STOCK EXCHANGE

• PRESENTED BY:

NAVNEET KUMAR

MBA- 098610

INTRODUCTION• A stock exchange is a corporation or mutual

organisation which provides “trading” facilities for stock brokers and traders, to trade stock and other securities.

stock exchange also provides facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of incomes and dividends.

a stock exchange is often the most important components of stock market.

SECURITIES

• Security is a fungiable and negotiable instruments representing financial value.

the securities traded on stock exchange includes, shares issued by companies and bonds and also mutual funds.

THE ROLE OF STOCK EXCHANGES

• Raising capital for business.• Mobilizing savings for investment.• Facilitating companies growth.• Profit sharing.• Creating investment opportunities for small

investors.• Government capital- raising for development

projects.• Barometer of the economy.

MAJOR STOCK EXCHANGES IN THE WORLD

• There are so many stock exchanges in the world, but the most important stock exchanges in the world are as:

LONDON STOCK EXCHANGE

• It is situated in Europe.

• Its market value is m$ 2560491.1.

• Its total share turnover is m$ 2321518.5.

SAO PAULO STOCK EXCHANGE

• It is situated in USA.

• Its market value is m$ 1032518.4.

• Its total share turnover is m$ 36195.0.

NEW YORK STOCK EXCHANGE

• It is situated in USA.• Its market value is m$

10842001.9.• Its total share turnover is

m$12158620.

TOKYO STOCK EXCHANGE

• It is situated in Japan.

• Its market value is m$ 3478602.5.

• Its total share turnover is m$ 2675983.3.

AUSTRALIAN STOCK EXCHANGE

• It is situated in Australia.

• Its market value is m$ 1066513.2.

• Its total share turnover is m$ 560912.8.

HONGKONG STOCK EXCHANGE

• It is situated in Singapore.

• Its market value is m$ 1945517.7.

• Its total share turnover is m$ 970227.6.

BOMBAY STOCK EXCHANGE

• It is situated in India.

• Its market value is m$ 1082572.0.

• Its total share turnover is m$ 171176.2.

SANGHAI STOCK EXCHANGE

• It is situated in China.• Its market value is m$

2142756.8.• Its total share turnover is m$

3315768.3.

• It is a set of conditions imposed by a given stock exchange upon companies that want to be listed. Such conditions sometimes includes minimum number of shares outstanding, minimum market capitalization, and minimum annual income.

Requirements varies by stock exchange.

LISTING REQUIREMENTS

STOCK EXCHANGES IN INDIA

• There are 23 stock exchanges in India.1. Bombay stock exchange.2. National stock exchange.3. Ahmedabad stock exchange.4. Banglore stock exchange.5. Bhubaneshwar stock exchange.6. Calcutta stock exchange.7. Cochin stock exchange.8. Coimbatore stock exchange.9. Delhi stock exchange.10. Guwahati stock exchange.11. Hyderabad stock exchange.

Jaipur stock exchange.Ludhiana stock exchange.Madhya pradesh stock exchange.Madras stock exchange.Magadh stock exchange.Manglore stock exchange.Meerut stock exchange,OTC exchange of India.Pune stock exchange.Saurashtra kutch stock exchange.Uttar pradesh stock exchange.Vadodara stock exchange.

• Out of 23 stock exchanges in India Bombay stock exchange and National stock exchange are the most important one. Because most of the top companies are listed in BSE and NSE.

BOMBAY STOCK EXCHANGE

• Location- Mumbai, India.

• Founded- 1875.

• Owner- Bombay stock exchange Ltd.

• CEO- Madhu kannan.

• Number of listing companies- 4700.

• Market capital- US $ 1.1 trillion(aug 2009)

• Indexes- BSE Sensex.

FEATURES OF BSE• It is the oldest stock exchange in Asia and has

the greatest number of listed companies in the world with 4700 listed as of august- 2007.

• It is located at Dalal street, Mumbai, India.• On Dec-31 2007, the equity market

capitalization of the companies listed on the BSE was US $1.79 trillion making the largest stock exchanges in south Asia and 12 largest in the world.

• The BSE Sensex, also called “BSE 30” is widely used marketing index in India and Asia.

• BSE is the first stock exchange in the country which obtained permanent recognition( in 1956) from the Govt. of India under the securities contract act 1956.

• BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives.

• BSE has always been at par with the internationals standards.

• The system and processes are designed to safeguard market integrity and enhance transparency in operations.

• BSE is the first exchange in India and second in the World to obtain an ISO 9001-2000 certification.

• BSE has become the first national level stock exchange to launch its website in Gujrati and Hindi to reach out to a larger number of investors.

