Over the counter exchange vs exchange

5,481 views

Published on

0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
5,481
On SlideShare
0
From Embeds
0
Number of Embeds
300
Actions
Shares
0
Downloads
271
Comments
0
Likes
5
Embeds 0
No embeds

No notes for slide

Over the counter exchange vs exchange

  1. 1. Over the counter exchange v/sstock exchange
  2. 2. What is Over the counter exchange of India (OTC) ????OTCEL is an electronic stock exchange with theobject of providing an opportunity to small&medium companies to assess public funds at alow cost.
  3. 3. Why was it set up?????It was set up to access high-technologyenterprising promoters in raising financefor new product development in a costeffective manner and to provide transparentand efficient trading system to theinvestors.
  4. 4. Objectives of OTCThe objectives of the OTC are-liquidity-fixed-fair price-simplified process of buying and selling-quick disposal of orders-cheaper method of public sale of new issues
  5. 5. Benefits for company of OTCOTCEI offers facilities to the company having aissued equity capital of more than Rs.30 lakhsSmall & medium closely held company can gopublicEncourage entrepreneurshipCompany can get the money before the issue incases of bought out dealsEasy issue marketing by using the nation-wideOTCEI dealers networkNation wide trading by listing at just 1 exchange
  6. 6. Benefits for investorsEasily accessible by any investorProvide greater confidence to investors becauseof the complete transparency in IndiaTransactions are fast and completed quicklyEnsures security, liquidity, by offering 2 wayquotes,OTCEI is an investors friendly exchange withsingle window clearance for all investor requests.
  7. 7. What is Stock exchange ???? A stock exchange is an entity that provides servicesfor stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and dividends.Securities traded on a stock exchange include sharesissued by companies, unit trusts, derivatives, pooled investment products and bonds.
  8. 8. History of Stock ExchangeIn 1609, investors led by one Isaac Le Maire formed historys first bearsyndicate.The Dutch West India Company was formed in 1621, bringing a newissuer to the burgeoning securities market.On February 8, 1971, NASDAQ, the worlds first electronic stockexchange, started its operations.A bond issued by the Dutch East India Company, dating from 7November 1623, for the amount of 2,400 florins.
  9. 9. Facts about the Stock ExchangeThe Code of Hammurabi recorded interest-bearing loans.In 1609, investors led by one Isaac Le Maire formed historys first bearsyndicate.The Dutch West India Company was formed in 1621, bringing a newissuer to the burgeoning securities market.NASDAQ was the first electronic stock exchange.By 1698, a broker named John Castaing, operating out of JonathansCoffee House, was posting regular lists of stock and commodity prices.Those lists mark the beginning of the London Stock Exchange.On February 8, 1971, NASDAQ, the worlds first electronic stockexchange, started its operations.
  10. 10. The role of stock exchangesRaising capital for businessesMobilizing 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Speculation
  11. 11. Major stock exchanges of the worldNew York Stock Exchange, New York CityLondon Stock Exchange, the City of LondonTokyo Stock Exchange, TokyoHong Kong Stock Exchange, Hong KongBolsa de Madrid, MadridBombay Stock Exchange, MumbaiToronto Stock Exchange, TorontoSao Paulo Stock Exchange, Sao PauloAustralian Securities Exchanges Sydney exchange centre, SydneyFrankfurt Stock Exchange, FrankfurtParis Stock Exchange, ParisSWX Swiss Exchange, ZurichMexican Stock Exchange, Mexico City
  12. 12. Difference between OTC & ExchangeIn exchange markets, there’s a regulator (exchange)through which transactions are completed, while in OTC markets there is no regulator. Exchange markets have less chances of pricemanipulation, while the many competing traders in OTC markets can manipulate prices.Exchange markets ensure transaction security, while OTC markets are prone to fraud and dishonest traders.

×