Whats Stock Exchange

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WHAT IS STOCK EXCHANGE

Stock exchange is that place where trading of shares isdone in terms of sale and purchase.


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What is a stock market?

Place where business of buying and selling

stock takes place

The stock market is not a specific place,

though some people use the term "Dalaal

Street


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STOCK EXCHANGE

Stock Exchange is the place where investors go

to buy/sell their shares.

Once a company's public offering is complete, itgets listed in a stock exchange. After listing it

would be available for trading to all investors inthe stock exchanges where they are listed.


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How Companies Raise The Capital

By following means

Debentures

EquityLoans


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Why Companies Issue Stock?

When a company would like to grow, it issues

stocks to raise funds and pay for ongoing

business activities It is popular because:

The company does not have to repay the money

Paying dividends is optional

Dividends are distributions of earnings paid to

stockholders


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What is a Stock?

Stock is a share in the ownership of a

company.

It represents a claim on the company's assetsand earnings

Whether you say shares, equity or stock, it allmeans the same thing.


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Types of share

Four types of shares

OrdinaryPreference

Cumulative preference

Redeemable


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Market Segments

Primary market

-Channel for creation of new securities

Secondary market

-The new securities issued in the primary

market are traded the secondary market


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Stock exchange world wide

New York Stock Exchange - United States

NASDAQ (National Association of Security Dealers AutomatedQuotations) - United States

Shanghai Stock Exchange - China

London Stock Exchange - UK


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TOTAL STOCK EXCHANGES IN INDIA

1. Ahmedabad Stock

Exchange2. Bangalore Stock Exchange

3. Bhubaneshwar StockExchange

4. Calcutta Stock Exchange

5. Cochin Stock Exchange

6. Coimbatore StockExchange

7. Delhi Stock Exchange

8. Guwahati Stock Exchange9. Hyderabad Stock Exchange

10.Jaipur Stock Exchange

11.Ludhiana Stock Exchange

1. Madhya Pradesh Stock

Exchange2. Madras Stock Exchange

3. Magadh Stock Exchange

4. Mangalore StockExchange

5. Meerut Stock Exchange6. OTC Exchange Of India

7. Pune Stock Exchange

8. Saurashtra Kutch StockExchange

9. Uttar Pradesh StockExchange

10.Vadodara Stock Exchange


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ISSUES

The way to invite share capital from the

public is through aPUBLIC ISSUE


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Types Of Issues

ISSUES

Public Rights Preferential

IPO FPO

Fresh Issues Offer for sale


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How to Start?

Open Demat A/c.

Open Trading A/c.


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How the Market Work

NSE

Broker

Broker

Public Public


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Bombay Stock Exchange (BSE)


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BOMBAY STOCK EXCHANGE

The BSE is the oldest stock exchange in Asia. It is situated

in Dalal Street in Mumbai.

It is the third largest stock exchange in south Asia and the

tenth largest in the world.

BSE has over 5000 companies that are listed in it.

The objectives of the BSE are similar to that of the NSE.

BSE also uses the latest technologies in the IT field to

provide a single place where traders from across the world

can buy/sell shares in the Indian share market.


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FACTS

The equity market capitalization of the companies listed on

the BSE was US$ 1.79 trillion, making it the largest stock

exchange in South Asia and the 12th largest in the world.

The BSE SENSEX , also called the "BSE 30", is a widely

used market index in India and Asia.

Of all if u see we have about 23 stock exchanges in india

but the majority of the trading takes place in BSE andNSE.


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SERVICES

BSE also has a wide range of services to empowerinvestors and facilitate smooth transactions:

Investor services

BOLT

BSEWEBX.com

Surveillance

BSE traning institute


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BSE also has a wide range of services to empower investors and

facilitate smooth transactions:

Investor Services: The Department of Investor

Services redresses grievances of investors. BSE was thefirst exchange in the country to provide an amount of

Rs.1 million towards the investor protection fund; it is

an amount higher than that of any exchange in the

country. BSE launched a nationwide investor

awareness programme- 'Safe Investing in the StockMarket' under which 264 programmes were held in

more than 200 cities.

The BSE On-line Trading (BOLT): BSE On-lineTrading (BOLT) facilitates on-line screen based trading

in securities. BOLT is currently operating in 25,000

Trader Workstations located across over 359 cities in

India.


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BSEWEBX.com: In February 2001, BSE introduced

the world's first centralized exchange-based Internet

trading system, BSEWEBX.com. This initiative

enables investors anywhere in the world to trade on

the BSE platform.

Surveillance: BSE's On-Line Surveillance System(BOSS) monitors on a real-time basis the price

movements, volume positions and members' positions

and real-time measurement of default risk, market

reconstruction and generation of cross market alerts.

