INTRODUCTION OF STOCK MARKET

A stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about $36.6 trillion at the beginning of October 2008. The total world derivatives market has been estimated at about $791 trillion face or nominal value, 11 times the size of the entire world economy. The value of the derivatives market, because it is stated in terms of notional values, cannot be directly compared to a stock or a fixed income security, which traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel' each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable derivative 'bet' on the event notoccurring). Many such relatively illiquid securities are valued as marked to model, rather than an actual market price. The stocks are listed and traded on stock exchanges which are entities of a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together. The largest stock market in the United States, by market capitalization, is the New York Stock Exchange (NYSE). In Canada, the largest stock market is the Toronto Stock Exchange. Major European examples of stock exchanges include the Amsterdam Stock Exchange,London Stock Exchange, Paris Bourse, and the Deutsche Brse (Frankfurt Stock Exchange). In Africa, examples include Nigerian Stock Exchange, JSE Limited, etc. Asian examples include the Singapore Exchange, the Tokyo Stock Exchange, the Hong Kong Stock Exchange, the Shanghai Stock Exchange, and the Bombay Stock Exchange. In Latin America, there are such exchanges as the BM&F Bovespaand the BMV. Australia has a national stock exchange, the Australian Securities Exchange, due to the size of its population. Market participants include individual retail investors, institutional investors such as mutual funds, banks, insurance companies and hedge funds, and also publicly traded corporations trading in their own shares. Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors.[4]

HISTORY
In 12th century France the courretiers de change were concerned with managing and regulating the debts of agricultural communities on behalf of the banks. Because these men also traded with debts, they could be called the first brokers. A common misbelief is that in late 13th century Brugescommodity traders gathered inside the house of a man called Van der Beurze, and in 1309 they became the "Brugse Beurse", institutionalizing what had been, until then, an informal meeting, but actually, the family Van der Beurze had a building in Antwerp where those gatherings occurred;[7] the Van der Beurze had Antwerp, as most of the merchants of that period, as their primary place for trading. The idea quickly spread around Flanders and neighboring counties and "Beurzen" soon opened in Ghent and Rotterdam. In the middle of the 13th century, Venetian bankers began to trade in government securities. In 1351 the Venetian government outlawed spreading rumors intended to lower the price of government funds. Bankers in Pisa, Verona, Genoa and Florence also began trading in government securities during the 14th century. This was only possible because these were independent city states not ruled by a duke but a council of influential citizens. Italian companies were also the first to issue shares. Companies in England and the Low Countries followed in the 16th century. The Dutch East India Company (founded in 1602) was the first joint-stock company to get a fixed capital stock and as a result, continuous trade in company stock occurred on the Amsterdam Exchange. Soon thereafter, a lively trade in various derivatives, among which options and repos, emerged on the Amsterdam market. Dutch traders also pioneered short selling - a practice which was banned by the Dutch authorities as early as 1610.[8] There are now stock markets in virtually every developed and most developing economies, with the world's largest markets being in the United States, United Kingdom, Japan, India, China, Canada, Germany (Frankfurt Stock Exchange), France, South Korea and theNetherlands.

ABOUT PROJECT
World-Stock-Exchanges.net features a list of world stock exchanges, securities commissions and other regulatory agencies, as well as stock market resources. Top 5 Stock Exchanges New York Stock Exchange (NYSE) - Headquartered in New York City. Market Capitalization (2011, USD Billions) 14,242; Trade Value (2011, USD Billions) 20,161.

The largest stock exchange in the world by both market capitalization and trade value. NYSE is the premier listing venue for the worlds leading large- and medium-sized companies. Operated by NYSE Euronext, the holding company created by the combination of NYSE Group, Inc. and Euronext N.V., NYSE offers a broad and growin array of financial products and services in cash equities, futures, options, exchange-traded products (ETPs), bonds, market data, and commercial technology solutions. Featuring more than 8000 listed issues it includes 90% of the Dow Jones Industrial Average and 82% of the S&P 500 stock market indexes volume. NASDAQ OMX - Headquartered in New York City. Market Capitalization (2011, USD Billions) 4,687; Trade Value (2011, USD Billions) 13,552.

Second largest stock exchange in the world by market capitalization and trade value. The exchange is owned by NASDAQ OMX Group which also owns and operates 24 markets, 3 clearinghouses and 5 central securities depositories supporting equities, options, fixed invome, derivatives, commodities, futures and structured products. It is a home to approximately 3,400

listed companies and its main index is the NASDAQ Composite, which has been published since its inception. Stock market is also followed by S&P 500 index. Tokyo Stock Exchange - Headquartered in Tokyo. Market Capitalization (2011, USD Billions) 3,325; Trade Value (2011, USD Billions) 3,972.

Third largest stock exchange market in the world by aggregate market capitalization of its listed companies. It had 2,292 companies which are separated into the First Section for large companies, the Second Section for mid-sized companies, and the Mothers section for high growth startup companies. The main indices tracking Tokyo Stock Exchange are the Nikkei 225 index of companies selected by the Nihon Keizai Shimbun, the TOPIX index based on the share prices of First Section companies, and the J30 index of large industrial companies. 94 domestic and 10 foreign securities companies participate in TSE trading. The London Stock Exchange and the Tokyo Stock Exchange are developing jointly traded products and share technology. London Stock Exchange - Headquartered in London. Market Capitalization (2011, USD Billions) 3,266; Trade Value (2011, USD Billions) 2,871.

