05-11-2012, 01:29 PM
SHARE MARKET IN INDIA
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INTRODUCTION :
There are 23 stock exchanges in the India. Mumbai's (earlier known as Bombay), Bombay Stock Exchange is the largest, with over 6,000 stocks listed. The BSE accounts for over two thirds of the total trading volume in the country. Established in 1875, the exchange is also the oldest in Asia. Among the twenty-two Stock Exchanges recognised by the Government of India under the Securities Contracts (Regulation) Act, 1956, it was the first one to be recognised and it is the only one that had the privilege of getting permanent recognition ab-initio.
Name of Indian stock exchange:
1.Bombay stock exchange
2.National stock exchange(Mumbai)
3.Banglore stock exchange
4.Utter pradesh stock exchange(kanpur)
5.Magadh stock exchange(Patna)
6.Ahmedabad stock exchange
7.vadodara stock exchange(Baroda)
8.Bhubaneswar stock exchange
9.Calcutta stock exchange(kolkata)
10.madras stock exchange
NATIONAL STOCK EXCHANGE (NSE)
The National Stock Exchange (NSE), located in Bombay, is India's first debt market. It was set up in 1993 to encourage stock exchange reform through system modernization and competition. It opened for trading in mid-1994. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are, treasury bills, government security and bonds issued by public sector companies
The Organisation: The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing.
SPECULATION :
Definition : it involves the buying, holding, selling, short-term selling of stocks, bonds, commodities, currencies, collectibles or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via method like dividends or interest.
Kinds of speculation
Bull Market (Tejiwala): In case of that they purchase the shares at current prices to sell at a higher price in the near future and makes a profit if his expectations come true.he is also called a long buyer.
Bear Market (Mandiwala) : He sells security in the hope that he will be able to buy them back at lesser price.It is also called “short selling”.
Lame duck : When a bear has made contracts to sell securities,find it difficult to meet his commitment due to non-availability of security,they always struggling..
Stag : He is that type of speculator who applies for a large number of a shares in a new issue with the intention of selling them at a premium. He is bullish and very cautious.
KINDS OF PREF.SHAREHOLDER
1.Comulative shareholder: These shares are entitled to fixed dividends whether there are profits or loss. If profits are not sufficient to pay in a particular year then that will pay on next year.
2.Non cumulative pref.share: These shares cannot claim arrears of dividends of any year (if not paid due to insufficiency of profits ) out of profits of subsequent year.
3.Participating pref. Shares: These shares receives a fixed rate of dividend in priority to ordinary shares and further,the right to participate in balance of profits in an agreed proportion together with ordinary shares.
4.Redeemable pref.shares: These are shares which can be purchased back by the company.The company reserves its rights to call back or purchased these shares at any time .