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WHATIS STOCKEXCHANGE?
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 dealing
in 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.
FEATURESOF 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
IMPORTANTFUNCTIONOF STOCKEXCHANGE
 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
HISTORY OF STOCK EXCHANGE
The stock exchange was established by “East India
company” in 18th century . In India it was established
in 1850 with 22 stock brokers opposite to town hall
Bombay .This stock exchange is known as oldest stock
exchange of Asia.
BULL {TEJIWALA}
He is speculator who expects the future raise in price of
securities he buys the securities to sell them at future date
at 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 its
horns. In simple the bull speculator tries to raise the price of
securities by placing a big purchase orders.
BEAR {MANDIWALA}
He is speculator who
expects future fall in prices
, he does an agreement to
sell securities at future
date at the present market
rate .
He is called as bear because
his altitude resembles with
bear , as the bear tends to
stamp its victims down to
earth through its paws . In
simple the bear speculator
forces of prices of
securities to fall through
his activities.
Largest stock exchanges
IN THE WORLD
 LONDON STOCK EXCHANGE
 NEW YORK STOCK EXCHANGE
 SHANHAI STOCK EXCHANGE
 AUSTRALIA STOCK EXCHANGE
 TOKYO STOCK EXCHANGE
 HONG KONG STOCK
EXCHANGE
 TORONTO STOCK EXCHANGE
 DEUTSCHE BORSE
 BM&F BOVESPA
 NASDAQ OMX STOCK
EXCHANGE
IN INDIA
 NATIONAL STOCK EXCHANGE
 BOMBAY STOCK EXCHANGE
 CALCUTTA STOCK EXCHANGE
 COCHIN STOCK EXCHANGE
 MULTI COMMODITY
EXCHANGE
 DERIVATIVES EXCHANGE
 OTC EXCHANGE
 PUNE STOCK EXCHANGE
 INTERCONNECTS EXCHANGE
LONDON STOCK EXCHANGE
It was the first stock exchange established by
east India company in 18th century in London.
The top gainer of LONDON STOCK EXCHANGE
is “Blue chip shares”.
BOMBAY STOCK EXCHANGE
It is oldest and first stock
exchange of India
established in the year
1875. First it was started
under baniyan tree
opposite to town hall of
Bombay over 22 stock
brokers. The top gainer in
BSE is 100 companies in
that GMR infra is first
NATIONALSTOCK EXCHANGEOF
INDIA(NSEOR NSEI)
The NSE of India is the leading stock
exchange of India, covering 370 cities and
towns in the
country. It was established in1994 as a TAX
company. It was established by 21 leading
financial institutions and banks like the
IDBI,ICICI,IFCI,LIC,SBI,etc.
Features of NSEI
Nation wide coverage i.e., investors from all over country
Ringless i.e., it has no ring or trading floor
Screen-based trading i.e., trading in this stock exchange is done electronically.
Transparency,i.e.,the use of computer screen for trading makes the dealings in
securities transparent.
Professionalization in trading, i.e., it brings professionalism in its functions
OVER-THE-COUNTER EXCHANGE OF
INDIA(OTCEI)
The OTCEI is a national,ringless and computerized stock
exchange. It was established in october,1990.it started its
operation in september,1992.
Features of OTCEI
1. It is a nation-wide stock exchange. Its operational areas cover entire India.
2. It is a ringless stock exchange. The trading ring(i.e., trading place)commonly found in a
traditional stock exchange is not found in the OTCEI.
3. It is a computerized stock exchange
Advantages of OTCEI
1. It helps the investors to have easy and direct access to the stock exchange
2. It helps investors to get fair prices for their securities
3. It provide safety to the investors
4. To provide computerized trading system
5. To provide investors a convenient,effcient and transparent mode of
investment
SECURITIES AND EXCHANGE BOARD OF
INDIA(SEBI)
The SEBI was constituted on 12th April,1988 under a
resolution of the Government of India. On 31st
january,1992,it was made a statutory body by the
Securities and Exchange board of India Act,1992.
The Companies (Amendment) Act,2000 has given certain
powers to SEBI as regards the issues and transfer of
securities and non-payment of dividend
Function Of SEBI
Regulating the business in stock exchange and any other securities
markets.
Promoting and regulating self-regulatory organization.
Registering and regulating the work of collective investment
scheme,incluing mutual funds.
Prohibiting fraudulent and unfair trade practices relating to
securities market.
Promoting education, and training of intermediaries of securities
market
Power of SEBI
Power to approve the bye-laws of stock exchange
Power to inspect the books of accounts
Power to grant license to any person for the purpose of dealing in certain areas.
Power to delegate powers exercisable by it.
Power to try directly the foliation of certain provision of the company Act
HAPPY INVESTMENT WITH LOTS OF
PROFITS
END
************
First lesson of stock trading by dicm

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First lesson of stock trading by dicm

  • 1.