Located in London City, it is the oldest and fourth-largest stock exchange in the world. The Exchange was founded in 1801 and its current premises are situated in Paternoster Square close to St Pauls Cathedral. It is the most international of all the worlds stock exchanges, with around 3,000 companies from over 70 countries admitted to trading on its markets. The London Stock Exchange runs several markets for listing, giving an opportunity for different sized companies to list. For the biggest companies exists the Premium Listed Main Market, while in terms of smaller

SMEs the Stock Exchange operates the Alternative Investment Market and for international companies that fall outside the EU, it operates the Depository Receipt scheme as a way of listing and raising capital. Shanghai Stock Exchange - Headquartered in Shanghai. Market Capitalization (2011, USD Billions) 2,357; Trade Value (2011, USD Billions) 3,658.

It is the worlds 5th largest stock market by market capitalization and one of the two stock exchanges operating independently in the Peoples Republic of China. Unlike the Hong Kong Stock Exchange, the SSE is not entirely open to foreign investors. The main reason is tight capital account controls by Chinese authorities. The securities listed at the SSE include the three main categories of stocks, bonds, and funds. Bonds traded on SSE include treasury bonds, corporate bonds, and convertible corporate bonds. The largest company in SSE is PetroChina (market value 3,656.20 billion). This is a list of active stock exchanges. Those futures exchanges that also offer trading insecurities besides trading in futures contracts are listed both here and the list of futures exchanges. Major Stock Exchanges (Top 20 by Market Capitalization) | as at 31 October 2012 (Monthly reports | World Federation of Exchanges)

Year-toStock Exchange Market Economy Headquarters Capitalization (USD Billions) date Trade Value (USD Billions)

Rank

Year-toStock Exchange Market Economy Headquarters Capitalization (USD Billions) date Trade Value (USD Billions)

Rank

United 1 NYSE Euronext States/ Europe New York City 14,085 12,693

NASDAQ OMX Group

United States/ Europe New York City 4,582 8,914

Tokyo Exchange

Stock

Japan

Tokyo

3,478

2,866

London Exchange

Stock

United Kingdom

London

3,396

1,890

Hong

Kong

Hong Kong

Stock Exchange

Hong Kong

2,831

913

Shanghai Exchange

Stock

China

Shanghai

2,547

2,176

Year-toStock Exchange Market Economy Headquarters Capitalization (USD Billions) date Trade Value (USD Billions)

Rank

TMX Group

Canada

Toronto

2,058

1,121

Deutsche Brse

Germany Frankfurt

1,486

1,101

Australian 9 Securities Exchange Australia Sydney 1,386 800

10

Bombay Exchange

Stock

India

Mumbai

1,263

93

National 11 Exchange India

Stock of India Mumbai 1,234 442

12

SIX Exchange

Swiss Switzerland

Zurich

1,233

502

13

BM&F Bovespa

Brazil

So Paulo

1,227

751

Year-toStock Exchange Market Economy Headquarters Capitalization (USD Billions) date Trade Value (USD Billions)

Rank

14

Korea Exchange

South Korea

Seoul

1,179

1,297

15

Shenzhen Stock Exchange

China

Shenzhen

1,150

2,007

16

BME

Spanish

Exchanges

Spain

Madrid

995

731

17

JSE Limited

South Africa

Johannesburg

903

287

18

Moscow Exchange

Russia

Moscow

825

300

19

Singapore Exchange

Singapore Singapore

765

215

20

Taiwan Exchange

Stock

Taiwan

Taipei

735

572

MISSION AND VISION

1. Strengthening the home market As the driving force behind a transparent Austrian capital market the Vienna Stock Exchange contributes substantially to its further development. Its efforts focus on constant work to ensure framework conditions supportive of the capital market as well as the admission and development of new products. Furthermore, it takes numerous measures to further improve investment culture in Austria and to internationally position a strong domestic capital market among foreign trading members and international investors.

The Vienna Stock Exchange contributes to the steady growth of supply of, and demand for, capital through its ongoing information and communications work on the national and international level, e.g. by acquiring new issuers, private and institutional investors, trading participants as well as data and index license customers. 2. Focus on Central and Eastern Europe (CEE) The Vienna Stock Exchange is the initiator and, just like the exchanges of Budapest, Ljubljana and Prague, a subsidiary of the CEE Stock Exchange Group (CEESEG), the largest exchange group in Central and Eastern Europe. The primary objective of the Group is to strengthen, advance and internationally position the regional capital markets of its member exchanges. The Vienna Stock Exchange is responsible for cross-border tasks and the coordination of international projects, and acts as the driver of further development. The Vienna Stock Exchange also collaborates with many exchanges mainly in the CEE region in the areas of index development, data vending and many other capital market projects.

OBJECTIVE OF THE PROJECT

1.To know about the Stock exchange Returns 2.To know about the Comparative analysis of stock Exchange Returns of Top most Developing and Developed countries. 3.To know about the policies of stock Exchange returns 4.To know about the Present conditions of Stock of Developed and Developed Countries.

