ASSIGNMENT-
ASSIGNMENT INVESTMENTS
Submitted by:- SUSHIL KUMAR PUJIL KHANNA ROBIN CHOUDHARY AVINASH JESWANI
How Companies Raise The Capital
By following mean’s Debentures
Equity
Loan’s
Why Companies Issue Stock?
When a company would like to grow, it issues stocks to raise funds and pay for ongoing business activities It is popular because:
The company does not have to repay the money Paying dividends is optional
Dividends are distributions of earnings paid to stockholders
What is a Stock?
Stock is a share in the ownership of a
company. It represents a claim on the company's assets and earnings
Whether you say shares, equity or stock, it all
means the same thing.
What is a stock market?
Place where business of buying and selling
stock takes place
The stock market is not a specific place,
though some people use the term "Dalaal Street”
STOCK MARKETS ACROSS THE WORLD
Stock exchange world wide
New York Stock Exchange - United States NASDAQ (National Association of Security Dealers Automated
Quotations) - United States
Shanghai Stock Exchange - China Dow Jones Stock Exchange Tokyo Stock Exchange
TOKYO STOCK EXCHANGE
MAY 15, 1878"TOKYO STOCK EXCHANGE CO., LTD." ESTABLISHED JUN. 30, 1943"JAPAN SECURITIES EXCHANGE", A QUASIGOVERNMENTAL ORGANIZATION, CREATED BY A MERGER OF ALL EXISTING STOCK EXCHANGES IN JAPAN APR. 1, 1949"TOKYO STOCK EXCHANGE" IN THE PRESENT FORM FOUNDED (OPENED ON MAY 16) APR. 1, 1968LICENSING SYSTEM FOR SECURITIES COMPANIES INTRODUCED IN PLACE OF REGISTRATION SYSTEM JUL. 1, 1969TOPIX (TOKYO STOCK PRICE INDEX) INAUGURATED (JANUARY 4,1968=100) SEP. 24, 1974MARKET INFORMATION SYSTEM (MIS) PUT INTO OPERATION MAR. 1. 2000HIROSHIMA AND NIIGATA STOCK EXCHANGES MERGE INTO TSE
NASDAQ STOCK EXCHANGE
THE NASDAQ WAS DEVELOPED IN 1971 AS THE FIRST ELECTRONIC STOCK EXCHANGE IN THE WORLD 2,500 OTC STOCKS WERE TRADED ON THE NASDAQ'S FIRST TRADING DAY, FEBRUARY 8, 1971
IN 1994 THE NASDAQ BEAT THE NYSE IN ANNUAL SHARES TRADED. IN 1998, THE NASDAQ MERGED WITH THE AMERICAN STOCK EXCHANGE AN ELECTRONIC STOCK EXCHANGE WITH 3,300 COMPANY LISTINGS. IT CURRENTLY HAS A GREATER TRADING VOLUME THAN ANY OTHER U.S. EXCHANGE, MAKING APPROXIMATELY 1.8 BILLION TRADES PER DAY
NEW YORK STOCK EXCHANGE
NEW YORK STOCK EXCHANGE: -
THE NEW YORK STOCK EXCHANGE (NYSE) IS A STOCK EXCHANGE LOCATED AT 11 WALL STREET IN LOWER MANHATTAN, NEW YORK CITY, NEW YORK, USA. IT IS THE LARGEST STOCK EXCHANGE IN THE WORLD BY UNITED STATES DOLLAR VALUE OF ITS LISTED COMPANIES' SECURITIES. AS OF OCTOBER 2008, THE COMBINED CAPITALIZATION OF ALL DOMESTIC NYSE LISTED COMPANIES WAS US$10.1 TRILLION.
SHANGHAI STOCK EXCHANGE
SHANGHAI STOCK EXCHANGE: - THE SHANGHAI STOCK EXCHANGE (SSE) AT THE 2007, THE SHANGHAI STOCK EXCHANGE HAD 860 LISTED COMPANIES WITH A COMBINED MARKET CAPITALIZATION OF US$3.95 TRILLION, MAKING IT THE LARGEST IN CHINA AND SECOND LARGEST IN THE WORLD. THE CURRENT EXCHANGE WAS RE-ESTABLISHED ON NOVEMBER 26, 1990 AND WAS IN OPERATION ON DECEMBER 19 OF THE SAME YEAR. IT IS A NON-PROFIT ORGANIZATION DIRECTLY ADMINISTERED BY THE CHINA SECURITIES REGULATORY COMMISSION (CSRC).
Stock exchange in India
The Bombay Stock Exchange (BSE) National Stock Exchange of India Ltd (NSE)
Bombay Stock Exchange (BSE)
Following is the timeline on the rise and rise of the Sensex through Indian stock market history.
1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. 1860-1865Cotton price bubble as a result of the American Civil War
1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal
1978-79 Base year of Sensex, defined to be 100.
National Stock Exchange (NIFTY)
November 1992 as a
tax-paying company In April 1993, it was recognized as a stock exchange.
INDEX
SENSEX
Sensex is an index, an index is basically an indicator. It gives you a general idea about whether most of the
stocks have gone up or most of the stocks have gone down. The sensex is an indicator of all the prices of the major companies of the BSE(Bombay stock exchange)
It includes 30 companies
NIFTY(Nifty Fifty)
Nifty is an indicator of all the major companies of NSE. The Nifty index is a composite of the top 50 stocks listed
on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand what happens in the stock market & by extension, the economy.
Market Timings
Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the exchange in advance) The market timings of the equities segment are: Normal market open : 09:55 hours Normal market close : 15:30 hours The closing session is held between 15.50 hours and 16.00 hours in NSE and 15.40 hours and 16.00 hours in BSE
Trading on BSE and NSE
BSE and NSE provide trading facility on
two segments ,which are - Cash Segment and - Derivative Segment NSE also has another segment called WDM, Wholesale Debt Market.
Circuit Breakers
An index based market-wide circuit breaker system applies at three
stages of the index movement either way at 10%, 15% and 20%.
The breakers are triggered by movement of either S&P CNX Nifty or
Sensex, whichever is breached earlier
As an additional measure of safety, individual scrip-wise price bands has been fixed as below: Daily price bands of 2% (either way) on a set of specified securities Daily price bands of 5% (either way) on a set of specified securities Daily price bands of 10% (either way) on another set of specified securities
Securities and Exchange Board of India (SEBI)
SEBI is the Regulator
for the Securities Market in India. Originally set up by the Government of India in 1988, it acquired statutory form in 1992.
Functions and Responsibilities (SEBI)
SEBI has to be responsive to the needs of
three groups, which constitute the market: the issuers of securities the investors the market intermediaries.
How the Market Work
NSE
Broker
Broker
Public
Public