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.

Who is he ?

The Indian Warren buffet.

Mr. RakeshJhunjhunwala

Smartest investor

Who is he?

He is a Gujarati Stockbroker

He is ketanparikh (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

Raising capital for businesses.

Corporate governance

Creating investment opportunities for small investors.

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 Theprice 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 members & authorized clerks can

enter

Benefits to the investor

Quick payment of money

Fair prices

simple procedure of buying & selling

Benefits to the company

Smaller & less liquid companies

New shares at lowest cost

Helps to create market

National Stock Exchange (NSE)

National Stock Exchange in 1992.

• Wholesale debt market and

• Capital market.

Trading at NSE can be classified under two broad categories:

• (a) Trading members and

• (b) Participants.

There are two kinds of players in NSE:

Recompenses

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.

Greater operational efficiency.

BOMBAY STOCK EXCHANGE• 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:

long delays

lack of transparency

price rigging

insider trading.

Objectives of measures:

Effective control – Stock Exchange.

Enhance the transparency –Increased information flow.

Protect the investors

Check insider trading

Improve operational efficiency of stock exchange

Healthy development of capital market

Free Pricing

Introduction to Book

building in 1995

Electronic Trading

Advantages:

• Transparency

• efficient price discovery

• reduction in transaction cost.

Instruments and Market Participants

Improvements in Trading, Clearing and Settlement

Process

Increased Dematerializa

tion

Important measures of reform and development are:

Near Elimination of Counter-Party Risk:

Circuit Breakers/Price bands:

Structure of Informational Flows:

Emphasis on Fair Trading Practices

Increasing Integration of Various Segments of Securities

Markets:

• Positive impact on the volatility, liquidity and transaction cost.

The impact of the Changing Structure

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 joined 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.