BSE Training Institute: BTI imparts capital market

training and certification, in collaboration with

reputed management institutes and universities. It

offers over 40 courses on various aspects of the capitalmarket and financial sector. More than 20,000 people


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BSE

Index: SENSEX

Sensex means sensitive index Date of Launch: 03 January 1989

Base period:1983-84

Base Index Value:100

30 Stocks

Members: 852

World largest index

Timing: 09.55 AM 03.30 PM

Listed Co. : over 6000


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Market Timings

Trading on all days of the week (exceptSaturdays and Sundays and holidaysdeclared by the exchange in advance)

The market timings are:

Normal market open : 09:55 hours

Normal market close : 15:30 hours

The closing session is held between15.50 hours and 16.00 hours in NSE

and 15.40 hours and 16.00 hours in


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Trading on BSE and NSE

BSE and NSE provide trading facility on

two segments ,which are

- Cash Segment and

- Derivative Segment NSE also has another segment called WDM,

Wholesale Debt Market.


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SENSEX-

Sensex is an index, an index is basically an indicator.

It gives you a general idea about whether most of the

stockshave gone up or most of the stocks have gonedown. The sensex is an indicator of all the prices of the

major companies of the BSE(Bombay stock exchange)


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OBJECTIVE OF SENSEX

To measure market movements

Benchmark for funds performance

For index based derivatives products


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BOMBAY STOCK EXCHANGE-

The BSE or Bombay stock exchange sensitive Index is a valueweighted index. Composed of 30stocks with the base April 1979=100.

It consists of the 30largest and most actively traded stocks,representative of various sectors, on the BSE.

These companies account for around one fifth of the marketcapitalization of the BSE.

The abbreviated from sensex was coined by Deepak mohoni around1990 while writing market analysis columns for some businessnewspaper.

The index has increased by over13 times from June 1990 to

today.using information from April 1979 onwards the long run rate ofreturn on the BSE sensex can be estimated to be 0.52%per week(continuously compounded) with a standard deviation of 3.67%.thistranslates to 27%per annum, which translate to roughly 18% pa aftercompensating for inflation.


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NATIONAL STOCK EXCHANGE

The NSE of India limited was created on the basis of the report

of the high powered study group on establishment of new stock

exchanger,which recommended promotion of NSE by financial

institution to provide access to investors from all across thecountry on an equal footing.

In 1992, NSE was incorporated as a tax paying company unlike

other stock exchange in the country.

In April 1993,NSE was recognized as a stock exchange under

the securities contract(regulation) act,1956. The capital market (equities) segment commenced operation

Nov. 1994 and operations in derivatives segment were started in

June 2000.

NSE launched s&p CNX NIFTY in April


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NIFTY-

Nifty is an indicator of all the major companies of NSE.

The Nifty index is a composite of the top 50stocks

listed on the National stock exchange. It is a simplifiedtool which helps investors & ordinary people alike,

understand what happens in the stock market & by

extension, the economy.


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S&P CNX NIFTY


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OBJECTIVE OF NSE

Establishing nationwide trading facilities for all types of

securities .

Ensuring equal access to investors all over the country throughan appropriate telecommunication network.

Providing fair , efficient & transparent securities market using

electronic trading system.

Meeting international benchmark and standards.


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National Stock Exchange

(NIFTY) November 1992 as a

tax-paying company

In April 1993, it was

recognized as a stockexchange.


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INDEX

SENSEX

Sensex is an index, an index is basically an indicator.

It gives you a general idea about whether most of thestocks have gone up or most of the stocks have gone

down. The sensex is an indicator of all the prices of themajor companies of the BSE(Bombay stock exchange)

It includes 30 companies


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NIFTY(Nifty Fifty)

Nifty is an indicator of all the major companies ofNSE.

TheNifty index is a composite of the top 50 stocks listedon the National stock exchange. It is a simplified toolwhich helps investors & ordinary people alike,understand what happens in the stock market & by

extension, the economy.


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Market Timings

Trading on the equities segment takes place on all days ofthe week (except Saturdays and Sundays and holidaysdeclared by the exchange in advance)

The market timings of the equities segment are:

Normal market open : 09:55 hoursNormal market close : 15:30 hours

The closing session is held between 15.50 hours and16.00 hours in NSE and 15.40 hours and 16.00 hours inBSE


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Trading on BSE and NSE

BSE and NSE provide trading facility on

two segments ,which are

- Cash Segment and- Derivative Segment

NSE also has another segment called WDM,

Wholesale Debt Market.

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Whats Stock Exchange