3. CONTENTS
WHAT IS STOCK EXCHANGE?
FEATURES OF STOCK EXCHANGE
IMPORTANT FUNCTION OF STOCK EXCHANGE
HISTORY OF STOCK EXCHANGE
SPECULATION AND SPECULATOR
ANALYSIS OF PORTFOLIO
CONCLUSION
4. WHAT IS STOCK EXCHANGE?
Definition of stock Exchange :
The securities regulation act of 1956 defined stock exchange “an association,
organization, or a individual which is established for the purpose of assisting,
regulating, and controlling business in buying, selling and dealing in securities.”
5. FEATURES OF STOCK EXCHANGE
It is an organized market
It is a securities market
It is an important market for long-term finance
Stock exchange is a voluntary association, its membership is not open to
everybody
In a stock exchange, only the members can deal in i.e., buy & sell
securities
6. IMPORTANT FUNCTION OF STOCK
EXCHANGE
Increase the marketability and liquidity of securities
Smoothen price movement
Help capital formation
Help companies and government to raise funds from the investers
Provide forecasting service
7. HISTORY OF STOCK EXCHANGE
The stock exchange was established by “East India company” in 18th century.
In India it was established in 1850 with 22 stock brokers opposite to town hall
Bombay. This stock exchange is known as oldest stock exchange of Asia’
8. BROKER AND JOBBER
BROKER : A broker in a stock exchange, is a commission agent who
transacts business in securities on behalf of non members.
JOBBER : He is not allowed to deal with the public directly. He deals with
brokers who are engaged with the investors. Thus, the securities is bought by
the jobber from members and sells to members who are operating on the stock
exchange as broker.
9. DIFFERENCE BETWEEN A JOBBER AND
BROKER
JOBBER
A jobber is an independent dealer in securities,
purchasing or selling securities on his own
account
A jobber deals only with the broker ,does not
deal with the general public
A jobber earns profit from his operations i.e.,
buying and selling activities
BROKER
A broker is a middleman between a jobber and
clients
A broker can buy from jobbers and sells to
clients
A broker gets only commission for his deals
10. SPECULATION AND SPECULATOR
SPECULATION : It is the transaction of members to buy or sell securities on stock
exchange with a view to make profits to anticipated raise or fall in price of
securities
SPECULATOR : The deals in stock exchange who satisfy in speculation are called
speculator. The different types of speculators are
-> BULL
-> BEAR
11. BULL
He is speculator who expects the future raise in price of securities he buys
the securities to sell them at future date at the higher price .
He is called as bull because his activities resembles as a bull ,as the bull
tends to throw its victims up in the air through its horns. In simple the bull
speculator tries to raise the price of securities by placing a big purchase
orders
12. BEAR
He is speculator who expects future fall in prices, he does an agreement to
sell securities at future date at the present market rate.
He is called as bear because his attitude resembles with bear ,as the bear
tends to stamp its victims down to earth through his activities
13. LARGEST STOCK EXCHANGES
IN THE WORLD
LONDON STOCK EXCHANGE
NEW YORK STOCK EXCHANGE
AUSTRALIA STOCK EXCHANGE
IN INDIA
NATIONAL STOCK EXCHANGE
BOMBAY STOCK EXCHANGE
PUNE STOCK EXCHANGE
14. HOW TO SEE THE VALUE OF HARES IN
STOCK EXCHANGE
SENSEX is an indicator to checkout in BSE
NIFTY is an indicator to checkout in NSE
15. LATEST NEWS OF BSE AND NSE
Most profitable in BSE is NTPC (National Thermal Power Corporation)
Most profitable company in NSE will be Bajaj Auto and Adani ports
16. THE DAILY GRAPH OF THE COMPANIES
WILL BE SHOWED IN FOLLOWING
MANNER
17. HOW STOCK EXCHANGES GET MONEY
The stock market is a place where companies and investors can buy and sell
shares of stock. Companies use the stock market to raise money for their
business by selling ownership stakes to investors
18. HOW TO DEALAND INVEST IN STOCK
EXCHANGE
In order to deal with a securities one as to have an account called Demat a/c or Trading
a/c. It is just like a bank account. Same procedure of opening the bank account is
followed to open the a/c. But all the banks does not give this facility. After demat a/c or
Trading a/c is opened then the securities is bought and sold. The banks which gives
facility of demat a/c in India is
ICICI Bank
HDFC Bank
Bank of Baroda