STANDARD POSITION
The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional financial capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange affords the investors gives them the ability to quickly and easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate. Some companies actively increase liquidity by trading in their own shares. History has shown that the price of shares and other assets is an important part of the dynamics of economic activity, and can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often considered the primary indicator of a country's economic strength and development. Rising share prices, for instance, tend to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. Therefore, central banks tend to keep an eye on the control and behavior of the stock market and, in general, on the smooth operation of financial system functions. Financial stability is the raison d'tre of central banks. Exchanges also act as the clearinghouse for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that thecounterparty could default on the transaction. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as possibly employment. In this way the financial system is assumed to contribute to increased prosperity.

United States S&P stock market returns (assumes 2% annual dividend)

Years to December 31, Average 2012 Return %

Annual Average Return %

Compounded

Annual

15.5

15.5

10.9

11.6

4.3

10.1

10

8.8

7.3

15

6.5

5.9

20

10.0

6.4

30

11.6

7.3

40

10.1

8.0

50

10.0

8.1

60

10.5

8.2

RESEARCH METHODOLOGY
Since the study undertaken by me is related to the study of Stock Exchanges in World, the means adopted for collection of various facts and data were in the form of personal observation, directly interacting with the officers concerned and also directly interacting with the existing public. It was an exploratory research. Work is mainly emphasized on the primary data. Primary data are gathered form prescribed questionnaire and by personal interview and the secondary data are collected from different books and magazines.

Sources of Data collection There are two sources of data collection. They are: 1. 2. PRIMARY DATA SOURCE SECONDARY DATA SOURCE

The secondary data are those, which have already been collected by someone else thorough Books, Internet, Television, journals, Magazines, etc. On the other hand primary data does not exist here. The researcher has to gather primary data afresh for the specific study undertaken by him. Primary data has been collected here by questionnaire method and personal interview method is followed. Primary sources such as Interviews, Observation, and attending training and development classes. Secondary sources such as Booklets, Monthly journal, Magazines, Official files etc. Scope of the Study Each and every project study along with its certain objectives also have scope for future. And this scope in future gives to new researches a new need to research a new project with a new scope. Scope of the study not only consist one or two future business plan but sometime it also gives idea about a new business which becomes much more profitable for the researches then the older one.

Scope of the study could give the projected scenario for a new successful strategy with a proper implementation plan. Whatever scope I observed in my project are not exactly having all the features of the scope which I described above but also not lacking all the features. Research study could give an idea of network expansion for capturing more market and customer with better services and lower cost, with out compromising with quality. In future customer requirements could be added with the product and services for getting an edge over competitors. Consumer behavior could also be used for the purpose of launching a new product with extra benefits which are required by customers for their taste. Tools and Techniques As no study could be successfully completed without proper tools and techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer very frequently. And I am very thankful to all those tools for helping me a lot. Basic tools which I used for project from statistics are- Bar Charts - Pie charts - Tables bar charts and pie charts are really useful tools for every research to show the result in a well clear, ease and simple way. Because I used bar charts and pie charts in project for showing data in a systematic way, so it need not necessary for any observer to read all the theoretical detail, simple on seeing the charts any body could know that what is being said. Technological Tools Ms- Excel Ms-Access Ms-Word

MARKETING ANALYSIS
In the event of a default, confusion would be rampant as trading systems struggle to identify, transfer and settle bonds that have matured but have not been repaid. Interest rates would surge and investors would likely sell stocks and commodities as they fled risky assets, analysts said. But that doesn't mean investors would necessarily run to the safety of Treasuries. Many U.S. government bonds could be shunned as investors worry about which issues are in default - even longer-dated issues that could have a coupon payment due that would potentially be in jeopardy. A default could also trigger a wider paralysis in the financial system that could quite quickly stall the economy, as happened at the height of the financial crisis in September 2008. For starters, money market funds are not allowed to hold defaulted collateral. These funds pulled back on making loans in 2011, when the ceiling was last an issue, and some analysts fear this time could be worse, potentially creating broad funding problems and send the cost of borrowing in short-term markets, including those in repurchase agreements or loans based on Libor surging. The U.S. Treasury hit its $16.4 trillion debt ceiling - the legal amount it is allowed to borrow - on New Year's Eve. The Treasury Department will run short of funds as early as mid-February, so legislation is needed to increase the borrowing limit. This had been a formality for years but turned into a political standoff between congressional Republicans and the White House over government spending levels in the summer of 2011. The resulting battle roiled markets concerned about U.S. political gridlock and its impact on the economy. The likelihood of a default on U.S. Treasuries has in the past been seen as so low that many parts of the market fail to even account for it in planning and paperwork. For example, unlike other debt, such as corporate bonds, Treasuries documentation has no grace period to make up for missed interest or principal payments. Many banks and investors may not even have the systems needed to screen out which Treasuries have principal or interest payments due that are most at risk of not being paid.

