INSTITUTE FOR EXCELLENCE IN HIGHER EDUCATION

DEPARTMENT OF BACHELOR OF BUSINESS ADMINISTRATION

PROJECT
ON
“WEALTH MANAGEMNET
AND
STOCKS”

UNDER THE GUIDANCE OF :-

DR. SHARDA GANGWAR MAM(HOD)

DIRECTOR OF IEHE :- SUBMITTED BY:-

DR. PRAGYESH AGRAWAL AMBRISH SHUKLA
 ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an

opportunity to thank all the persons who
contributed directly or indirectly for the
successful completion of project on “WEALTH
MANAGEMENT”
I wish to express my gratitude to my respected
teachers , HOD OF OUR DEPARTMENT
DR. SHARDA GANGWAR MAM and respected
Director PRAGYESH AGRAWAL SIR for giving
mean opportunity to be a part of their esteem
organization and enhance my knowledge. They
provided me with their assistance and support
whenever needed, which has been instrumental
in completion of this project. I am thankful to
them, for their support and encouragement
throughout the tenure of the project
What Is Wealth Management?

Wealth management is an investment advisory service

that combines other financial services to address the
needs of affluent clients. Using a consultative process,
the advisor gleans information about the client’s wants
and specific situation, then tailors a personalized
strategy that uses a range of financial products and
services.
Often, a holistic approach is taken within wealth
management. To meet the complex needs of a client, a
broad range of services—such as investment
advice, estate planning, accounting, retirement, and tax
services—may be provided. While fee structures vary
across comprehensive wealth management services ,
typically, fees are based on a client’s assets under
management (AUM).

KEY TAKEAWAYS

 Wealth management is an investment advisory service that

combines other financial services to address the needs of affluent
clients.
 A wealth management advisor is a high-level professional who
manages an affluent client’s wealth holistically, typically for one set
fee.
 This service is usually appropriate for wealthy individuals with a
broad array of diverse needs.
Understanding Wealth Management

Wealth management is more than just investment advice. It can

encompass all parts of a person’s financial life. Instead of attempting to
integrate pieces of advice and various products from multiple
professionals, high net worth individuals may be more likely to benefit from
an integrated approach. In this method, a wealth manager coordinates the
services needed to manage their clients’ assets, along with creating a
strategic plan for their current and future needs—whether it is will and trust
services or business succession plans.

Many wealth managers can provide services in any aspect of the financial
field, but some choose to specialize in particular areas, such as cross-
border wealth management. This may be based on the expertise of a
specific wealth manager, or the primary focus of the business within which
the wealth manager operates.

In certain instances, a wealth management advisor may have to

coordinate input from outside financial experts, as well as the client’s own
service professionals (for example, an attorney or accountant) to craft the
optimal strategy to benefit the client. Some wealth managers also provide
banking services or advice on philanthropic activities.

Wealth Management Example

Generally speaking, wealth management offices have a team of experts

and professionals available to provide advice across different fields. For
instance, consider a client who has $2 million in investable assets—in
addition to a trust for their grandchildren—and a partner who has recently
passed away. A wealth management office would not only invest these
funds in a discretionary account but also provide will and trust services
required for tax minimization and estate planning.

Wealth management advisors in the direct employ of an investment firm

may have more knowledge in the area of investment strategy, while those
who work for a large bank may focus on the management of trusts and
available credit options, overall estate planning, or insurance options. In
short, expertise may vary across different firms.
Wealth Management Business Structures

Wealth managers may work as part of either a small-scale business or a

larger firm, one generally associated with the finance industry. Depending
on the business, wealth managers may function under different titles,
including financial consultant or financial advisor. A client may receive
services from a single designated wealth manager or may have access to
members of a specified wealth management team.
What Is the Stock Market?

The term stock market refers to several exchanges in which

shares of publicly held companies are bought and sold. Such
financial activities are conducted through formal exchanges
and via over-the-counter (OTC) marketplaces that operate
under a defined set of regulations.

Both “stock market” and “stock exchange” are often used

interchangeably. Traders in the stock market buy or sell shares
on one or more of the stock exchanges that are part of the
overall stock market.

The leading U.S. stock exchanges include the New York Stock
Exchange (NYSE) and the Nasdaq.

KEY TAKEAWAYS

 Stock markets are venues where buyers and sellers meet

to exchange equity shares of public corporations.
 Stock markets are components of a free-market economy
because they enable democratized access to investor
trading and exchange of capital.
 Stock markets create efficient price discovery and efficient
dealing.
 The U.S. stock market is regulated by the Securities and
Exchange Commission (SEC) and local regulatory
bodies.12
Understanding the Stock Market

The stock market allows buyers and sellers of securities to

meet, interact, and transact. The markets allow for price
discovery for shares of corporations and serve as a barometer
for the overall economy. Buyers and sellers are assured of a
fair price, high degree of liquidity, and transparency as market
participants compete in the open market.

