2. SHARE MARKET
A share market or equity market is a public entity for the trading of
company shares and derivatives at an agreed price.
The stock exchange is a place where stocks are listed and where buyer
and sellers of the organizations to a listing of stocks and securities
together.
3. 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).
4. Major Stock Exchanges (Top 20 by Market
capitalization)as at 31 December 2012
MARKET
CAPITALISATION(USD
RANK 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
5. 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.
6. 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.
7. 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
8. 1.A person request ‘N’ number of shares of company A
2.The intermediate trading company X requests stock exchange for ‘N’
shares of company A
3.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.
9. BUYING AND SELLING TERMINOLOGIES
• DAY TRADING: Buying and selling the same stock or option
position in one day's 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.