"No one is going to build a system to assume you have a defaulted Treasury floating around there; it's not a baseline assumption," said Michael Cloherty, head of U.S. interest rate strategy at RBC Capital Markets in New York. Treasury bills maturing at the end of February and in March are most vulnerable to default, though analysts said hundreds of other issues also have coupon payments due at the end of February. Rates on some short-term debt maturing in that time have risen and now yield more than similar debt maturing in April, a sign that a dislocation has started. INTERCONNECTION AND CONTAGION The chain reaction from a potential default suggests a slow spread of damage through various parts of the banking system, particularly the $5 trillion repurchase agreement market, which many companies rely on for funds. The Treasury Market Practices Group (TMPG), a group of market participants, has been looking into operational challenges of a U.S. default since the 2011 fight. It noted that other major events such as a terrorist attack, a failure of trading or other operational systems, or a natural disaster could also delay a debt payment. One potential problem is that the New York Fed's Fedwire Securities Service, which is used to hold, transfer and settle Treasuries, would need some manual daily adjustments, as it otherwise can't transfer bonds that are past their maturity date, the group said in meeting minutes from last year. Other systems may have similar problems, it said. Treasuries are widely used to back loans in the repo, or repurchase agreement, market, and in privately traded derivatives and for a host of securities traded on exchanges. Ownership and possession of the bonds is transferred regularly as part of this collateralization process. But put sand in the gears of the transfers, and anarchy may ensue. After the September 2001 attacks on the World Trade Center and the Pentagon, market participants struggled to identify who their counterparties were in the repo market, and even had difficulty grasping whether their net Treasuries position was a long or short one, after trading records were destroyed.

The number of trade "fails," when the borrower doesn't supply Treasuries to settle a loan, surged in the weeks after the attacks, initially rising because of operational problems and then staying high as the cost of obtaining Treasuries to settle a loan was as expensive as the cost of allowing a fail. To resolve the issue, the Treasury held a special auction of 10-year notes to increase supply and help settle the loans. The U.S. has defaulted once before, in 1979, when lawmakers were blamed in part for allowing negotiations to go down to the wire before raising the debt ceiling. After that, back-office errors at the Treasury, caused the government to be late in redeeming three series of Treasuries bills, according to an academic paper by Terry Zivney and Richard Marcus published in the Financial Review in 1989. The failure caused rates to rise, and the government faced lawsuits from investors hurt by the delays in repaying the bonds, they said. Markets now are far more complicated. Battles over ownership, interest paid or owed and a host of other issues relating to the transfer of the securities would likely be mired in legal disputes. U.S. debt is also considerably higher, and there is greater foreign ownership of Treasuries. The economy is also more vulnerable, making the risk of a creditor exodus a far more damaging prospect for the country. "The minute we default, there would be a complete collapse in the bond market," said Peter Schiff, chief executive officer of Euro Pacific Capital and a critic of U.S. government spending habits. That would leave the U.S. struggling to refinance more than $4.6 trillion that come due within two years, including $3 trillion of Treasuries due to mature in 2013.

OVERVIEW OF STOCK MARKET

BBC Global 30 - world stock market index of 30 of the largest companies by stock market value in Europe, Asia and the Americas. iShares MSCI EAFE Index (EFA) - provides investment results generally equivalent to publicly traded securities in the European, Australasian and Far Eastern markets. Maintained by Morgan Stanley Capital International. MSCI World - free-float weighted equity index. Index includes stocks of all the developed markets. Common benchmark for world stock funds. S&P Global 1200 - global stocks index covering 31 countries and around 70 percent of global market capitalization. United States AMEX Composite - composite value of all of the stocks traded on the American Stock Exchange. Dow Jones Indexes - leading global index provider. Dow Jones Industrial Average - one of the most widely quoted of all the market indicators. Consists of 30 of the largest publicly traded firms in the U.S. Dow Jones Wilshire 5000 - designed to track the performance of all publicly traded companies based in the U.S. NASDAQ Composite - broad market index of all of the common stocks and similar securities traded on the NASDAQ stock market. NYSE Composite - covers all common stocks listed on the New York Stock Exchange. Russell Indexes - leading U.S. equity index family for institutional investors.

Russell 3000 Index - measures the performance of the largest 3000 U.S. companies representing approximately 98% of the investable U.S. equity market. S&P 500 - stock market index containing the stocks of 500 Large-Cap corporations. Comprises over 70% of the total market cap of all stocks traded in the U.S. Owned by Standard & Poor's. Africa Egypt Case 30 - index of the Cairo & Alexandria Stock Exchange; includes the top 30 companies in terms of liquidity and activity. Morocco MASI Index - stock index of the Casablanca Stock Exchange. South Africa Johannesburg All Share Index Asia and Pacific S&P ASIA 50 Australia All Ordinaries - index of shares listed on the Australian Stock Exchange (ASX). S&P/ASX 200 China SSE Composite - index of all listed stocks (A shares and B shares) at Shanghai Stock Exchange. Hong Kong

Hang Seng Indexes - record daily changes of the largest companies of the Hong Kong stock market (represent about 67% of capitalization of the Hong Kong Stock Exchange). India BSE SENSEX 30 - includes the 30 largest and most actively traded stocks on the Bombay Stock Exchange. S&P CNX Nifty - index for 50 large companies on the National Stock Exchange of India. Indonesia JSX Composite - index of all stocks traded on the Jakarta Stock Exchange. Japan Nikkei 225 - stock market index for the Tokyo Stock Exchange. Malaysia FTSE Bursa Malaysia Index New Zealand NZX 50 Pakistan KSE 100 - index acting as a benchmark to compare prices on the Karachi Stock Exchange. Philippines PSEi Index - index acting as a benchmark to compare prices on the Karachi Stock Exchange. Singapore ST Index

