STOCK EXCHANGE
Introduction It is a place where share, mutual funds and many more financial assets are being traded(i.e. Buying and selling).
It is the ground where investors park their money with prospect of particular value appreciation.
Rags to riches and Riches to rags.
Mr. Rakesh Jhunjhunwala
Smartest investor
The Indian Warren buffet. Who is he ?
Who is he? He is a Gujarati Stockbroker He is ketan parikh (the 2001 scam)
Harshad mehta • The root of the one of the biggest and stunning scandal. • After his arrest bloodbath was across the street. • Lower circuit. • ACC, STERLITE,BPL,TISCO the major injured witnessing consecutive lower push.
Bear
Who is he ?
VP First global.
He is Shankar sharma.
The only person to predict 4 digit sensex when it was around 18k+ approx.
“Be careful he has further predicted sensex @ to kiss 12k”
Role of Stock Exchange
Creating investment Corporate opportuniti governan es for small ce investors.
Raising capital for businesses.
Barometer of the economy.
Mobilizing savings for investment
Stock Exchange?
The exchange makes buying and selling easy.
The price of a stock also reflects the The price of a stock also reflects the dividend that the stock pays.
safety & fair dealing
measure for flow of savings
shows the status and financial standing of the company;
OTCEI
Incorporated in 1990
largest number of companies
One stock exchange in one area
Only & authorized clerks can enter
Benefits to the investor
Benefits to the company
Quick payment of money
Smaller & less liquid companies
Fair prices
New shares at lowest cost
simple procedure of buying & selling
Helps to create market
National Stock Exchange (NSE) National Stock Exchange in 1992.
Trading at NSE can be classified under two broad categories: • Wholesale debt market and • Capital market. There are two kinds of players in NSE: • (a) Trading and • (b) Participants.
Recompenses Greater operational efficiency.
NSE brings an integrated stock market trading network across the nation.
Investors can trade at the same price from anywhere in the country even anywhere in the globe.
BOMBAY STOCK EXCHANGE • •
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The Dalal street. It is the oldest stock market in India. SENSEX is a basket of 30 constituent stocks representing a sample of large, liquid and representative companies. Initial calculation was based on the full market capitalization methodology, then was updated to the free flow market capitalization methodology. The "Free-float Market Capitalization" methodology of index construction is accepted universally SENSEX is regarded to be the pulse of the Indian stock market.
Capital Market Reforms and Developments Problems:
Objectives of measures:
long delays
Effective control – Stock Exchange.
lack of transparency
Enhance the transparency – Increased information flow.
price rigging
Protect the investors
insider trading.
Check insider trading Improve operational efficiency of stock exchange Healthy development of capital market
Free Pricing
Introduction to Book building in 1995
Electronic Trading
Instruments and Market Participants
Advantages: • Transparency • efficient price discovery • reduction in transaction cost.
Improvement s in Trading, Clearing and Settlement Process
Increased Dematerializa tion
Important measures of reform and development are: Near Elimination of CounterParty Risk: Circuit Breakers/Price bands: Structure of Informational Flows: Emphasis on Fair Trading Practices
Increasing Integration of Various Segments of Securities Markets: The impact of the Changing Structure
• Positive impact on the volatility, liquidity and transaction cost.
Great Indian Scam
• SENSEX is regarded to be the pulse of the Indian stock market. • His father was a small businessman. • He studied at the Holy Cross High School, located at Byron Bazaar. After completing his secondary education • Harshad left for Bombay. • While doing odd jobs he ed Lala Lajpat Rai College for a Bachelor’s degree in Commerce.
Favorite stocks • • • • • • •
ACC Apollo Tyres Reliance Tata Iron and Steel Co. (TISCO) BPL Sterlite Videocon.