Stock Exchange market

Group Three

Name Roll No.

Abdul Naser 02
Sonali 05
Masood 14
Nazir Ahmad 20
NiveDita 21
 What is Stock exchange?
A stock exchange is a corporation or mutual organisation
which provides "trading" facilities for stock brokers to trade
in stocks and other securities. The securities traded on a stock
exchange include: shares issued by companies, unit trusts,
derivatives, pooled investment products and bonds.
Simply put, stock exchanges are open markets that trade in
financial assets. Whether associated with a company or acting
as an individual, a stock exchange is the place where stocks
are bought and sold. There are a number of major stock
exchanges around the world and each of these plays a part in
determining the overall economic condition.
 What is the role of a stock exchange that
makes it vital to an economy?
The main function of a stock exchange is to facilitate the transactions
associated with both buying and selling of securities. Buyers and sellers of
shares and stocks can track the price changes of securities from the stock
markets (derivatives, equity etc.) in which they operate.
Also, stock exchanges have multiple roles in an economy which make it
vital. These roles include:
Raising capital for businesses
Mobilising savings for investment
Facilitating company growth
Profit sharing
Corporate governance
Creating investment opportunities for small investors
Government capital-raising for development projects
Barometer of the economy
 How does a stock exchange operate?

With the help of stockbrokers, the buyers and sellers

participating in a stock market carry out their
transactions. The brokers representing selling parties take
their orders to the stock exchange floor and then find
brokers representing parties willing to invest in similar
stocks. If both parties agree to trade at the fixed price, the
transaction takes place.
 How to estimate the rise and fall in price
level of stocks
There are many factors that affect the price of stocks. Included
are inflation, interest rates, domestic political unrest, war or
terrorism, crime, fraud and oil or energy prices to name but a
few.
All of these factors will drive the price of the stock market up or
down. However regardless of these factors, the price of stocks is
liquid and it is determined by how much buyers are prepared to
spend and how much sellers will take for their stock.
So as you can see, there are many scenarios that can unfold and
affect how the stock market prices rise and fall. All these factors
play out together in the rise and fall of the stock market. If you
watch it closely, you can pick out the trends and accurately
predict price hikes, interest rate increases or when inflation will
occur again.
 Scope in stock exchange for young broker
Scope in India: Careers in Stock Broking are not
frowned upon any more today. Stock Broking is
providing youngsters with varied scopes. A person
who has done a Stock Broker course in India can find
jobs in the following areas:
oBusiness Houses
oStock Broking Firms
oInvestment Banks
oOne can work as a dealer or an analyst (to be an
analyst one needs to be a M.B.A or a C.A)
Scope Abroad: Stock Broking provides ample
opportunities outside India also. Though the job
profile remains the same, which is of a broker,
dealer or analyst, the remunerations are higher.
Becoming a Stock Broker in NASDAQ obviously
implies far greater monetary gains.
 Entry points for young stock broker
To be a Stock Broker one has to follow the below
given steps:-
One must have a strong education background
either in commerce, economics or in business
administration or in finance.
Also to be eligible for stock broking profession one
may pursue Postgraduate courses in economics or
commerce offered by several universities in the
country. Finance managers may be MBAs with
specialization in finance from the reputed institutes
of management or from the departments of business
administration of the major universities.
Step 1
An aspirant has to do Courses in stock broking and capital
market and investment, investment planning and several
other related courses that are offered by few training
institutes in India.

Step 2 
After going through these courses one has to join a stock
broking firm and has to get at least 2 years of experience
in it. 

Step 3
After getting enough experience and knowledge while
working with a stock broking firm one can start his own
business alone or by registering a stock brokering firm
with requisite permission from the relevant authorities.
 Conclusion
Everyday, stocks are exchanged and traded in
numerous stock markets around the world. The
liquidity they bring are a vital component of economic
growth. However, we seldom stop and think about the
vital role that a stock exchange plays.
Thank you