South Korea KOSPI - index of all common shares on the Korean Stock Exchanges. Taiwan TSEC - capitalization-weighted index of all listed common shares traded on the Taiwan Stock Exchange. Canada S&P/TSX Composite - index of the stock prices of the largest companies on Toronto Stock Exchange. Europe Dow Jones Euro Stoxx 50 - free-float market capitalization-weighted index of 50 Eurozone stocks. Provides a blue-chip representation of Supersector leaders in the Eurozone. FTSEurofirst 300 Index - free-float capitalization-weighted price index. Measures the performance of Europe's largest 300 companies by market capitalization. Covers 70% of Europe's market cap. OMX Baltic Index - covers stock exchanges in Estonia, Latvia and Lithuania. OMX Nordic 40 - market value-weighted index of the 40 most-traded stock classes of shares in Copenhagen, Helsinki, Reykjavik and Stockholm. S&P Europe 350 - free float market cap weighted index. Covers at least 70% of European equity market capitalization. Belgium BEL20 Czech Republic

CONSUMER BEHAVIOUR
From experience it is known that investors may 'temporarily' move financial prices away from their long term aggregate price 'trends'. (Positive or up trends are referred to as bull markets; negative or down trends are referred to as bear markets). Over-reactions may occurso that excessive optimism (euphoria) may drive prices unduly high or excessive pessimism may drive prices unduly low. Economists continue to debate whether financial markets are 'generally' efficient. According to one interpretation of the efficient-market hypothesis (EMH), only changes in fundamental factors, such as the outlook for margins, profits or dividends, ought to affect share prices beyond the short term, where random 'noise' in the system may prevail. (But this largely theoretic academic viewpointknown as 'hard' EMHalso predicts that little or no trading should take place, contrary to fact, since prices are already at or near equilibrium,The 'hard' efficient-market hypothesis is sorely tested and does not explain the cause of events such as the stock market crash in 1987, when the Dow Jones index plummeted 22.6 percentthe largest-ever one-day fall in the United States. This event demonstrated that share prices can fall dramatically even though, to this day, it is impossible to fix a generally agreed upon definite cause: a thorough search failed to detect any'reasonable' development that might have accounted for the crash. (But note that such events are predicted to occur strictly by chance, although very rarely.) It seems also to be the case more generally that many price movements (beyond that which are predicted to occur 'randomly') are not occasioned by new information; a study of the fifty largest one-day share price movements in the United States in the post-war period seems to confirm this. , a 'soft' EMH has emerged which does not require that prices remain at or near equilibrium, but only that market participants not be able to systematically profit from any momentary market 'inefficiencies'. Moreover, while EMH predicts that all price movement (in the absence of change in fundamental information) is random (i.e., non-trending), many studies have shown a marked tendency for the stock market to trend over time periods of weeks or longer. Various explanations for such large and apparently non-random price movements have been promulgated. For instance, some research has shown that changes in estimated risk, and the use of certain strategies, such as stop-loss limits and Value at Risk limits, theoretically could cause

financial markets to overreact. But the best explanation seems to be that the distribution of stock market prices is non-Gaussian (in which case EMH, in any of its current forms, would not be strictly applicable). Other research has shown that psychological factors may result in exaggerated (statistically anomalous) stock price movements (contrary to EMH which assumes such behaviors 'cancel out'). Psychological research has demonstrated that people are predisposed to 'seeing' patterns, and often will perceive a pattern in what is, in fact, just noise. (Something like seeing familiar shapes in clouds orink blots.) In the present context this means that a succession of good news items about a company may lead investors to overreact positively (unjustifiably driving the price up). A period of good returns also boosts the investor's self-confidence, reducing his (psychological) risk threshold. Another phenomenonalso from psychologythat works against an objective assessment is group thinking. As social animals, it is not easy to stick to an opinion that differs markedly from that of a majority of the group. An example with which one may be familiar is the reluctance to enter a restaurant that is empty; people generally prefer to have their opinion validated by those of others in the group. In one paper the authors draw an analogy with gambling.[17] In normal times the market behaves like a game of roulette; the probabilities are known and largely independent of the investment decisions of the different players. In times of market stress, however, the game becomes more like poker (herding behavior takes over). The players now must give heavy weight to the psychology of other investors and how they are likely to react psychologically. The stock market, as with any other business, is quite unforgiving of amateurs. Inexperienced investors rarely get the assistance and support they need. In the period running up to the 1987 crash, less than 1 percent of the analyst's recommendations had been to sell (and even during the 20002002 bear market, the average did not rise above 5%). In the run up to 2000, the media amplified the general euphoria, with reports of rapidly rising share prices and the notion that large sums of money could be quickly earned in the so-callednew economy stock market. (And later amplified the gloom which descended during the 20002002 bear market, so that by summer of 2002, predictions of a DOW average below 5000 were quite common.)

