STOCK MARKET

INDUSTRY

Presented By:
Nikhilkumar Tejani
 Introduction
Stock
market ?
• Organized market
• Association of stock
brokers
• Stocks bought or sold
• Secondary market
• 23 Stock Exchanges
 Country Turnover And Market
Capitalization
DEVELOPED ECONOMIES DEVELOPING ECONOMIES

Source: NSEINDIA Source: NSEINDIA

 Overview
• Public companies
• A vital part of an economy

or the economic system of a

country
• Growth and development of
a company that wants to
expand
 FUNCTIONS OF STOCK
EXCHANGES
• Provides ready and continuous market
• Provides information about prices and sales
• Barometer of economic and business conditions
ROLE OF STOCK EXCHANGES

• Raising capital for businesses

• Facilitating company growth

• Creating investment opportunities

for small investors
• Government capital-raising for

development projects
MAJOR RECOGNIZED STOCK EXCHANGES
(Data as on 31st Dec 2009)
Economy Stock Exchange
Australia Australian Securities Exchange
Brazil BM&F Bovespa
Canada Toronto Stock Exchange
China Shanghai Stock Exchange
China Shenzhen Stock Exchange
Europe Euro next
Germany Deutsche Börse
Hong Kong Hong Kong Stock Exchange
India National Stock Exchange of India
India Bombay Stock Exchange
Italy Borsa Italiana
Japan Tokyo Stock Exchange
Korea Korea Exchange
Nordic Countries NASDAQ OMX Nordic Exchange
South Africa JSE Limited
Spain BME Spanish Exchanges
Switzerland SIX Swiss Exchange
Taiwan Taiwan Stock Exchange
United Kingdom London Stock Exchange
United States NASDAQ
United States New York Stock Exchange http://en.wikipedia.org/wiki/Stock_exchange
10 major Global Stock Exchanges
(market capitalization as on August 2009)
Capitalization
Stock Exchange
(US$ mn)
Johannesburg Securities Exchange 690,797.5
NASDAQ 2,847,535.2
São Paulo Stock Exchange 1,032,518.4
Toronto Stock Exchange 1,432,877.0
New York Stock Exchange 10,842,001.9
Australian Securities Exchange 1,066,513.2
Bombay Stock Exchange 1,082,572.0
Hong Kong Stock Exchange 1,945,517.7
Korea Exchange 727,125.3
National Stock Exchange of India 1,019,109.0
 ADVANTAGES OF STOCK
EXCHANGES
• To the Companies

• To the Investors

• To the Society
 LIMITATIONS OF STOCK
EXCHANGES
• Excessive speculation

• To unpredictable political, social and

economic factors
Five Force Model on Stock Market
Industry
Threat
of New
Entrants

Bargaining Competitive Bargaining

Rivalry
Power of Within the
Power of
Suppliers Industry Buyers

Threat
of Sub-
stitutes