HOURS OF OPERATION• Beginning of the day session- 8:00-9:00.• Login session- 9:00-9:30.• Trading session- 9:55-15:30.• Position transfer session- 15:30-15:50• Closing session- 15:50-16:05• Option exercise session- 16:05-16:35• Margin session- 16:35-16:50• Query session- 16:50-17:35• End of day session- 17:35. BSE normal trading sessions are on all days

of the weeks except Saturday and Sunday and also on holidays declared by the exchange in advance.

BSE also has a wide range of services to empower investors and

facilitate smooth transactions• INVESTORS SERVICES:

BSE was the first exchange in the country to provide an amount of Rs. 1 million towards the investors protection fund. It is the amount higher than that of any exchange in the country. BSE has launched a nation wide investers awareness program “ safe investing in the stock market” under which 264 programs were held in more than 200 cities.

• BSE ON-LINE TADING: It facilitates on-line screen based trading in

securities. BOLT is currently operating 25000 trader work stations located across over 359 cities in India.

• BSE WEBX.com: in Feb-2001, BSE introduced the world’s first

centralized exchange based internet trading system BSE WEBX.com. This initiative enables investors anywhere in the world to trade on the BSE platform.

• BSE TRAINING INSTITUTE: BTI imparts capital market training and

certification, in collaboration with reputed management institutes and universities. It offers over 40 courses on various aspects of capital market and financial sectors.

MAJOR FLUCTUATIONS IN SENSEX

• 13000, OCT-30,2006: Crossed the magical figure of 13000.

• 14000, Dec-5, 2006: Crossed the 14000 mark to touch 14038 point.

• 15000, july-6,2007: crossed the magical figure of 15000.

• 16000, sep-2007: yet achieved another milestone and crossed 16000 points within minutes after trading began.

• 17000, sep-26,2007: yet achieved another height during early morning trade and crossed 17000 points.

• 18000, oct-9,2007: crossed 18000 points and its only taken 8 days to cross.

• 19000,Oct-15,2007;cross the 19000 mark and gained the last thousand points in just four trading days.

• 20000,Oct-29,2007;crossed 20000 mark and gained thousand point in only ten trading days.

• 21000,Jan-8,2008;it crossed 21000 mark in intra-day trading after 19 trading session.

• 15200,Jun-13,2008;the sensex closed below 15200 mark. Indian market suffer with major downfall from january 21,2008.

• 14220,Jun-25,2008;• 12822,July-2,2008;the sensex hit on intra-day

low of 12,822.• 11801,Oct-6,2008.

• 10527,Oct-10,2008.

• 14284,May-18,2009;after the result of 15th Indian general election sensex gained 2100.79 points from the previous close of 12173,these creates a new history in indian market in the opening trade itself Sensex gained 15% from the previous day close.

NATIONAL STOCK EXCHANGE

• LOCATION - Mumbai,India.

• LISTED COMPANIES – 1016

• TRADING MEMBERS – 726

• OWNER – Owned by the group of leading financial institutions.

• INDEXES - NIFTY

FEATURES OF NSE• NSE is owned by the group of leading

financial institutions such as Indian Bank or Life Insurance Corporation of India.

• NSE in the totality de-mutualised exchange, the ownership as well as the management does not have right to trade on exchange. Only qualified traders can be involved in the securities trading.

• NSE is one of the few exchanges in the world trading all types of securities on the single platform.

• NSE of India Ltd. Provides its clients with a single,fully electronic trading platform that is operated through a V-SAT network.

• NSE uses the satellite communication system that connects traders from 345 Indian cities.

• The advance technologies enable up to 6 million traders to be operated daily on the NSE trading platform.

MAJOR COMPANIES UNDER NSE

• Bharat Forge

• Maruti Suzuki

• Mercator Lines

• On Mobile

• Oriental Bank of Commerce

• R System

• Salora International

• Strides Arcolab

SENSEX• The sensex is an index.

• The Sensex is an indicator of all the major companies of the BSE.

• If the sensex goes up,it means that the prices of the stocks of most of the major companies on BSE have gone up.

• If the sensex goes down this tells you that the stock price of most of the major stocks on the BSE have gone down.

SENSEX

NIFTY• NIFTY is a composite of the top 50 stocks listed

on the NSE, representing 24 different sectors of the company.

• It is a simplified tool that helps investors and ordinary people alike, to understand what is happening in the stock market and by extension, the company.

• If the NIFTY index performs well, it is signal that companies in India are performing well and consequently that the country is doing well.

• NIFTY is the flagship index of NSE, the third largest stock exchange in the world in terms of member of transaction.

CRITERIA FOR INCLUSION OF STOCK IN NIFTY

• Average market capitalisation of Rs 5000 million or more during the last six months.

NIFTY

BULL MARKET