Irrational behavior Sometimes, the market seems to react irrationally to economic or financial news, even if that news is likely to have no real effect on the fundamental value of securities itself. But, this may be more apparent than real, since often such news has been anticipated, and a counterreaction may occur if the news is better (or worse) than expected. Therefore, the stock market may be swayed in either direction by press releases, rumors, euphoria and mass panic; but generally only briefly, as more experienced investors (especially the hedge funds) quickly rally to take advantage of even the slightest, momentary hysteria. Over the short-term, stocks and other securities can be battered or buoyed by any number of fast market-changing events, making the stock market behavior difficult to predict. Emotions can drive prices up and down, people are generally not as rational as they think, and the reasons for buying and selling are generally obscure. Behaviorists argue that investors often behave 'irrationally' when making investment decisions thereby incorrectly pricing securities, which causes market inefficiencies, which, in turn, are opportunities to make money.[18] However, the whole notion of EMH is that these non-rational reactions to information cancel out, leaving the prices of stocks rationally determined. The Dow Jones Industrial Average biggest gain in one day was 936.42 points or 11 percent, this occurred on October 13, 2008.[19]

LIST OF DEVELOPING COUNTRIES

Afghanistan Albania Algeria American Samoa Angola Antigua and Barbuda Argentina Armenia Azerbaijan Bangladesh Belarus Belize Benin Bhutan Bolivia Bosnia-Herzegovina Botswana Brazil Bulgaria Burkina Faso Burundi Cambodia Cameroon Cape Verde Central African Republic

Guinea Guinea-Bissau Guyana Haiti Honduras India Indonesia Iran Iraq Jamaica Jordan Kazakhstan Kenya Kiribati Korea, Dem. Rep. Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Lithuania Macedonia Madagascar Malawi

Peru Philippines Poland Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent Samoa Sao Tome and Principe Senegal Serbia Seychelles Sierra Leone Solomon Islands Somalia South Africa Sri-Lanka Sudan Suriname Swaziland Syria Tajikistan Tanzania

Chad Chile China Colombia Comoros Congo, Dem. Rep. Congo, Rep. Costa Rica Cote d'Ivoire Croatia Cuba Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Eritrea Ethiopia Fiji Gabon Gambia Georgia Republic Ghana Grenada Guatemala

Malaysia Maldives Mali Marshall Islands Mauritania Mauritius Mayotte Mexico Micronesia Moldova Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nepal Nicaragua Niger Nigeria Pakistan Palau Panama Papua New Guinea Paraguay

Thailand Timor Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine Uruguay Uzbekistan Vanuatu Venezuela Vietnam Yemen Zambia Zimbabwe

LIST OF DEVELOPED COUNTRIES

The latest index was released on 2 November 2011 and covers the period up to 2011. The following are the 47 countries in the topquartile and classified as possessing a "Very high human development".[12]

Rank Country
New 2011 Estimates for 2011
[12]

HDI

Change compared to new 2011 data for 2010

[12]

New 2011 Estimates for 2011

[12]

Change compared to new 2011 data for 2010

[12]

Norway

0.943

0.002

Australia

0.929

0.002

Netherlands

0.910

0.001

United States

0.910

0.002

New Zealand

0.908

Canada

0.908

0.001

Ireland

0.908

0.001

Liechtenstein

0.905

0.001

Germany

0.905

0.002

10

Sweden

0.904

0.003

11

Switzerland

0.903

0.002

12

Japan

0.901

0.002

13

(1)

Hong Kong

0.898

0.004

14

(-1)

Iceland

0.898

0.002

15

South Korea

0.897

0.003

16

Denmark

0.895

0.002

17

Israel

0.888

0.002

18

Belgium

0.886

0.001

19

Austria

0.885

0.002

20

France

0.884

0.001

21

Slovenia

0.884

0.002

22

Finland

0.882

0.002

23

Spain

0.878

0.002

24

Italy

0.874

0.001

PRODUCT PROFILE
NATIONAL STOCK EXCHANGE OF INDIA (NSE) About the National Stock Exchange of India : In the fast growing Indian financial market, there are 23 stock exchanges trading securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the largest and most advanced exchange with 1016 companies listed and 726 trading members. The NSE is owned by the group of leading financial institutions such as Indian Bank or Life Insurance Corporation of India. However, in the totally de-mutualised Exchange, the ownership as well as the management does not have a right to trade on the Exchange. Only qualified traders can be involved in the securities trading. The NSE is one of the few exchanges in the world trading all types of securities on a single platform, which is divided into three segments: Wholesale Debt Market (WDM), Capital Market (CM), and Futures & Options (F&O) Market. Each segment has experienced a significant growth throughout a few years of their launch. While the WDM segment has accumulated the annual growth of over 36% since its opening in 1994, the CM segment has increased by even 61% during the same period. The National Stock Exchange of India has stringent requirements and criteria for the companies listed on the Exchange. Minimum capital requirements, project appraisal, and company's track record are just a few of the criteria. In addition, listed companies pay variable listing fees based on their corporate capital size. The National Stock Exchange of India Ltd. provides its clients with a single, fully electronic trading platform that is operated through a VSAT network. Unlike most world exchanges, the NSE uses the satellite communication system that connects traders from 345 Indian cities. The advanced technologies enable up to 6 million trades to be operated daily on the NSE trading platform.