  • 2. WHATIS STOCKEXCHANGE? 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 dealing in 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.
  • 3. FEATURESOF 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
  • 4. IMPORTANTFUNCTIONOF STOCKEXCHANGE  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
  • 5. HISTORY OF STOCK EXCHANGE The stock exchange was established by “East India company” in 18th century . In India it was established in 1850 with 22 stock brokers opposite to town hall Bombay .This stock exchange is known as oldest stock exchange of Asia.
  • 6. BULL {TEJIWALA} He is speculator who expects the future raise in price of securities he buys the securities to sell them at future date at 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 its horns. In simple the bull speculator tries to raise the price of securities by placing a big purchase orders.
  • 7. BEAR {MANDIWALA} He is speculator who expects future fall in prices , he does an agreement to sell securities at future date at the present market rate . He is called as bear because his altitude resembles with bear , as the bear tends to stamp its victims down to earth through its paws . In simple the bear speculator forces of prices of securities to fall through his activities.
  • 8. Largest stock exchanges IN THE WORLD  LONDON STOCK EXCHANGE  NEW YORK STOCK EXCHANGE  SHANHAI STOCK EXCHANGE  AUSTRALIA STOCK EXCHANGE  TOKYO STOCK EXCHANGE  HONG KONG STOCK EXCHANGE  TORONTO STOCK EXCHANGE  DEUTSCHE BORSE  BM&F BOVESPA  NASDAQ OMX STOCK EXCHANGE IN INDIA  NATIONAL STOCK EXCHANGE  BOMBAY STOCK EXCHANGE  CALCUTTA STOCK EXCHANGE  COCHIN STOCK EXCHANGE  MULTI COMMODITY EXCHANGE  DERIVATIVES EXCHANGE  OTC EXCHANGE  PUNE STOCK EXCHANGE  INTERCONNECTS EXCHANGE
  • 9. LONDON STOCK EXCHANGE It was the first stock exchange established by east India company in 18th century in London. The top gainer of LONDON STOCK EXCHANGE is “Blue chip shares”.
  • 10. BOMBAY STOCK EXCHANGE It is oldest and first stock exchange of India established in the year 1875. First it was started under baniyan tree opposite to town hall of Bombay over 22 stock brokers. The top gainer in BSE is 100 companies in that GMR infra is first
  • 11. NATIONALSTOCK EXCHANGEOF INDIA(NSEOR NSEI) The NSE of India is the leading stock exchange of India, covering 370 cities and towns in the country. It was established in1994 as a TAX company. It was established by 21 leading financial institutions and banks like the IDBI,ICICI,IFCI,LIC,SBI,etc. Features of NSEI Nation wide coverage i.e., investors from all over country Ringless i.e., it has no ring or trading floor Screen-based trading i.e., trading in this stock exchange is done electronically. Transparency,i.e.,the use of computer screen for trading makes the dealings in securities transparent. Professionalization in trading, i.e., it brings professionalism in its functions
  • 12. OVER-THE-COUNTER EXCHANGE OF INDIA(OTCEI) The OTCEI is a national,ringless and computerized stock exchange. It was established in october,1990.it started its operation in september,1992. Features of OTCEI 1. It is a nation-wide stock exchange. Its operational areas cover entire India. 2. It is a ringless stock exchange. The trading ring(i.e., trading place)commonly found in a traditional stock exchange is not found in the OTCEI. 3. It is a computerized stock exchange Advantages of OTCEI 1. It helps the investors to have easy and direct access to the stock exchange 2. It helps investors to get fair prices for their securities 3. It provide safety to the investors 4. To provide computerized trading system 5. To provide investors a convenient,effcient and transparent mode of investment
  • 13. SECURITIES AND EXCHANGE BOARD OF INDIA(SEBI) The SEBI was constituted on 12th April,1988 under a resolution of the Government of India. On 31st january,1992,it was made a statutory body by the Securities and Exchange board of India Act,1992. The Companies (Amendment) Act,2000 has given certain powers to SEBI as regards the issues and transfer of securities and non-payment of dividend Function Of SEBI Regulating the business in stock exchange and any other securities markets. Promoting and regulating self-regulatory organization. Registering and regulating the work of collective investment scheme,incluing mutual funds. Prohibiting fraudulent and unfair trade practices relating to securities market. Promoting education, and training of intermediaries of securities market
  • 14. Power of SEBI Power to approve the bye-laws of stock exchange Power to inspect the books of accounts Power to grant license to any person for the purpose of dealing in certain areas. Power to delegate powers exercisable by it. Power to try directly the foliation of certain provision of the company Act
  • 15. HAPPY INVESTMENT WITH LOTS OF PROFITS END ************