INDIAN STOCK EXCHANGE<br /><ul><li> Indian stock exchanges are a structured market place for the proper conduct of trading in company stock (i.e Equity Shares) and other securities.
There are 23 recognized stock exchanges in India..</li></li></ul><li>STOCK EXCHANGES OF INDIA<br /> Bombay Stock Exchange (BSE)<br /> National Stock Exchange (NSE)<br />OTC Exchange Of India<br />Other Stock Exchange<br />
HISTORY OF STOCK MARKET<br /> 1965 -BSE got recognition from the Government of India. <br /><ul><li>1875 –Trading was started with 318 members in BSE.
1990 -BSE crossed the 1000 mark for the first time.
1992 -It crossed 2000, 3000 and 4000 figures.</li></ul> 1999-It crossed 5000. <br /><ul><li>2005- It crossed 7000.</li></li></ul><li>HOURS OF OPERATION OF (BSE)<br />Beginning of the day session 8:00 – 9:00 <br />Login session 9:00 – 9:30<br />Trading session 9:55 – 15:30<br />Position transfer session 15:30 – 15:50<br />Closing session 15:50 – 16:05<br />
OBJECTIVE OF SENSEX<br />To measure market moments<br />Benchmark for funds performance<br />For index based derivative products<br />
What is sensex<br />The Sensex, Short form of the BSE-Sensitive index, is a“ Market capitalization-weighted“ index of 30 Stocks representing a sample of large ,well established and financially sound companies . <br />
How to Sensexcalculate<br /><ul><li>The calculation of SENSEX involves dividing the total market capitalization of 30 companies in the Index
It keeps the Index comparable over time and is the adjustment point for all Index maintenance adjustments.
During market hours, prices of the index scraps, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time.</li></li></ul><li>How it works.?<br />Stock Exchange of India account for most of the trading in shares in India. Sensex is nothing but the index of 30 companies chosen from all the major sectors. Sensex is a price indicative index of shares listed on BSE. It is a weighted average of prices of 30 scripts which form part of SENSEX. Here it is important that SENSEX consists only 30 scrip's.<br />
Stock Exchange<br /> A Stock exchange is a corporation on mutual organization which provides ”Trading” facilities for stock brokers and traders, to trade stock and other securities.<br />
The Role of Stock Exchange<br /> Raising capital for business- Equity<br /> Profit sharing-Dividend <br /> Corporate governance-SEBI<br /> Mobilizing saving for investment.<br /> Facilitating company growth. <br />
Common Terms of Stock Exchange<br /> Broker<br /> Bull market<br /> Investors<br /> Bear market<br /> Beta<br />
How Stock Exchange Operate<br /> With the help of stock broker, buyers and sellers participating in a stock market carry out their selling parties take there orders to the stock exchange floor and then find broker representing participates agree to trade at the fixed price, the transaction takes place.<br />
RELATION BETWEEN SENSEX AND THE ECONOMY<br />The sensex is indicator of the Indian economy. <br />The strong relationship exist between the sensex and the economy.<br />Sensex basically represents the stock prices of companies traded in the NSE.<br />
The stock prices are determined by the profit earnings of the company.<br />The profit earning companies are directly related to the economic policies framed by the govt.<br />So. If the companises perform well, the stock of these companies also should rise.<br />
IS INDIAN STOCK MARKET RELATED WITH EXCHANGE RATE AND INFLATION?<br />The long term relationship of stock prices with exchange rate and inflation in indian context.there are numerous studies on the relationship of stock indices with macro economic variables.<br />The dynamic linkage between exchange rate and stock price has been subjected to extensive research for over a decade and attracted considerable from reseachers world wide during the asian crisis of 1997 to 98.<br />
The casual relationship between returns in stock market and forex market in india have been derived.<br />
HOW SENSEX CAN EFFECT THE INDIAN ECONOMY?<br /> An indicator of the faith of investors.if it is high it shows that economic conditions are quite good and the future is prosperous.<br /> Foreign investors get attracted towards investing in the country because they think the country as safe and profitable place to invest.so,this bring foreign investment in country which cause further development of economy.<br />
When sensex is going down than neither local nor foreign investor will like to go for new venture. It is a cycle in which an emerging sensex leads to better economy which leads to furthur developing the country.<br />
The Purpose Of a Stock Exchange is to facilitate the exchange of securities between buyers and sellers, thus providing a Market place (Virtual or Real). The Exchange provide real-time trading information on the listed securities, facilitating price discovery. <br />
<ul><li>New York Stock Exchange (NYSE)</li></ul>NYSE`s trading floor Located at 11 wall street , New York City.<br />It is the largest stock exchange in the world by United States Dollar Value.<br />The NYSE origin can be traced to 17 May 1792. <br />
Presently, Marsh Carter is the chairman of New York Stock Exchange.<br />
Trading in NYSE<br />New York Stock Exchange also known as “The Big Board”provides means for buyers and sellers to trade shares of stock in companies registered for public trading.<br /> NYSE opens for trading from MONDAY TO FRIDAY.<br />
NYSE`s stock can be traded via its electronic “Hybrid Market” customers can send orders for immediate electronic execution.<br />
<ul><li>Tokyo Stock Exchange</li></ul>It is Located In Tokyo, Japan and second largest stock exchange in the world as it 2414 Companies listed with $ 3.41 trillion capital.<br />It was build on 15 May 1878 in Tokyo.<br />The main Trading room of Tokyo Stock Exchange where trading is being completed by Computers.<br />
TSE`s trading session happens all days except sunday and saturday from 9 am to11 am and 12.30pm to 3.00pm<br />Stock as on current<br />
<ul><li> London Stock ExchangeThe main office of LSE in London where Physical Trading happen. </li></li></ul><li>London Stock Exchange (LSE) is located in London.Founded in 1801, it is one of the largest stock exchange of the world. <br />The Stock Exchange building is now in Paternoster Square. It moved here in 2004 to smaller premises because with the modern technology available the trading floor, and face to face dealing was no longer needed.<br />
<ul><li>Stock Market Crash</li></ul>A stock market crash is often defined as a sharp dip in share prices of equities listed on the stock exchanges. <br />In parallel with various economic factors :><br /><ul><li>Panic and Investing Public loss of confidence.</li></ul>Stock Market Crashes end Speculative economic bubbles.<br />
There have been famous Stock Market Crashes that have ended in the loss of billions of dollars and wealth destruction on a massive scale are : - 1. Wall Street Crash of 19292. Stock Market Crash of 1973 – 43. Black Monday of 19874. Dot –com Bubble of 20005. Stock market of 2008 the Great Recession<br />
Must DO in Stock Market<br /><ul><li> Don`t panic
Don`t take too much risk</li></li></ul><li>If you are serious about making money by stock investment , then you must keep yourself updated with stock market, business news and company reports.So be aware and then invest. ..<br />