BOMBABY STOCK EXCHANGE

BYVENKATA RAVINDRANATH REDDY

G.BALAKRISHNAG.KIRAN

L.VENKATESWARANJENNIFER

UTPAL ROY

CONTENTS• Introduction

Introduction• STOCK EXCHANGE• A marketplace in which securities, commodities, derivatives and other

financial instruments are traded• stock exchange - is to ensure fair and orderly trading, as well as efficient

dissemination of price information for any securities trading on that exchange.• Exchanges give companies, governments and other groups a platform

to sell securities to the investing public.• An exchange may be a physical location where traders meet to conduct

business or an electronic platform.

• STOCK MARKET• A stock market is place where people used to buy and sell shares of a company• The value of the share depends on how many people want to buy it and how

many people are selling it.• People usually trade shares in stocks through a broker• a stock broker is person who buy’s and sells stocks for their customer’s.• WHAT IS STOCK• A type of security that signifies ownership in a corporation and represents a

claim on part of the corporation's assets and earnings.

BOMBAY STOCK EXCHANGE• Established in 1875• Located on Dalal street, Mumbai• Second oldest stock exchange in India• It is the11th largest stock exchange in the world by market capitalization• BSE provides an efficient and transparent market for trading in equity,

debt instruments, derivatives, mutual funds.• More than 5000 companies are listed on BSE• The companies listed in BSE has a market capitalization of $1.32 trillion

• Requirements To list on Bombay Stock Exchange:• Bombay Stock Exchange: Bombay Stock Exchange (BSE) has requirements for a

minimum market capitalization of Rs.250 Million and minimum public float equivalent to Rs.100 Million• BSE SENSEX• The S&P BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index), also-called

the BSE 30 or simply the SENSEX, is a free-float market-weightedstock market index of 30 well-established and financially sound companies listed on Bombay Stock Exchange• These 30 are some largest and most traded stocks• As of April 2012 the market capitalization of BSE SENSEX is 47.33 out all stocks

How to trade shares• There are two ways:• Intra-day• Normal• In intraday one have to buy shares at opening day and should have to

sell them at closing time of that day• In carry forward one can keep the shares with them and when they

want sell then they can sell

• HOW CAN WE BUY SHARES• Through Stock Brokers ex: Share khan, India infoline, ICICI securities etc.• Through Online Trading Account • An online trading account comprises of A Demat Account A trading Account Commodity and Forex trading AccountDemat Account:It is a de- materialized form a account where the user can keep all his shares in electronic form.A trading account is where one can sell and buy shares in onlineA commodity account where one can trade on futures

• Benefits to Investor1. Liquidity of the investment is increased2. The securities dealt on a stock exchange are good collateral

security for loans.3. The stock exchange safeguards interests of investors through

strict enforcement of rules and regulationsBenefits to the company4. A company whose shares quoted on stock exchange they

enjoy better reputation and credit.2. The market for the shares of such a company is naturally

widened.3. The market price of securities is likely to be higher in relation

to its earnings, dividends and property values. This raises the bargaining power of the company in the event of a takeover, merger or amalgamation.

Risk Factors• Risk factors are the same associated with any of the stock exchange in

the world. Markets can turn volatile at any point of time

REPORT

DO YOU INVEST IN STOCK MARKRT

YES33%

NO67%

Column1

YES NO

ARE YOU LONG-TERM OR SHORT TERM INVESTOR?

LONG-TERM47%

SHORT-TERM53%

Column1

LONG-TERM SHORT-TERM

DO YOU HAVE A ONLINE TRADING ACCOUNT

YES45%

NO55%

Column1

YES NO

SARES/EQUITY MUTUAL FUNDS

SHARES45%

MUTUAL FUNDS

55%

Sales

SHARES MUTUAL FUNDS

TEAM ANALYSISthere is risk involving in investing in stock marketBut when we take data of last 10 and five years stock market is performed than fixed depositsLast five years-11.8% p.aLast 10 years-10.9%So investing in long-term will always helps you to get more moneyMost of the small and mid investors are moving to mutual funds than directly investing in stocks, as in mutual funds have diversificationIn a country like use most of the saving products are stocks, mutual funds, annuity etcBut in India still most of savings are in banks and post offices

CONCLUTION