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Presentation On Stock Market

When companies need to raise funds for growth, they issue stock shares to investors. Investors receive partial ownership of the company in exchange. Stock shares are traded on stock exchanges, the major ones in India being the Bombay Stock Exchange and National Stock Exchange. These exchanges list many of the largest companies and provide a platform for investors to buy and sell shares. The Securities and Exchange Board of India regulates the stock markets and issues rules to promote fair and transparent trading.

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sunil pancholi
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41K views

Presentation On Stock Market

When companies need to raise funds for growth, they issue stock shares to investors. Investors receive partial ownership of the company in exchange. Stock shares are traded on stock exchanges, the major ones in India being the Bombay Stock Exchange and National Stock Exchange. These exchanges list many of the largest companies and provide a platform for investors to buy and sell shares. The Securities and Exchange Board of India regulates the stock markets and issues rules to promote fair and transparent trading.

Uploaded by

sunil pancholi
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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A EASY WAY TO EARN THE MONEY @ A EASY WAY TO LOSE

THE MONEY
How Companies Raise The
Capital
 By following mean’s
 Debentures
 Equity
 Loan’s
Why Companies Issue
Stock?
When a company would like to grow, it
issues stocks to raise funds and pay
for ongoing business activities
 It is popular because:
 The company does not have to repay the
money
 Paying dividends is optional
 Dividends are distributions of earnings
paid to stockholders
What is a Stock?
 Stock is a share in the ownership of a
company.
It represents a claim on the
company's assets and earnings

 Whether you say shares, equity or


stock, it all means the same thing.
Types of share

Four types of share’s

 Ordinary
 Preference
 Cumulative preference
 Redeemable
What is a stock
market?
Place where business of buying and
selling stock takes place

 The stock market is not a specific


place, though some people use the
term "Dalaal Street”
Market Segments

 Primary market
-Channel for creation of new
securities

 Secondary market
-The new securities issued in the
primary
market are traded the secondary
market
Stock exchange world
wide
 New York Stock Exchange - United States
 NASDAQ (National Association of Security Dealers
Automated Quotations) - United States
 Shanghai Stock Exchange - China
 London Stock Exchange - UK
Stock exchange in India

 The Bombay Stock Exchange (BSE)


 National Stock Exchange of India Ltd
(NSE)
Bombay Stock Exchange
(BSE)
 Following is the timeline on
the rise and rise of the
Sensex through Indian stock
market history.

 1830's Business on
corporate stocks and shares
in Bank and Cotton presses
started in Bombay.

 1860-1865 Cotton price


bubble as a result of the
American Civil War

 1870 - 90's Sharp increase


in share prices of jute
industries followed by a
boom in tea stocks and coal

 1978-79 Base year of


Sensex, defined to be 100.
National Stock Exchange
(NIFTY)
 November 1992 as
a tax-paying
company
 In April 1993, it
was recognized as
a stock exchange.
INDEX

 SENSEX

 Sensex is an index, an index is basically an


indicator.

 It gives you a general idea about whether


most of the stocks have gone up or most of
the stocks have gone down. The sensex is an
indicator of all the prices of the major
companies of the BSE(Bombay stock
exchange)
NIFTY(Nifty Fifty)

 Nifty is an indicator of all the major companies


of NSE.

 The Nifty index is a composite of the top 50


stocks listed on the National stock exchange.
It is a simplified tool which helps investors &
ordinary people alike, understand what
happens in the stock market & by extension,
the economy.
Market Timings

Trading on the equities segment takes place on


all days of the week (except Saturdays and
Sundays and holidays declared by the
exchange in advance)

The market timings of the equities segment


are:

Normal market open : 09:55 hours


Normal market close : 15:30 hours

The closing session is held between 15.50


hours and 16.00 hours in NSE and 15.40 hours
and 16.00 hours in BSE
Trading on BSE and NSE

 BSE and NSE provide trading facility


on
two segments ,which are
- Cash Segment and
- Derivative Segment
 NSE also has another segment called
WDM,
Wholesale Debt Market.
NEAT- Cash
NEAT-F&O
Circuit Breakers
 An index based market-wide circuit breaker system
applies at three stages of the index movement either
way at 10%, 15% and 20%.

 The breakers are triggered by movement of either S&P


CNX Nifty or Sensex, whichever is breached earlier

As an additional measure of safety, individual scrip-wise


price bands has been fixed as below:
 Daily price bands of 2% (either way) on a set of
specified securities
 Daily price bands of 5% (either way) on a set of
specified securities
 Daily price bands of 10% (either way) on another set of
Securities and Exchange
Board of India (SEBI)
 SEBI is the
Regulator for the
Securities Market
in India.
 Originally set up
by the
Government of India
in 1988, it
acquired
statutory form in
1992.
Functions and
Responsibilities
 SEBI has to(SEBI)
be responsive to the
needs of three groups, which
constitute the market:
 the issuers of securities
 the investors
 the market intermediaries.
ISSUES

 The way to invite share capital from


the public is through a PUBLIC ISSUE
Types Of Issues

ISSUES

Public Rights Preferential

IPO FPO

Fresh Issues Offer for sale


How to Start?

 Open Demat A/c.


 Open Trading A/c.
How the Market Work
NSE

Broker
Broker

Public Public

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