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Stock Exchange

The document discusses stock exchanges, including their purpose, major examples, listing requirements, and details about the Bombay Stock Exchange and National Stock Exchange of India. Stock exchanges provide a platform for brokers and traders to buy and sell securities and facilitate raising capital for businesses.

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Anand Kumar
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180 views

Stock Exchange

The document discusses stock exchanges, including their purpose, major examples, listing requirements, and details about the Bombay Stock Exchange and National Stock Exchange of India. Stock exchanges provide a platform for brokers and traders to buy and sell securities and facilitate raising capital for businesses.

Uploaded by

Anand Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Meaning A stock exchange is an entity that provides services for stock brokers and traders to trade stocks , bonds

s and other securites . Stock exchanges also provides facilities for issue and redemption of securities and other financial instruments. Securities traded on stock exchange include shares issued by companies, unit trusts, derivatives, pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it must be listed there.

The role of stock exchange


Raising capital for businesses. Mobilizing savings for investment. Facilitating company growth. Profit sharing. Corporate governance. Creating investment opportunities for small investors. Govt. capital raising for development projects. Barometer of the economy.

Major stock exchanges


New-York stock exchange(New-York city) London stock exchange(City of London) Tokyo stock exchange(Tokyo) Bombay stock exchange(Mumbai) Australian securities exchange(Sydney) Mexican stock exchange(Mexic city)

Listing Requirements
Listing Requirements are the set of conditions

imposed by a given stock exchange upon companies that want to be listed on that exchange. Such conditions include minimum number of shares out standing, minimum market capitalization, and minimum annual incom

Requirements of stock exchange


Companies must meet an exchanges requirements to

have stocks and shares listed and traded there, but requirements vary by stock exchange:
Bombay stock exchange:- BSE has requirements for a

minimum market capitalization of rs 250 million and minimum public float equivalent to rs.100 million.

London stock exchange:- The main market of LSE has requirement for a minimum market capitalization(

700,000),3yrs of audited financial statements, minimum public float 25% and sufficient working capital for at least 12 month from the date of listing.

New-York stock exchange:- To be listed on the NYSE a co., must have issued at least a million share of stock worth at least $100 million and must have earned more than $10 million over the last 3yrs.

Bombay Stock Exchange


Location of Bombay stock exchange in India

Type : Stock Exchange


Location: Mumbai , India Founded:1875

Owner: Bombay Stock Exchange Ltd


Key People: Madhu Kanan(CEO&MD) Currency: Indian rupee()

No. of listings:5,085

The Bombay Stock Exchange (BSE) :


Bombay hare Bzar) (formerly, The Stock Exchange, Bombay) is a stock exchange located on Dalal street , Mumbai and is the oldest stock exchange in Asia The equity market capitalization of the companies listed on the BSE was US$1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest in the world . The BSE has the largest number of listed companies in the world. As of June 2011, there are over 5,085 listed Indian companies and over 8,196 scips on the stock exchange , the Bombay Stock Exchange has a significant trading volume. The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National stock exchange of India account for the majority of the equity trading in India. While both have similar total market capitalization (about USD 1.6 trillion), share volume in NSE is typically two times that of BSE.

National Stock Exchange


Location of National Stock Exchange in India Type: Stock Exchange Location: Mumbai, India. Founded:1992 Owner: National Stock Exchange of India Ltd Key People: Ravi Narain Currency: Indian rupee(Rs) No. of listings:1,552

The National Stock Exchange (NSE) is a stock exchange located at Mumbai, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization of around US$1.59 trillion and over 1,552 listings as of December 2010. Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalisation.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.

The National Stock Exchange of India was promoted by leading financial institions at the behest of the government of India and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the securities contract(regulation act) 1956.

NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.
The Capital Market(Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.

Markets
Currently, NSE has the following major segments of the capital market:

Equity Futures and Options Retail Debt Market Wholesale Debt Market Currency futures
MUTUAL FUND STOCKS LENDING & BORROWING

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