank account isfollowed to open the a/c. But all the banks

does not give this facility of opening the

account , only few banks provide this facility.After demat a/c or Trading a/s is opened then

the securities is bought and sold.


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HAPPY INVESTMENT WITH

LOTS OF PROFITSEND

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Documents

Stock Exchange by Tafakhar