a brief note to get to know about stock exchange.

1. STOCK EXCHANGE
Presented by:- Arpit Daga
B.com(Hons.)

2. WHAT IS STOCK EXCHANGE ?
• An association which is established for the purpose of controlling
business in buying ,selling and dealing in securities.
• It provides services to stock brokers & traders to trade stocks(shares)
,bonds and securities.

3. FEATURES OF STOCK EXCHANGE
• It is an important constituent of capital market i.e., market for long-term
finance.
• It is a association of persons where they desirous of dealing in securities.
• Its membership is not open to everybody.
• The members of a stock exchange can buy and sell securities either as
brokers for & on behalf of their clients.
• The dealings in a stock exchange are under certain accepted code of
conduct i.e., rules and regulations.

4. FUNCTION OF STOCK EXCHANGE
• Help companies and government to raise funds from the investors
• Promote the habit of saving and investment
• Provide central and convenient meeting places for sellers and buyer of
securities
• Increase the marketability and liquidity of securities

5. LARGEST STOCK EXCHANGES
Indian Stock
Exchanges
• NATIONAL STOCK EXCHANGE
• BOMBAY STOCK EXCHANGE
• CALCUTTA STOCK EXCHANGE
• COCHIN STOCK EXCHANGE
• MULTI COMMODITY EXCHANGE
• DERIVATIVES EXCHANGE
• OTC EXCHANGE
• PUNE STOCK EXCHANGE
Other Stock Exchange
• NEW YORK STOCK EXCHANGE
• NASDAQ OMX STOCK EXCHANGE

6. MAJOR STOCK EXCHANGES OF INDIA
• Bombay Stock Exchange (BSE)
• National Stock Exchange of India(NSEI)

7. BOMBAY STOCK EXCHANGE
It is oldest and first stock exchange of India established in the
year 1875. First it was started opposite to town hall of Bombay
over 22 stock brokers. There are almost 5000 companies listed in
BSE. The stake holders in BSE are (Adani Ports, Coal India,
Bharti Airtel, ONGC,SBI Etc.)

8. NATIONAL STOCK EXCHANGE OF INDIA(NSE)
• The NSE of India is one of the leading stock exchange of India, covering
370 cities and towns in the country. It was established in1994 as a TAX
company. It was established by 21 leading financial institutions and
banks like the IDBI, ICICI, IFCI, LIC, SBI,etc.
• The National Stock Exchange replaced open outcry system, i.e. floor
trading with the screen based automated system.
• There are almost 1635 companies listed in NSE.

9. HOW THE MARKET WORKS ?
The two major stock markets of India have their own indices which helps
to find out that which market is in good condition. The indices are as
follows:-
 S&P SENSEX (BSE)
CNX NIFTY(NSE)

10. S&PSENSEX
Sensex is the oldest market index for equities; it includes shares of 30
firms listed on the BSE (Adani Ports, Coal India, Bharti Airtel, ONGC,SBI
Etc.) which represent about 45% of the index's free-float market
capitalization.
• Calculation of SENSEX is based on the Free-Float Methodology.

11. CNX NIFTY(NSE)
• It is the broad index of NSE, NIFTY normally comprises of 50 stocks but right
now there are 51 stocks. It is known as NIFTY 50 or CNX Nifty. It is owned and
managed by India Index Services and Products Ltd. (IISL)
• Some of the listed companies of NIFTY are Ambuja Cements Ltd., Bosch Ltd.
AUTOMOBILE, Hindalco Industries Ltd., Lupin Ltd. PHARMA, Tata Motors
(DVR)
• Calculation of NIFTY is as same as SENSEX but the base taken is of year 1995
i.e. 100.

12. STAGES OF STOCK MARKET……!
• As we all know that this is a market so there are
stages of it which are as follows:-
a) Boom – it refers to a period of time where a market
is in a situation of rapid growth or increasing
rapidly. It is denoted by the BULL symbol.
b) Recession- it is opposite to boom means the
situation or time where a significant fall down in
economy is recorded. It is denoted by the symbol of
BEAR.