It has been collected from different sources make you clear about stock exchange & it's various function .

1. Presented by Manzoor "Ghorzang" 1

2. Presented by Manzoor "Ghorzang" 2
&
It’s Functions

3.  Stock Exchange is the name of the market
where instead of goods and services, stocks
and shares are traded. Investors can sell or
purchase shares, bonds or securities of
different companies and corporate bodies.
More often these purchases and sales are
made through agent or brokers. It has now
became very necessary and important
clement of every economy.
3Presented by Manzoor "Ghorzang"

4.  They serve a vital purpose of accumulation of
savings and their availability for productive
purposes. In fact the rise of joint stock
companies and corporate bodies and the
sustained performances would have been
impossible in its absence.
 Stock exchange is an important element of
every economy. It performs many vital
functions for steady growth and continuous
development of the economy. Some of the
important functions are explained below:
4Presented by Manzoor "Ghorzang"

5. Presented by Manzoor "Ghorzang" 5

6. Presented by Manzoor "Ghorzang" 6

7.  The most important function is the
determination of share prices for everyday
trading. The prices are affected by the forces
of demand and supply. It is the place where
these forces meet each other to establish
price of a share. This price then shows the
strength of a company in the market.
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8. Presented by Manzoor "Ghorzang" 8

9.  It is the basis of development of capital
market. As you know that capital market has
two segment i.e., non-securities market and
securities market. It is a developed form of
this securities market. Active stock exchange
helps in better growth of capital market. It
also provides a medium in which different
instruments of capital market can be easily
traded.
9Presented by Manzoor "Ghorzang"

10.  Stock market induces people to save. It
teaches them to save and then to invest
savings in right direction. By providing a
profitable way of using savings, stock
markets increase potential of savings in the
economy. Higher savings potentials increases
the rate of capital formation in the country. It
also helps in the expansion of economy in the
long run.
10Presented by Manzoor "Ghorzang"

11. Presented by Manzoor "Ghorzang" 11

12.  It serves the vital function of resource
mobilization. Not only it attracts savings from
all classes of society but it also channel these
savings in different sectors. So it turn savings
into investment. These investments are then
used to extract and allocate more and more
resources of all kind. Efficient mobilization of
resources lead to increase in production and
improvement of living standards.
12Presented by Manzoor "Ghorzang"

13.  It strengthen the industrial base of the
country. You are very well aware that industry
needs a huge amount of capital. This need is
mainly fulfilled by stock exchange. It provides
an easy medium by which investment of any
amount can be made. The growth of joint
stock companies is also possible because of
stocks exchange. It is also the place where
share prices are quoted and shares and stock
are traded.
13Presented by Manzoor "Ghorzang"

14.  It plays an important role in emergence of
new companies and industries. A company
listed on the stock exchange enjoys a higher
confidence of public and general investor. So
it is in a better position to attract investment
and to raise minimum subscription. Thus in
the presence of stock exchange new projects
can be started relatively easily. It also helps in
raising finance for establishing new lines of
production and industrial units.
14Presented by Manzoor "Ghorzang"

15.  It helps in the maintenance of corporate structure
of the economy. It is a source of promotion for
sound and healthy companies. It has its
particular set of rules and regulation which are to
be abided by all the listed companies. These
rules ensures fair running of the affairs of
company. Also companies are required to send
their interim and final reports to it, where they
are listed. Thus investor can get these reports
from stock exchange and study affairs of desired
company.
15Presented by Manzoor "Ghorzang"

16.  It has a vital role in financial stability. Trends
in stock exchange effect all major sectors of
the economy. That is why the governing
authorities (Security and Exchange
Commission) always keep a close eye on the
conditions of stock exchange. In certain cases
market can be closed to save investors from
loses (as happened after 11Sep. attacks on
USA).
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17. Presented by Manzoor "Ghorzang" 17

18.  Register with a SEBI register trading member
or broker .
 All your investment will have to be made
through this broker .
 Make sure you ask for credentials of the
broker before registering .
 Don’t be misguided by people who claim to
be registered members .
 To identify a registered broker , you can
punch you address on the particular (SE)
website .
Presented by Manzoor "Ghorzang" 18

19.  (http://www.nseindia
.com/membership/dynaContent/find_a_brok
er.htm)
 It will show you the names to choose from.
 After selecting the authorized trading
member , complete the registration
formalities .
 Fill up KYC form . Risk disclosure document ,
other require forms .
 You will need a Demat Account , PAN card & a
Bank Account to trade .
Presented by Manzoor "Ghorzang" 19

20.  Register with a depository participant to open
a Demat Account .
 Make sure you keep a copy of all the forms
that you fill .
 Collect your unique client code (UCC) from
your broker .
 Start trading use your UCC , collect your
contract Note , at the end of day for all
transaction .
 Keep a track of your transaction at all time.
 Make sure you receive funds & securities on
time . (Max 2 days) .
Presented by Manzoor "Ghorzang" 20

21.  Collect your statement of accounts every
quarter , ( three months ) .
 Verify all your statements and contract notes
at all times .
 Register your mobile # and Email id with the
Exchange either through the website or your
broker,& the broker will share them with the
Exchange .
 The Exchange will send you your trade
transactions every day .
 At the end of trading this will help you verify
your transactions .
 Trade wisely by fallowing these simple rules .
Presented by Manzoor "Ghorzang" 21

22. Presented by Manzoor "Ghorzang" 22

23. The End
 Thank you for your cool attention
 Manzoor Ahmad “ghorzang’’
Ghorzang3@gmail.com
 manzooghorzang@yahoo.com
Presented by Manzoor "Ghorzang" 23

24. Presented by Manzoor "Ghorzang" 24