stock exchange project
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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.
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