The first stock market was the London Stock Exchange which
began in a coffeehouse, where traders met to exchange
shares, in 1773.3 The first stock exchange in the United States
began in Philadelphia in 1790.4 The Buttonwood Agreement,
so named because it was signed under a buttonwood tree,
marked the beginning of New York’s Wall Street in 1792. The
agreement was signed by 24 traders and was the first
American organization of its kind to trade in securities. The
traders renamed their venture the New York Stock and
Exchange Board in 1817.5

A stock market is a regulated and controlled environment. In

the United States, the main regulators include the Securities
and Exchange Commission (SEC) and the Financial Industry
Regulatory Authority (FINRA).21

The earliest stock markets issued and dealt in paper-based

physical share certificates. Today, stock markets operate
electronically.

Though it is called a stock market, other securities, such

as exchange-traded funds (ETFs) are also traded in the stock
market.
How the Stock Market Works

Stock markets provide a secure and regulated environment where

market participants can transact in shares and other eligible financial
instruments with confidence, with zero to low operational risk. Operating
under the defined rules as stated by the regulator, the stock markets act
as primary markets and secondary markets.6

As a primary market, the stock market allows companies to issue and

sell their shares to the public for the first time through the process of
an initial public offering (IPO). This activity helps companies raise
necessary capital from investors.

A company divides itself into several shares and sells some of those
shares to the public at a price per share.6 To facilitate this process, a
company needs a marketplace where these shares can be sold and this
is achieved by the stock market. A listed company may also offer new,
additional shares through other offerings at a later stage, such as
through rights issues or follow-on offerings. They may even buy
back or delist their shares.

Investors will own company shares in the expectation that share value
will rise or that they will receive dividend payments or both. The stock
exchange acts as a facilitator for this capital-raising process and
receives a fee for its services from the company and its financial
partners.6Using the stock exchanges, investors can also buy and sell
securities they already own in what is called the secondary market.

The stock market or exchange maintains various market-level and

sector-specific indicators, like the S&P (Standard & Poor’s) 500
index and the Nasdaq 100 index, which provide a measure to track the
movement of the overall market.

Following an IPO, the stock exchange serves as a trading platform for

buying and selling the outstanding shares. This constitutes the
secondary market. The stock exchange earns a fee for every trade that
occurs on its platform during secondary market activity.6
What Are the Functions of a Stock Market?

The stock market ensures price

transparency, liquidity, price discovery, and fair dealings
in trading activities.
The stock market guarantees all interested market
participants have access to data for all buy and sell
orders, thereby helping in the fair and transparent
pricing of securities. The market also ensures efficient
matching of appropriate buy and sell orders.7
Stock markets need to support price discovery where
the price of any stock is determined collectively by all of
its buyers and sellers. Those qualified and willing to
trade should get instant access to place orders and the
market ensures that the orders are executed at a fair
price.
Traders on the stock market include market
makers, investors, traders, speculators, and hedgers.
An investor may buy stocks and hold them for the long
term, while a trader may enter and exit a position within
seconds. A market maker provides necessary liquidity in
the market, while a hedger may trade in derivatives.
How Stock Markets Are Regulated

Most nations have a stock market, and each is

regulated by a local financial regulator or
monetary authority, or institute. The SEC is the
regulatory body charged with overseeing the U.S.
stock market.
The SEC is a federal agency that works
independently of the government and without
political pressure. The mission of the SEC is
stated as “protecting investors, maintaining fair,
orderly, and efficient markets, and facilitating
capital formation.”8
Companies listed on the stock market exchanges
are regulated, and their dealings are monitored by
the SEC. In addition, the exchanges set certain
requirements such as mandating timely filing of
quarterly financial reports and instant reporting of
relevant corporate developments, to ensure that
all market participants are equally informed.
Failure to adhere to the regulations can lead to
suspension of trading and other disciplinary
measures.

What Is the Significance of the Stock Market?

The stock market is a component of a free-market

economy. It allows companies to raise money by
offering stock shares and corporate bonds and allows
investors to participate in the financial achievements of
the companies, make profits through capital gains, and
earn income through dividends. The stock market works
as a platform through which savings and investments of
individuals are efficiently channeled into productive
investment opportunities and add to the capital
formation and economic growth of the country.

What Is an Alternate Trading System?

Alternative trading systems are venues for

matching large buy and sell transactions and are
not regulated like exchanges. Dark pools and
many cryptocurrency exchanges are private
exchanges or forums for securities and currency
trading and operate within private groups.

