The stock exchange is where trading of shares is conducted through buying and selling. The major stock exchanges in India are the Bombay Stock Exchange, National Stock Exchange, and Multi Commodity Exchange of India. The Bombay Stock Exchange is the oldest in Asia and has the largest number of listed companies. The National Stock Exchange is fully automated and has over 1,500 locations across India. The Multi Commodity Exchange facilitates online trading for commodity futures and has the largest market share in India for gold, silver, and other commodities. Stock exchanges are important for commerce as they provide a mechanism for new companies to raise capital and for investors to buy and trade shares of both new and existing companies.

1. THE STOCK EXCHANGE

2. What is the stock exchange?

Stock exchange is that place where trading
of share is done in terms of sale and
purchase.

3. Classification:
Bombay stock exchange (BSE),
 National stock exchange (NSE),
 Multi commodity exchange of India ltd.
(MCX).


4. Bombay stock exchange (BSE):
•
•
•
•
The oldest stock exchange in Asia
Established as “The Native Share &Stock
Broker Association” in 1875.
In 1956, the BSE became the first stock
exchange to be recognized by the Indian
Government under the Securities Contracts
Regulation Act.
BSE has the largest number of listed
companies in the world.

5. National stock exchange (NSE):


NSE was set up by leading institutions to
provide a modern, fully automated screen
based trading system.
Incorporated in Nov. 1992 as a tax paying
company.

6. National stock exchange (NSE)?


Today NSE, network stretches to more than
1500 locations in the country and support
more than 2,30,000 terminals.
NSE is one of the largest interactive VSAT
based stock exchange in the world.

7. Multi commodity exchange of India
ltd. (MCX)


Multi Commodity Exchange of India Ltd
(MCX) is an independent commodity
exchange based in India
To facilitate online trading and clearing &
settlement operations for commodity futures
across the country.

8. Multi commodity exchange of India
ltd. (MCX)


MCX hold’s market share of over 80% of the
Indian commodity future market.
MCX is the world largest exchange in Silver,
second largest in Gold, Copper and Natural
Gas, and third largest in Crude Oil Futures.

9. The importance of stock exchange:
The stock exchange is a necessary aspect of
commerce world-wide,
 It is true that the flow of new capital soon
would slow to a trickle without it,
 The investment-banking business has built
up a highly efficient mechanism for the
initial sale of securities issued by a new
enterprise.


10. Advantages of Investing!
You can choose
companies in which
you want to invest
money
 Many companies
pay a dividend
 Opportunity to
make money

You can track your
investment growth
on the Internet or
newspaper
 You can plan your
future by investing
 Support our
economy


11. Disadvantages of Investing!
Not guaranteed to
make a profit
 You may lose your
future investment
plan

Current events can
play a major role in
the market
(September 11,
2001, etc)
 Companies may lie
about profits and
sales to persuade
investors (Enron,
Martha Stewart,
etc)


12. Investment Websites






http://www.nasdaq.com
 Stock Prices
http://www.nyse.com
 Stock Prices
http://www.younginvestor.com
 Stock Education
http://smg2000.org
 The Stock Market Game
http://nationalsms.com
 The National Stock Market Simulation
http://lei.ncee.net
 Learning, Earning and Investing Site for Text