SHARE MARKETA share market or equity market is a public entity for the trading ofcompany shares and derivatives at an agreed price.The stock exchange is a place where stocks are listed and where buyerand sellers of the organizations to a listing of stocks and securitiestogether.
HISTORY OF SHARE MARKET During the American Revolution, the Colonial Government needed money to fund its wartime operations they were selling bonds and parts or shares of their own companies. Wall Street was becoming a major center of these transactions, and in 1792 twenty-four men signed an agreement that started the New York Stock Exchange (NYSE).
Major Stock Exchanges (Top 20 by Market capitalization)as at 31 December 2012 MARKET CAPITALISATION(USDRANK STOCK EXCHANGE ECONOMY HEADQUARTERS BILLIONS) United States/ 1 NYSE Euronext Europe New York City 14,085 United States/ 2 NASDAQ OMX Group Europe New York City 4,582 3 Tokyo Stock Exchange Japan Tokyo 3,478 4 London Stock Exchange United Kingdom London 3,396 5 Hong Kong Stock Exchange Hong Kong Hong Kong 2,831 Shanghai Stock Exchange 6 China Shanghai 2,547 7 TMX Group Canada Toronto 2,058 8 Deutsche Börse Germany Frankfurt 1,486 Australian Securities 9 Exchange Australia Sydney 1,386 10 Bombay Stock Exchange India Mumbai 1,263 National Stock Exchange of 11 India India Mumbai 1,234 12 SIX Swiss Exchange Switzerland Zurich 1,233 13 BM&F Bovespa Brazil São Paulo 1,227 14 Korea Exchange South Korea Seoul 1,179 15 Shenzhen Stock Exchange China Shenzhen 1,150 16 BME Spanish Exchanges Spain Madrid 995 17 JSE Limited South Africa Johannesburg 903 18 Moscow Exchange Russia Moscow 825 19 Singapore Exchange Singapore Singapore 765 20 Taiwan Stock Taiwan Taipei 735
BASIC TERMINOLOGEIS A share of stock is literally a share in the ownership of a company. Assets include everything the company owns (buildings, equipment, trademarks), and earnings are all of the money the company brings in from selling its products and services. EXCHANGES are where the sellers are matched with buyers to both facilitate trading and to help set the price of the shares. Sensex is an index,basically a indicator that gives the idea about whether most of the stocks are gone up or down. Nifty is an indicator of all the major companies of NSE.
STOCK EXCHANGE PHYSICAL VIRTUAL LISTED EXCHANGE EXCHANGE EX:Newyork Stock EX:NASDAQ Exchange• PHYSICAL EXCXHANGE: Also referred to as a listed exchange – only stocks listed with the exchange may be traded, with a hybrid market for placing orders both electronically and manually on the trading floor.• VIRTUAL LISTED EXCHANGE: Trading is done over a computer network.
HOW SHARE MARKET WORKS INDIVIDUAL TRADING COMPANY (BUYER)Note: Member of X 1 (MEDIATOR X) Deposited in X 6 5 2 EXCHNANGE 4 NETWORK(STOCK EXCHANGE) COMPANY – A (SELLER) 3
1.A person request ‘N’ number of shares of company A2.The intermediate trading company X requests stock exchange for ‘N’ shares of company A3.The exchange process request in the name of company X.4.The share of company A is given.5.The exchange sells ‘N’ shares of company A to company X.6.The company X registers ‘N’ shares in the name of individual.
BUYING AND SELLING TERMINOLOGIES• DAY TRADING: Buying and selling the same stock or option position in one days trading session, thus ending the day with no position.• DELIVERY: When referring to stock options, delivery is the process of delivering stock after an option is exercised.• SHORT: As a noun refers to people who have sold stock or options without owning them first. As an adjective, it refers to a position of short stock or options. Compare to long.• STOP LOSS:A type of order that turns into a market order to buy or sell stock or options when and if a specified "stop" price is reached.