Stock Exchange Easy Way to Earn Money

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STOCK EXCHANGE

• EASY WAY TO EARN MONEY,

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WHAT IS STOCK EXCHANGE?

• 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.

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FEATURES OF 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

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IMPORTANT FUNCTION 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 capital formation
• Help companies and government to raise funds from
  the investors
• Provide forecasting service

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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.

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Initial members who are still running their
business in stock exchange are

• D.S.Prabhudas company
• Jamnadas Morarjee
• Champak lal Devidas
• Brymohan Laxminarayan

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BROKER AND JOBBER

• BROKER He is one acts as a intermidiary on
  behalf of others. A broker in a stock exchange
  ,is a commission agent who transacts business in
  securities on behalf of non members.
• JOBBER He is not allowed to deal with the public
  directly .He deals with brokers who are engaged
  with the investors . Thus, the securities is
  bought by the jobber from members and sells to
  members who are operating on the stock exchange
  as broker.

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DIFFERENCES BETWEEN A JOBBER AND A BROKER

• JOBBER

• BROKER

• A jobber is an independent dealer in securities,
  purchasing or selling securities on his own
  account
• A jobber deals only with the brokers ,does not
  deal with the general public
• A jobber earns profit from his operations i.e.,
  buying and selling activities
• Each jobber specializes in certain group of
  securities

• A broker deals with the jobber on behalf of his
  clients. in other words, a broker is a middleman
  between a jobber and clients
• A broker is merely an agent, buying or selling
  securities on behalf of his clients
• A broker gets only commission for his dealings
• The broker deals in all types of securities

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SPECULATION AND SPECULATOR

• SPECULATION It is the transaction of members to
  buy or sell securities on stock exchange with a
  view to make profits to anticipated raise or fall
  in price of securities.
• SPECULATOR The dealer in stock exchange who
  indulge in speculation are called speculator .
  They do not take delivery of securities purchased
  or sold by them , but only pay or rescue the
  difference between the purchase price and sale
  price . The different types of speculators are
• BULL
• BEAR
• STAG
• LAME DUCK

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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.

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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.

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STAG DEER

• He operates in new issue of market . He is
  just like a bull speculator . He applies large
  number of shares in the issue market only by
  paying , application money , allotment money. He
  is not a genuine investor because , he sells the
  alloted securities at the premium and makes
  profit. In simple he is cautious in his dealings
  . He creates an artificial rise in prices of new
  shares and makes profits.

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LAME DUCK

• He is speculator when the bear operator finds
  it difficult to deliver the securities to the
  consumer on a particular day as agreed upon , he
  struggles as a lame duck in fullfilling his
  commitment . This happens when the prices do not
  fall as expected by the bear and the other party
  is not willing to postpone the settlement to the
  next period.

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Largest stock exchanges

• IN THE WORLD

• IN INDIA

• 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
• BMF BOVESPA
• NASDAQ OMX STOCK EXCHANGE

• NATIONAL STOCK EXCHANGE
• BOMBAY STOCK EXCHANGE
• CALCUTTA STOCK EXCHANGE
• COCHIN STOCK EXCHANGE
• MULTI COMMODITY EXCHANGE
• DERIVATIVES EXCHANGE
• OTC EXCHANGE
• PUNE STOCK EXCHANGE
• INTERCONNECTS EXCHANGE

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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.

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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

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NATIONAL STOCK EXCHANGE OF INDIA(NSE OR
NSEI)The NSE of India is the leading stock
exchange of India, covering 370 cities and towns
in thecountry. 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

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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
• It is a nation-wide stock exchange. Its
  operational areas cover entire India.
• 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.
• It is a computerized stock exchange
• Advantages of OTCEI
• It helps the investors to have easy and direct
  access to the stock exchange
• It helps investors to get fair prices for their
  securities
• It provide safety to the investors
• To provide computerized trading system
• To provide investors a convenient,effcient and
  transparent mode of investment

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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

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• 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

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How to see the value of shares in stock exchange

• SENSEX is an indicator to checkout in BSE
• NIFTY is an indicator to checkout in NSE

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Latest news of BSE and NSE

• Most profitable company in BSE is GMR Infra
• Most profitable company in NSE will be RELIANCE
  and ICICI
• During last three months nearly only 26 of
  profit is earned by our stock exchanges the
  working hours will be
• From 930 to 330 from Monday to Friday

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The Daily graph of the companies will be showed
in following manner
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How stock exchanges get money

• They get their money by listing fees paid by the
  corporation to have their company traded

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HOW TO DEAL AND INVEST IN STOCK EXCHANGE

• In order to deal with a securities one as to
  have an account called Demat a/c or Trading a/c.
  It is just like a bank account. Same procedure of
  opening the bank account is followed to open the
  a/c. But all the banks does not give this
  facility of opening the account , only few banks
  provide this facility. After demat a/c or Trading
  a/s is opened then the securities is bought and
  sold. The banks which gives facility of demat a/c
  in India is
• ICICI Bank
• Citi Bank
• Bank of Baroda

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HAPPY INVESTMENT WITH LOTS OF PROFITS

• END

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