Who Helps an Investor Trade on the Stock Market?

Stockbrokers act as intermediaries between the stock

exchanges and the investors by buying and selling
stocks and portfolio managers are professionals who
invest portfolios, or collections of securities, for
clients. Investment bankers represent companies in
various capacities, such as private companies that want
to go public via an IPO or companies that are involved
in pending mergers and acquisitions.
25 Stock Market Terms That You
Should Know

 Annual Report

An annual report is a yearly report that

every company prepares to impress the
shareholders of their company. The annual
report consists of lots of information about a
company, from cash flow to management
strategy.
Several people read the annual report to
look at the company’s solvency and judge
their financial position.

 Arbitrage

Arbitrage means purchasing something like

foreign money from one place and selling it
 to another place where the price of the
foreign money is higher than buying place.
For example: if stock is trading out $20 from
one Market and $21 on other markets, the
trader must buy shares at $20 from one
Market and sell them for $21 on the different
Market, getting the difference amount
between both the markets price.
 Averaging Down

Averaging down means the investor

buys more stock when the price of a
particular stock goes down. This
decreases the average purchase price
of your specific stock.
Several investors use this strategy if
they feel that consensus about a
specific company is wrong, so they
expect the stock price to jump back
and earn profit.

 Bear Market

It is a market where investors talk

about the stock market performing in a
downward trend, or it is a certain
 period where the prices of multiple
stocks are falling.

 Broker

A broker is a person who buys and sells

investment on your behalf and, in
exchange, takes a certain amount of
money called commission or fee.
 Dividend

A dividend means when the company

earns profit, a particular portion of their
earnings is distributed to shareholders
or the people who own the company
stock on a quarterly or annual basis.
Not every company pays dividends,
and if you’re after penny stocks, you’ll
likely not get any dividends.

 Sensex

Sensex is a figure that indicates all the

relative share prices that are listed on
the Bombay Stock Exchange.
 Nifty

The Nifty 50 Index, called the National

Stock Exchange of India, is the primary
and brad based stock market index for
the equity market of India.
The Nifty 50 consists of 50 Indian
company stocks in 12 different sectors,
and it is one out of two stock indices
that are mainly used in the stock
market.
 Quote

The stock’s latest trading prices

contain information that is given
in a quote. Sometimes, the
quote is delayed by 20 minutes
unless you’re an actual
stockbroker working in an
existing trading platform.

 Share Market
 A share market is a market in which
shares of a particular company are
purchased and sold. The stock
market is a definite example of a
share market.

 Bull Market

It is a market where investors talk

about the stock market performing
in an upward trend, or it is a certain
period where the prices of multiple
stocks are increasing.
 Bid Price

A bid price is nothing but the

amount that you desire to pay for a
particular share.

 Ask Price

Ask price is a specific price at which

you are looking to sell a share.
 Order

Order means the purpose of buying

and selling shares in a given range
of price. For example, you have
placed an order to buy 200 shares
from company A, at a maximum
price of Rs 50 per share.

 Trading Volume

Trading volume means the number

of shares that are traded on a
particular day.

 Market Capitalisation

It simply means the value of a

company according to the stock
 market. That is the current value of
all the shares of a company put
together.

 Intra-Day Trading

Intraday trading means buying and

selling your desired stocks on the
same day so that before trading
hours get over, all your trading
positions will be closed within the
same day.

 Market Order

A market order is an order to buy

and sell shares at the market price.
Several investors don’t go with this
Order because the trade price in
the market order remains volatile.

 Day Order
 A day order is an order that
remains good till the end of the
trading day. If the Order does not
perform by the time the market
closes, the Order will be canceled.

 Limit Order

A limit order is to buy shares below

a fixed price and sell shares above
a fixed price. It is advisable to use a
limit order to trade shares.

 Portfolio

The portfolio is a collection of all

the investments that an investor
has made right from purchasing a
share for the first time.

 Liquidity
 Liquidity means how stocks can be
sold off quickly. Shares that get
sold consist of high trade volumes
quickly and are called highly liquid.

 IPO

IPO means a private company is

turning into a public company by
issuing its shares to the public for
the first time. In the case of an IPO,
the investor can buy the shares
directly from the company.

 Secondary Sharing

It is another offering used to sell

more stocks and gain more money
from the public.

 Going Long
 Betting on the price of a stock that
will increase so that you can buy at
a low price and sell at a high price.

Major stock exchanges in India

There are two major types of Stock Exchanges in India,

namely the –

Bombay Stock Exchange (BSE):

This particular stock exchange was established in 1875
in Mumbai at Dalal Street. It renowned as the oldest
stock exchange not just in Asia and is the ‘World’s 10th
largest Stock Exchange’.