AMERICAN STOCK EXCHANGES: About the American Stock Exchange : The American Stock Exchange is the third largest stock exchange in the U.S. after the NYSE and the NASDAQ, handling approximately 10% of American trades. The American Stock Exchange lists companies from all different industries and of all different sizes. However, the exchange is known as having the least strict listing requirements among the three top American exchanges, which results in many small companies joining the exchange. Once a major competitor of the NYSE, the American Stock Exchange is now mostly known for trading in small cap stocks, options, and exchange traded funds. The exchange is owned by NASD (National Association of Securities Dealers), but operated as a separate exchange from the NASDAQ. As an auction market, the AMEX conducts its business on a trading floor through brokers and specialists. Each security traded on the exchange is handled by a specialist, whose job it is to bring buyers and sellers together, and ensure that a fair market price is obtained for both parties. It is also a specialist's job to ensure that a market remains liquid, by buying or selling from their own account if no one else will. Brokers move around the floor, bringing buy and sell orders to the different specialists on behalf of their clients. The AMEX options exchange is one of the largest in the world, with over 1,700 options traded on stocks, American Depository Receipts, indexes, exchange traded funds, and HOLDRS. In addition, the AMEX has an extensive market for exchange traded funds as they were the first to trade in this market. The AMEX has a listing of over 140 ETFs on general stock markets, industries, corporate bond indexes and more.

Chicago Mercantile Exchange (CME) New York Stock Exchange (NYSE) NASDAQ Stock Exchange Toronto Stock Exchange (TSX)

EUROPEAN STOCK EXCHANGES: About the London Stock Exchange : The London Stock Exchange is the most important exchange in Europe and one of the largest in the world. It lists over 3,000 companies and with 350 of the companies coming from 50 different countries, the LSE is the most international of all exchanges. The London Stock Exchange is comprised of two different stock markets: the Main Market and the Alternative Investment Market (AIM). The Main Market is solely for established companies with high performance, and the listing requirements are strict. Approximately 1,800 of the LSE's company listings trade on the Main Market, and the total market capitalization is over 3,500 billion. The Alternative Investment Market on the other hand trades small-caps, or new enterprises with high growth potential. Over 1,060 companies list on this market, with a total capitalization of 37 billion. The LSE is completely electronic, but different shares are traded on different systems. Highly liquid shares are traded using the SETS automated system on an order driven basis. This means that when a buy and sell price match, an order is automatically executed. For securities that trade less regularly, the London Stock Exchange implements the SEAQ system, where market makers keep the shares liquid. These market makers are required to hold shares of a specific company and set the bid and ask prices, ensuring that there is always a market for the stock. The LSE also has a new and growing exchange for equity derivatives called EDX London, created in 2003. In 2004, EDX traded an average of 382,599 contracts per day. Its aim is to become the leading derivatives market in the world.

London Metal Exchange (LME) Irish Stock Exchange (ISE) Italian Stock Exchange (BIT) Frankfurt Stock Exchange (FSE) OMX Stock Exchanges (OMX) Moscow Stock Exchange (MICEX)

ASIAN AND PACIFIC STOCK EXCHANGES: About the Bombay Stock Exchange : As the first stock exchange in India, the Bombay Stock Exchange is considered to have played a very important role in the development of the country's capital markets. The Bombay Stock Exchange is the largest of 22 exchanges in India, with over 6,000 listed companies. It is also the fifth largest exchange in the world, with market capitalization of $466 billion. The Bombay Stock Exchange uses the BSE Sensex, an index of 30 large, developed BSE stocks. This index gives a measure of the overall performance of the Bombay Stock Exchange, and is closely followed around the world. Based on the Sensex, the BSE equity market has grown significantly since 1990. In addition to individual stocks, the BSE also has a market in derivatives, which was the first to be established in India. Listed derivatives on the exchange include stock futures and options, index futures and options, and weekly options. The Bombay Stock Exchange is also actively involved with the development of the retail debt market. The debt market in India is considered extremely important, as the country continues to develop and depends on this type of investment for growth. Until recently, the debt market in India was limited to a wholesale market, with banks and financial institutions as the only participants. The Bombay Stock Exchange believes that a retail market will bring great opportunities to individual investors through better diversification.

Hong Kong Stock Exchange (HKSE) Bombay Stock Exchange (BSE) Hyderabad Stock Exchange (HSE) Tokyo Stock Exchange (JP) Singapore Exchange (SGX) Australian Stock Exchange (ASX) National Stock Exchange of India (NSE) Karachi Stock Exchange (KSE)

