Over the counter exchange vs exchangePresentation Transcript
Over the counter exchange v/sstock exchange
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.
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.
Objectives of OTCThe 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
Benefits for company of OTCOTCEI offers facilities to the company having aissued equity capital of more than Rs.30 lakhsSmall & medium closely held company can gopublicEncourage entrepreneurshipCompany can get the money before the issue incases of bought out dealsEasy issue marketing by using the nation-wideOTCEI dealers networkNation wide trading by listing at just 1 exchange
Benefits for investorsEasily accessible by any investorProvide greater confidence to investors becauseof the complete transparency in IndiaTransactions are fast and completed quicklyEnsures security, liquidity, by offering 2 wayquotes,OTCEI is an investors friendly exchange withsingle window clearance for all investor requests.
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.
History of Stock ExchangeIn 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.
Facts about the Stock ExchangeThe 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.
The role of stock exchangesRaising capital for businessesMobilizing savings for investmentFacilitating company growthProfit sharingCorporate governanceCreating investment opportunities for small investorsGovernment capital-raising for development projectsBarometer of the economySpeculation
Major stock exchanges of the worldNew York Stock Exchange, New York CityLondon Stock Exchange, the City of LondonTokyo Stock Exchange, TokyoHong Kong Stock Exchange, Hong KongBolsa de Madrid, MadridBombay Stock Exchange, MumbaiToronto Stock Exchange, TorontoSao Paulo Stock Exchange, Sao PauloAustralian Securities Exchanges Sydney exchange centre, SydneyFrankfurt Stock Exchange, FrankfurtParis Stock Exchange, ParisSWX Swiss Exchange, ZurichMexican Stock Exchange, Mexico City
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.