The estimated market capitalisation of Bombay Stock

Exchange as of April stands at $ 4.9 Trillion and has
around 6000 companies publicly listed under it. The
performance of BSE is measured by the Sensex, and it
reached its all-time high in June in 2019, when it
touched 40312.07.

National Stock Exchange (NSE):

The NSE was established in 1992 in Mumbai and is

accredited as the pioneer among the demutualised
electronic stock exchange markets in India. This stock
exchange market was established with the objective to
eliminate the monopolistic impact of the Bombay Stock
exchange in the Indian stock market.

The estimated market capitalisation of National Stock

Exchange as of March 2016 was US$ 4.1 trillion and
was acclaimed as the 12th largest stock exchange in
the world. NIFTY 50 is NSE’s index, and it is extensively
used by investors across the globe to gauge the
performance of the Indian capital market.

Analysis of BSE and

NASDAQ
INTRODUCTION
Investing in listed securities is a popular avenue for
investors worldwide, with stock exchanges serving as the
epicenter of these financial activities. Among the plethora
of global stock exchanges, the Bombay Stock Exchange
(BSE) and the National Association of Securities Dealers
Automated Quotations (NASDAQ) stand out as key players,
each with its own unique characteristics and historical
significance. This comprehensive guide aims to delve into
the intricacies of these exchanges, shedding light on their
origins, trading processes, and key differentiators.

The Bombay Stock Exchange (BSE):

Established in 1875 in Mumbai, the BSE holds the
distinction of being the oldest stock exchange in India and
Asia. Originally known as the Native Share & Stock Brokers’
Association, it officially became the BSE in 2017.
Premchand Roychand, its founder, laid the foundation for
what is now a cornerstone of India's financial landscape.
BSE's flagship index, the S&P BSE SENSEX, is a widely
tracked benchmark, representing the 30 most actively
traded stocks across various sectors.

BSE's transition from open floor trading to electronic

platforms in 1995 marked a pivotal moment, leading to an
era of increased efficiency, faster execution, and minimal
errors. The exchange boasts a remarkable trading speed of
6 microseconds, making it the fastest stock exchange
globally. With over 5,500 listed companies, BSE has a
market capitalization of approximately $3 trillion as of
March 2023.

NASDAQ: Pioneering Electronic Trading in the US:

In contrast, the NASDAQ Stock Market, established in 1971,

emerged as a trailblazer in American stock exchanges. Its
acronym, NASDAQ, stands for the National Association of
Securities Dealers Automated Quotations. Unlike BSE,
NASDAQ facilitated the remote trading of securities,
eliminating the need for in-person transactions. Noteworthy
global giants such as Google parent Alphabet, Meta
Platforms, Apple, Microsoft, Amazon, and Tesla are traded
on NASDAQ.

With a trading technology adopted by over 100 stock

exchanges in more than 50 countries, NASDAQ ranks as
the leading exchange in the United States by trading
volume. Since 2008, it has been an integral part of the S&P
500 Index. Key indices at NASDAQ include the NASDAQ
Composite, tracking changes in over 3,000 stocks, and the
NASDAQ 100, a capitalization-weighted index for the 100
most extensive stocks traded on the exchange.
Comparing BSE and NASDAQ:

Scope of Listed Companies:

BSE predominantly lists Indian companies, while NASDAQ
boasts a diverse international portfolio. This distinction
exposes BSE to the intensity of the Indian market, making
it susceptible to significant fluctuations based on local
events, whereas NASDAQ's global diversity offers a degree
of insulation from regional shocks.

Volatility:

The volatility of the Indian market, reflected in BSE,

contrasts with the relative stability of US markets, where
NASDAQ operates. As a result, stocks trading on the
NASDAQ are generally considered safer compared to those
on the BSE.
Indices:
BSE features a range of indices, such as S&P BSE SENSEX,
S&P BSE SmallCap, and S&P BSE MidCap. These serve as
benchmarks for market performance and are closely
monitored by investors. NASDAQ, on the other hand, relies
heavily on the NASDAQ Composite index, reflecting the
market capitalization of all common stocks listed on the
exchange.

Regulatory Authority:

While BSE operates under the regulatory framework set by

the Securities and Exchange Board of India (SEBI),
NASDAQ, on the other hand, adheres to the regulations
established by the Securities and Exchange Commission
(SEC) in the United States. This underscores the divergent
regulatory environments in which these exchanges
function.
Trading Processes:

Both the BSE and NASDAQ employ electronic trading

platforms that enable traders to execute transactions
efficiently. While BSE historically utilized an open outcry
system, the transition to electronic trading has enhanced
accessibility and transaction speed. Although the open
outcry system is no longer the primary method, some
traders still utilize the trading floor.
BIBLIOGRAPHY

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