Philippine Stock Exchange (PSE) Shanghai Stock Exchange (SSE) New Zealand Stock Exchange (NZX) Colombo Stock Exchange (CSE) MIDDLE EASTERN EXCHANGES: About the Dubai Stock Exchange : The Dubai International Financial Exchange (DIFX) owned by the sole shareholder Dubai International Financial Centre Authority (DIFC), launched Dubai securities trading market in September 2005. As the DIFX is situated in the newly established financial free zone DIFC, all the operations of the Exchange together with all other financial activities in the DIFC are regulated by the Dubai Financial Services Authority (DFSA). The DIFX is a fast-growing company seeking high goals. Although it started operating with four members on the board, the Exchange already has 13 member banks. It is expecting to have up to 40 members by the 2006 year-end. Also the governance of the DIFX is seeking to list 10 to 15 IPOs and to gain the market capitalization of minimum US$ 50 million by the end of 2006. The Dubai Stock Exchange provides its members with one-stop solution to trading, clearing, and settlement through the fully electronic AtosEuronext Market Solutions NSC system. The Exchange does not require members to use a specific trading terminal, as a technical connection is offered. The trading on the DIFX is operated through an anonymous hybrid system that combines orderdriven systems with market making. Each member trading on the Dubai International Financial Exchange platform must either be a Clearing member of the DIFX or have relationship with a DIFX Clearing Member firm. It is the first exchange in its region that has been created to list securities from many different countries. The Dubai Stock Exchange provides an opportunity for international investors to invest in the Middle East, North and South Africa, Turkey, Central Asia, and the Indian sub

continent. To attract foreign investment, the DIFX's preferred trading currency is US dollar. In addition, the Dubai International Financial Exchange also has the capability to trade in Euros and Sterling on request. Unlike other independent exchanges in the region, the DIFX does not have limits on foreign ownership. The Dubai International Financial Exchange intends to bridge the gap between the Middle East markets and the markets in London, Singapore and Hong Kong. AFRICAN STOCK EXCHANGES: About the Johannesburg Stock Exchange : The Johannesburg Stock Exchange lists more than 400 companies and has market capitalization of over $182 billion, making it the largest exchange in Africa and among the top ten largest in the world. The exchange trades shares for a wide variety of industries, with the largest portion of market capitalization coming from the mining industry. The JSE just recently became a publicly held company in July or 2005. The JSE lists shares on two separate markets, the Mainboard and AltX. The requirements for listing on the Mainboard are strict, while the AltX lists smaller companies who fail to meet the Mainboard criteria. As a new branch of the JSE, AltX companies currently make up a very small portion of JSE listings. The exchange is fully electronic, using the JET System (Johannesburg Equities Trading). This is an order-based system, whereby trades are automatically executed when matching buy and sell prices are found.

MARKETING STRATEGIES
MARKETING MIX PLACE Once of the ps marketing mix is place includes communication channels, coverage, assortment, location, inventory and transports. It resents convenience to users. PROMOTION Sales promotion is a key in guidance in marketing company consist of device collection of invective tools mostly short term designed to simulate for quicker of greater purchase of particular product to services by consumers or trade advertising offers reason to e.g. cash refund, free samples, coupons, etc. PRICE Price is any time will be increase and decrease. And price is a value able structure in a season. MARKET SEGMENTATION A company can not serve all customer in a broad market such as computation in stock exchanges returns. The company there for company needs to identified the market segmentation that it is can serve more effectively. In simple words the market segmentation means A consists of a group of customers who share a similar set of needs and wants. The marketer does not create the segments the marketers task is to identify the segments and decide which one to target. Segment marketing offers key benefits over mass marketing. The company can presumably better design, price, disclose and deliver the product or service to satisfy the target market. The company also can fine tune the marketing program and activities to better reflect competitors marketing.Every company are turning to micro marketing at one of the 4 levels

I. Segment marketing. II. Niches marketing. III. Local area marketing. IV. Individuals marketing/customerization. Segment marketing A market segment consist of a group of customers who shares a similar set of needs &wants. Groups can be distinguished &segment can be formed on basis of needs and wants for the same product..

Low coast price Good packaging Good product

Market segment can be defined by the way of preferences segments. There will be 3 patterns emerging, Homogeneous preferences Diffused preferences Clustered preferences

PRICING POLICY Pricing policy are generally decided by top management. price is the exchange value of product or service . through pricing policy we are going to establish the relation between and sellers on pricing policy most of the marketing strategies or activities are depended . The broad factors that are affected to pricing : Cost of production Competitors pricing policy . Market demand . Product leadership. Profit maximization .

Cost of product includes from begging of buying raw material, transportation , administrating it managing it was stock work in process managing cost finished goods packing and dispatch cost transportation from retailer to consumer production labor cost . These all costs can be broadly categorized in two

I. Direct cost II. Indirect cost,

LIMITATION
Due to time and money consideration sample size was limited. Findings are based on the information provided by the respondents during the study which may be subject to personal bias. Research was carried out in limited cities. People were denying giving the answers. The study is conducted in limited cities.

CONCLUSION

The global financial market has transformed from Sellers market to Buyers market with liberalization, Globalizations and privatization. good news is that this is poised to become a trend. The Stock Exchange Returns have strengthened their distribution networks, become more transparent and investor friendly and are rewarding investors. Careful market analysis, consumer segmentation, identification of investor needs, service designing are to be carried out for the successful implementation of different schemes by mutual fund organizations. Regulatory measures by SEBI should be clearly explained to the investors. Positioning of the schemes and their branding will help a lot for growth of the industry.

BIBLIOGRAPHY

1. www.google.com 2. www.scribd.com 3. www.wikipedia.com 4. www.doctstock.com 5. http://en.wikipedia.org/wiki/Stock_market 6. http://www.moneycontrol.com/stocksmarketsindia/