Bombay Stock Exchange | Information

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STOCK MARKET
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CONTENTS

• INTRODUCTION TO STOCK MARKET
• FEATURES OF STOCK MARKET
• IMPORTANCE OF STOCK MARKET
• FUNCTION OF STOCK MARKET
• CLASSIFICATION OF STOCK MARKET
• STOCK INDICES
• CONCLUSION

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STOCK EXCHANGE

• Stocks are issued by companies in order to raise
  capitals and are bought by investors in order to
  acquire a portion of the company.

Stock exchange means anybody of individual
whether incorporated or not ,constituted for the
purpose of assisting ,regulating or controlling
the business of buying ,selling or dealing in
securities . (Securities Contract
(Regulation) Act ,1956)
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Features of stock exchange

• It is a place where securities issued by
  companies, govt. other authorities are
  purchased sold.
• Its area of operation or geographical
  jurisdiction is well defined.
• Its purpose is to assist regulate buying
  selling in securities.
• It operates as per rules 7 guidelines issued by
  the Securities Exchange Board Of India (SEBI).

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Importance of stock exchange

• Stock exchange is a organized securities market
  which provides sufficient marketability to shares
  debentures.
• Stock exchange provide a reasonable measure of
  safety fair dealing in the buying selling of
  securities.
• It constitutes the prime centre through which
  bulk of investment activities are conducted by
  individual institutional operators.
• Stock exchange play an important part to speed up
  the process of economic in the country.
• Stock exchange has been described as the pulse of
  the economy of the country.

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Functions 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 companies and government to raise funds
  from the investors
• Provide forecasting service

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BOMBAY STOCK EXCHANGE

• BSE Limited formerly known as Bombay Stock
  Exchange (BSE) , is the oldest stock exchange in
  Asia.
• It is a stock exchange located on Dalal Street,
  Mumbai.
• The equity market capitalization of the
  companies listed. on the BSE was
  US1 trillion as of December 2012
• It the 6th largest stock exchange in Asia and
  the 14th largest in the world.

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• BSE was established in 1875 as The Native Share
  Stock Brokers.
• First Stock Exchange in the country to obtain
  permanent recognition in 1956 from GOI.
• Around 4700 Indian companies listed with Stock
  Exchange.
• As of 2012, it is among the five biggest Stock
  Exchanges in the world in terms of transactions
  volume. As of March 2012, there are over 5,133
  listed Indian companies and over 8,196 scrip's on
  the stock exchange, the Bombay Stock Exchange has
  a significant trading volume.
• The BSE SENSEX, also called "BSE 30", is a
  widely used market index in India and Asia.

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NATIONAL STOCK EXCHANGE

• The National Stock Exchange (NSE) is stock
  exchange located at Mumbai, India.
• It is the second fastest growing stock exchange
  in the world with a recorded growth of 16.6.
• In the year 1991 Pherwani Committee recommended
  to establish National Stock Exchange (NSE) in
  India.

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• It is the 16th largest stock exchange in the
  world by market capitalization and largest in
  India by daily turnover and number of trades, for
  both equities and derivative trading.
• NSE has a market capitalization of around US 985
  billion and over 1,646 listings as of December
  2012.
• In National Stock Exchange there is trading of
  equity shares, bonds and government securities.

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• NSE is mutually owned by a set of leading
  financial institutions, banks, insurance
  companies and other financial intermediaries in
  India but its ownership and management operate as
  separate entities.
• In 2012, NSE was the third largest stock
  exchange in the world in terms of the number of
  contracts (1221 million) traded in equity
  derivatives.
• Presently there are 24 stock exchanges in India,
  out of which 20 have exchanges National Stock
  Exchange (NSE)

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MULTI COMMODITY EXCHANGE OF INDIA LTD (MCX)

• Multi Commodity Exchange of India Ltd (MCX) is an
  independent commodity exchange based in India
• To facilitate online trading and clearing
  settlement operations for commodity futures
  across the country.
• MCX holds market share of over 80 of the Indian
  commodity future market
• MCX is the world largest exchange in Silver,
  second largest in Gold, Copper and Natural Gas,
  and third largest in Crude Oil Futures

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OVER THE COUNTER EXCHANGE OF INDIA (OTCEI)

• Incorporated in 1990, setup to aid enterprising
  promoters in raising finance for new projects.
• To provide investors with a transparent efficient
  mode of trading.
• OTCEI introduced a screen based nation wide
  trading.
• OTCEI introduced many novel concepts to the
  Indian capital markets such as screen-based
  nationwide trading, sponsorship of companies,
  market making and scrip less trading.
• The first Indian stock exchange to introduce
  nationwide computerized screen based trading.

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STOCK INDICES
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BULLS BEARS
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BULLS

• A Bull Market indicates the constant upward
  movement of the stock market.
• A particular stock that seems to be increasing in
  value is described to be bullish

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BEARS

• A bear market indicates the continuous downward
  movement of the stock market.
• Stock that seems to be decreasing in value is
  described to be bearish.

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STOCK BROKER

• A stockbroker is person who is licensed to trade
  in shares.
• Brokers also have direct access to the share
  market and can act as an agent in share
  transactions.
• For this service they charge a fee i.e.
  brokerage.
• They can also offer additional services like
  advice on shares, debentures, government bonds
  and listed property trusts and non-listed
  investment options

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TRADING IN STOCK MARKET

• The market regulator, the Securities and Exchange
  Board of India (SEBI), has made it compulsory to
  open the demat account if you want to buy and
  sell stocks.
• A person want to buy/sell stocks in the stock
  market has to first place his/her order with a
  broker or can do themselves using online trading
  systems.
• The stocks purchased will be sent to the your
  demat account. This process is called Rolling
  Settlement Cycle.

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CONCLUSION

• The stock exchange is considered to be the
  barometer of economic activity.
• Stock exchange regulate and monitor trading
  activity
• SEBI regulate the functions of stock exchange
• Secondary market provides a platform for sale of
  already issued and listed securities.