GROUP NO 1

GROUP MEMBERS
 SHIVA KUMAR
 EDEL
 BELINDA
 AUSTIN
 ALLAN
 SHREEM
BY
SHIVA KUMAR
Stocks:
Securities or certificates representing fractional ownership of a company
purchased as an investment.

Stock market.
A stock market may be a physical place, sometimes known as a
stock exchange, where brokers gather to buy and sell stocks and
other securities.

The term is also used more broadly to include electronic trading

that takes place over computer and telephone lines. In fact, in
many markets around the world, all stock trading is handled
electronically.
The market in which shares are issued and traded either
through exchanges or over-the-counter markets. Also
known as the equity market, it is one of the most vital
areas of a market economy as it provides companies with
access to capital and investors with a slice of ownership in
the company and the potential of gains based on the
company's future performance.
Some Features of Stock Exchange Market
1. Specialized market. Stock exchange is a
specialized market for the purchase and sale of
industrial and financial securities.
2. Rigid rules. There are large number of
buyers and sellers who conduct their activities
according to rigid rules.
3. Basis of formation. Its activities are
controlled by the company ordinance in our
country. It can be formed as company limited by
guarantee or company limited by shares
4. Price Transparency - Because all trades for a stock flow through one
exchange, this means that everyone sees and has the opportunity to
execute on the same exact price as everyone else.
. 5. Regulatory Framework - the exchanges provide a standardized
regulatory framework that all participants must adhere to, and a method for
resolving disputes should they arise. This makes people more comfortable
and more likely to trade, which increases liquidity.
6. Liquidity - Liquidity is basically how much of a particular instrument can
be traded without affecting its price which is directly related to the volume
or number of buyers and sellers transacting at anyone time.
7.Capital market consists of primary and secondary markets.
8. Fully computerized trading.
BY,
BELINDA
 Raising capital for businesses
 Mobilizing savings for investment
 Facilitating company growth
 Profit sharing
 Creating investment opportunities for small
investors
 Government capital-raising for development
projects
 Barometer of the economy
History Of Stock Exchanges

Presented By
Edel Sequeira
0816016
 History

In 11th century France the courtiers de change were concerned with

managing and regulating the debts of agricultural communities on
behalf of the banks.

In the late 13th century commodity traders in Bruges gathered inside

the house of a man called Van der Burse
In 1309 they institutionalized this until now informal meeting and
became the "Bruges Bourse".
The idea spread quickly around Flanders and neighbouring counties
and "Bourses" soon opened in Ghent and Amsterdam
 Cont.

In the middle of the 13th century, Venetian bankers began to trade in

government securities.

There were people in Pisa, Verona, Genoa and Florence who also
began trading in government securities during the 14th century

The Dutch later started joint stock companies, which let shareholders
invest in business ventures and get a share of their profits or losses
 Cont.
In 1602, the Dutch East India Company issued the first shares on the
Amsterdam Stock Exchange

It was the first company to issue stocks and bonds.

In 1688, the trading of stocks began on a stock exchange in London

On May 17, 1792, twenty-four supply brokers signed the Buttonwood

Agreement outside 68 Wall Street in New York underneath a
buttonwood tree.
On March 8, 1817, properties got renamed to New York Stock &
Exchange Board.
In the 19th century, exchanges got substantiated to trade futures
contracts and then choices contracts
 Cont.

Today, stock exchanges operate around the world, and they have
become highly regulated institutions.

Investors wanting to buy and sell shares must do so through a share

broker, who pays to own a seat on the exchange.

Companies with shares traded on an exchange are said to be 'listed'

and they must meet specific criteria, which varies across
exchanges.

Most stock exchanges began as floor exchanges, where traders made

deals face-to-face.

The largest stock exchange in the world, the New York Stock
Exchange, continues to operate this way, but most of the world's
exchanges have now become fully electronic
The London Stock Exchange
• Participants in the stock
market range from small
individual stock investors to
large hedge fund traders. Their
orders usually end up with a
professional at a stock
exchange, who executes the
order.
• Some exchanges are physical locations where transactions are
carried out on a trading floor, by a method known as open outcry.

• The other type of stock exchange is a virtual kind, composed of a

network of computers where trades are made electronically via
traders.

• Actual trades are based on an auction market model where a

potential buyer bids a specific price for a stock and a potential seller
asks a specific price for the stock. When the bid and ask prices
match, a sale takes place on a first come first served basis if there
are multiple bidders or askers at a given price.
New York Stock Exchange

• The New York Stock

Exchange is a
physical exchange,
also referred to as a
listed exchange —
only stocks listed with
the exchange may be
traded
• Orders enter by way of exchange members and flow down to a floor
broker, who goes to the floor trading post specialist for that stock to
trade the order.

• The specialist's job is to match buy and sell orders using open
outcry.

• If a spread exists, no trade immediately takes place--in this case the

specialist should use his/her own resources (money or stock) to
close the difference after his/her judged time.

• Once a trade has been made the details are reported on the "tape"
and sent back to the brokerage firm, which then notifies the investor
who placed the order.

