07-08-2012, 01:46 PM
Report on Stock Market
1Stock Market.pptx (Size: 1.67 MB / Downloads: 40)
What is Stock Market ?
A Stock Market also known as a stock exchange is a physical place, where brokers gather to buy and sell stocks at agreed prices.
It is the place where trading of shares is done in terms of sale and purchase through middlemen known as brokers.
It provides companies access to capital and allows investors to own companies and participate in economic growth.
It is the outcome of Industrialisation revolution.
Backbone of the economy of many countries.
Need of Stock Market
Raising of capital for businesses
Provides small firms with the capital for economic growth without taking loans.
International trade & Global transactions
Provides international platform for investment and allows to trade across the globe.
Terms related to Stock Market
Share : A share represents an investor's ownership in a “share”of the profits, losses, and assets of a company. It is created when a business carves itself into pieces and sells them to investors in exchange for cash.
Shareholder: Any person, company, or other institution that owns at least one share in a company.
Underwriter: The financial institution or investment bank that is doing all of the paperwork and orchestrating a company's IPO.It determines the price of the shares in the stock market. For example, JP Morgan, Kotak Mahendra, etc.
IPO: Short for Initial Public Offering. An IPO is when a company sells stock in itself for the first time.
Dividends: the profit “share” that each shareholder gets.
Bombay stock exchange
Bombay Stock Exchange is located on Dalal Street, Mumbai
It is the 6th largest stock exchange in Asia and the 14th largest in the world with US$1 trillion capital
The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia.
In 1992, NSE was incorporated as a tax paying company unlike other stock exchange in the country.
National stock exchange
NSE is a stock exchange located at Mumbai, Maharashtra
It is the 16th largest stock exchange in the world by market capitalization
The NSE's key index is the S&P CNX Nifty known as the NSE NIFTY
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 exchangein the world with a recorded growth of 16.6%
It has volume of capital more than twice of BSE
Major advantages of Free-float Methodology
The market capitalization of each company in a free-float index is reduced to the extent of its readily available shares in the market.
Globally, the Free-float Methodology is considered to be an industry best practice. It allows to compare two stock exchanges of different countries
The index is the reflection of the economy and the liquid assets of a company or an entire country