Secondary Market

Development of Stock Market in India

1875 BSE

Ahmadabad 1894

Calcutta 1908

Madras 1937

Securities Regulation Act 1956

Post Reform Stock Markets

Regional Stock Exchanges

The National Stock Exchange

The Over the Counter Exchange of India

Member of Stock Exchange

He/She should be an Indian citizen

He should not be convicted for fraud

He should not engaged in any other business connected with a company

Minimum age is 21

Brokers are the members of the stock exchange

Brokers are the important intermediaries of SE

A stock broker required to pay annual fee of Rs.5000

Broker and Investor

The broker should provide adequate information regarding the stocks.

The broker should be capable of giving short term and long term investment suggestions to the investors.

The broker should be able to confirm the purchase and sale of the securities quickly.

He should be able to provide price quotes quickly, which is now possible with the computer network.

The broker should be noted for his integrity. He should have a good name in the society.

The broker should have adequate experience in the market to take correct decision.

Types of orders

Limit Orders

Orders are limited by a fixed price

Best Rate Order

Discretionary Order

Stop Loss Order

Share Groups

A Group

basis of equity, market capitalization and public holding. further it should have a good track record and a dividend paying company. It should have good growth potential too.

B1 Group

B Group