• Although there is a significant amount of human contact in this

process, computers play an important role, especially for so-called
"program trading"
History of Stock Exchange in
India

By Austin Pinto
Reg No:
0816067
 Origin
• The Indian Stock Market is One of the oldest stock markets in Asia and has a history of
over 200 years.
18th East India Company was the dominant institution and by end of the century and
Century business in its loan securities gained full momentum
1830's Business on corporate stocks and shares in Bank and Cotton presses started in
Bombay. As a result, the Trading list got broader by the end of 1839.
1840's About half a dozen brokers gained Recognition from banks and merchants.

1850's Rapid development of commercial enterprise saw brokerage business attracting

more people into the business.
1860's The number of brokers increased to 60.

1860-61 The American Civil War broke out which caused a stoppage of cotton supply
from United States of America; marking the beginning of the "Share Mania"
in India
1862-63 The number of brokers increased to about 200 to 250

1865 A disastrous slump began at the end of the American Civil War (For instance,
Bank of Bombay Share which had touched Rs. 2850 could only be sold at
Rs. 87)
 Pre-Independence Scenario - Establishment of Different Stock
Exchanges
1874 With the rapidly developing share trading business, brokers used to gather at a
street (now well known as "Dalal Street") for the purpose of transacting
business.

1875 "The Native Share and Stock Brokers' Association" (also known as "The
Bombay Stock Exchange") was established in Bombay
1880's Cotton mills industry was developed and many others were set up.
1894 "The Ahmedabad Share and Stock Brokers' Association" was established.
1908 "The Calcutta Stock Exchange Association" was formed.
1920 Madras witnessed boom and business at "The Madras Stock Exchange" was
transacted with 100 brokers.
1923 When recession followed, number of brokers came down to 3 and the
Exchange was closed down
1934 The Lahore Stock Exchange was established.
1936 The Lahore Stock Exchange was merged with the Punjab Stock Exchange.
 Contd..
Re-organisation and set up of the Madras Stock Exchange Limited (Pvt.)
1937

1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited
were established.

1944 "The Hyderabad Stock Exchange Limited" was established.

1947 "Delhi Stock and Share Brokers' Association Limited" and "The Delhi Stocks
and Shares Exchange Limited" were established and later on merged into
"The Delhi Stock Exchange Association Limited"
Post Independence Scenario
 After the Independence, India witnessed depression which led to
closure of a lot of exchanges in the country. Lahore stock Exchange
was closed down after the partition of India, and later on merged with
the Delhi Stock Exchange. Bangalore Stock Exchange Limited was
registered in 1957 and got recognition only by 1963. Most of the other
Exchanges were in a miserable state till 1957 when they applied for
recognition under Securities Contracts (Regulations) Act, 1956. The
Exchanges that were recognized under the Act were:
1. Bombay
2. Calcutta
3. Madras
4. Ahmedabad
5. Delhi
6. Hyderabad
7. Bangalore
8. Indore
Stock Exchanges established during 1980's

 Cochin Stock Exchange (1980)

 Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)
 Pune Stock Exchange Limited (1982)
 Ludhiana Stock Exchange Association Limited (1983)
 Gauhati Stock Exchange Limited (1984)
 Kanara Stock Exchange Limited (at Mangalore, 1985)
 Magadh Stock Exchange Association (at Patna, 1986)
 Jaipur Stock Exchange Limited (1989)
 Bhuvaneswar Stock Exchange Association Limited (1989)
 Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
 Vadodara Stock Exchange Limited (at Baroda, 1990)
 Coimbatore Stock Exchange
 Meerut Stock Exchange
 At present, there are twenty one recognized stock exchanges in India
excluding Over the Counter Exchange of India Limited (OTCEI) and
the National Stock Exchange of India Limited (NSEIL).
Stock Exchange

Presented By
Allan F Gonsalves
 Difference between Stock exchange
and commodity exchange
• Functions
SE>provide easy marketability
CE>Offering hedging or price
insurance services and liquidity
to securities
• Object
SE>Facilitating capital formation
CE>Facilitating goods flow through
risk reduction
• Participants
SE>Investors and Speculators
CE>Producers, Traders, and body of
speculators
• Articles Traded
SE>Industrial securities such as
stocks , bonds, govt bonds etc
CE>Only durable goods and goods
having large volume of trade
 BSE MILESTONES
• 1840-50 half a dose converge under
a banyan tree near Horniman circle
• 1860-65 the number of brokers rise
to about 250
• 1874 The broking community find a
place what is now called Dalal Street
• 1875 Native share and stock brokers
association was started
• 1895 The exchange moves into what is now
known Stock Exchange Old Building
• 1921 The establishment of clearing house for
settlement of transactions
• 1957 The government accords permanent
recognition under the securities contracts
• 1986 on Jan 2nd BSE Launches first stock
index with 30 scripts
• 1994 Serial bomb blast
• 1997 Screen based trading
commences
• 2000 BSE becomes first exchange in
the country to introduce trading in
derivatives
Importance of Indian stock
market, how growing and
declining economy affect
the stock market

Presented by :
Shreem Ranjitha .A
REG NUM:0816114
Importance of Indian stock
market
 Largest Democracy

 Steady government

 The 2nd largest market

 Economic growth

 Infrastructure

 Booming industrial sector

 SEBI

 Online Trading
Cont…..
FDI

BSE

NSE

Higher GDP

Biggest enterprises

Least affected by recession

A happening market
Effect of stock market in
growing market economy.
Effect of stock market on
declining market economy.
Curent situation of stock
market in
India
 The draught situation and weak global trends pulled
down the sensex on Wednesday by 226 points.