a brief about any stock exchange..

1. A
brief about
“ stock market”
made by –
Swapnil Jain , Mayank
Pathak
mechanical B
M .I .T.M

2. • Our goal in this discussion is to
get a “big picture” overview of :
– What is a stock
– Who owns stocks
– How a stock exchange works, and
– How to read and understand the stock
market information.
– Sensex and nifty.

3. What is stock market ???
• Public entity (a loose network of economic transactions).
• Mutual funds, banks, insurance
companies
• Trading (BUYING & SELLING)of stock (SHARES) .
• Holding stocks for long term.
• Trading intra day .
• Role of Stock exchange .
• Vc ‘s investment .

4. Stock exchange :
• stock brokers
traders to trade stocks, bonds, and other
securities
• offering to investors is done in the
primary market - broker
secondary market - sub broker
In India there are 23 recognized stock exchanges .
B S E & N S E are the most important .

5. World stock exchanges -

6. Can you list your own company in stock market ???
A company with annual turnover more than 100 crore can be listed in one
of stock exchanges in India and should follows the rules and regulations in the law
book in SEBI India .

7. Market capitalization
• The Market capitalization of a company is
determined by multiplying the prize of its stock
by the no. of such socks issued .
And thus on this basis the company listed in diff. group
• AAA - Highest value firm.
• AA - Higher value firm.
• A - Adequate safety
• BBB - Moderate safety
• BB - In Adequate safety
• BC & D- High risk and default

8. How these transitions are done ???
• During 1980s trading was done by post .
• And now electronic transitions are done .
• Buyer put his price on the screen and if the
same time there is any seller of the stock for
the same price the transitions will be done .

9. Who decides the price of stock ??
• The investors decides the price .
• The base price of any share is decided by the
company on the basis of its annual
capitalization .
• And when the stocks are introduced for public
The buyer and seller decides the price .
DEMAND α PRICE

11. Profit / loss -
• Selling the stock less than the price of buying price
leads to loss .
• Risk .
• Profit occurs when we make the deal with selling
price more than purchase price.

12. Analyzing the market
• Sensex
• Nifty

13. SENSEX
• calculated since 1986.
• calculated on the basis of capitalization
methodology.
• year 2003 the methodology.
• Now the sensex is based on free float market cap
of 30 stocks traded on bse relative to the base
value and is calculated for every 15 seconds.

14. Companies listed in BSE-
1. BAJAJ AUTO LIMITED 26. Tata Motors Ltd.
2. Bharti Airtel Ltd. 27. Tata Power Co. Ltd.
3. Bharat Heavy Electricals Ltd. 28. Tata Steel Ltd.
4. Cipla Ltd. 29. Tata Consultancy Services Ltd.
5. Coal India Ltd. 30. WIPRO LTD.
6. DLF Ltd.
7. Housing Development Finance Corp.Lt
8. HDFC Bank Ltd.
9. Hero MotoCORP Ltd.
10. Hindustan Unilever Ltd.
11. Hindalco Industries Ltd.
12. ICICI Bank Ltd.
13. Infosys Ltd.
14. ITC Ltd.
15. Jaiprakash Associates Ltd
16. Jindal Steel & Power Ltd.
17. Larsen & Toubro Ltd.
18. Mahindra & Mahindra Ltd.
19. Maruti Suzuki India Ltd.
20. NTPC Ltd.
21. Oil And Natural Gas Corporation
22. Reliance Industries Ltd.
23. State Bank Of India,
24. Sterlite Industries (India) Ltd.
25. Sun Pharmaceutical Industries Ltd.

16. NIFTY
• In April 1993, it was recognized as a stock exchange under
the [[Securities Contracts (Regulation) Act], 1956.
• The National Stock Exchange (NSE)is stock
exchange located at Mumbai, India.
• It is in the top 20 largest stock exchanges in the world
by market capitalization and largest in India .
• NSE has a market capitalization of around US$1 trillion.
• the NSE's key index is the S&P CNX Nifty, by market
capitalization.

17. NSE listed companies-
1. ACC 22. HUL 43. SIEMENS
2. Ambuja cements 23. ICICI BANK 44. STERLITE IND
3. Asian paints 24. IDFC 45. SUN PHA
4. Axis bank 25. INFOSYS 46. TATA MOTO.
5. Bajaj Auto 26. ITC 47. TATA POWER
6. Bank of baroda 27. JINDAL STEELS 48. TATA STEEL
7. Bharti airtel 28. JAYPEE ASS. 49. TCS
8. BHEL 29. KOTAK MAH BANK 50. WIPRO
9. BPCL 30. L & T
10. Cairn India 31. MAH & MAHINDRA
11. Cipla 32. MARUTI SUZUKI
12. Coal india 33. NTPC
13. DLF 34. ONGC
14. DR Reddys 35. P N B
15. GAIL 36. POWER GRID
16. GRASIM IND 37. RANBAXY LABS
17. HCL TEHNO 38. RELIANCE INDIA
18. HDFC 39. RELIANCE INFRA
19. HDFC BANK 40. SAIL
20. HERO Motocop 41. SBI
21. Hindalco 42. SESA GOA

18. Who provide security to our money
???
SECURITY AND EXCHANGE BOARD OF INDIA
• SEEKS ALL STOCK TRANSITIONS IN INDIAN MARKET.

19. Powers & functions of
powers
• to require the stock exchange to amend their by−laws.
• inspect the accounts and call for periodical returns from stock exchanges.
• compel certain companies to list their shares in one or more stock exchanges.
• levy fees and other charges on the intermediaries for performing its functions.
• grant license to any person for the purpose of dealing in certain areas.
• prosecute and judge directly the violation of certain provisions of the companies Act.
functions
• quasi-legislative
• quasi-judicial
• quasi-executive
It conducts investigation and enforcement action in its executive function and it passes
rulings and orders in its judicial capacity

20. Benefits of stock exchange to community
• Assist the economic development by providing a
body of investors.
• Encourages capital formation.
• Government can undertake
projects of national importance and social values
raising funds through the sale of its securities on
the stock exchange .

21. Benefits of stock exchange to the
company -
• The market price of securities is likely
to be higher in relation to its earning
dividends and property values . This
raises the bargaining power of the
company in the events of the takeover,
merge or amalgamation.

22. Important source for information -
special thanks to Mr. larry
page for his innovative
creation “ The Google”
our www.sharekhan.com
Presentation partner : www.wikipedia.com
SMC INDIA www.nasdeq.com
www.nyse.com
www.smcindia.com