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Stock Exchange - Jhon Roi Sapian - Financial Management.pptx
1. SLIDESMANIA
SLIDESMANIA
Dr. Elmer V. Tena
Course Professor
Financial Management
Stock Exchange
Jhon Roi U. Sapian
Teacher I
Pagsangaan ES,
Parubcan District
2. SLIDESMANIA
SLIDESMANIA
Meaning of Stock Exchange
Topics to discuss
Purpose of Stock Exchange
How Stock Exchange works
Listing of Securities
Partial List of Publicly Listed Companies
How can we participate in
Stock Exchange
3. SLIDESMANIA
SLIDESMANIA
It is an organized secondary market where
securities like shares, debentures of public
companies, government securities, and bonds
issued by municipalities, public corporations,
utility undertakings, port trusts and such other
local authorities are purchased and sold
It is an entity which in the business of
bringing buyers and sellers of stock and
securities together.
Stock Exchange
4. SLIDESMANIA
SLIDESMANIA
Is to facilitate the exchange of securities
between buyers and sellers thus providing a
market place virtual or real.
Purpose of Stock Exchange
5. SLIDESMANIA
SLIDESMANIA
How Stock Exchange Work
Stock market does not have a physical
presence, it is a Virtual Market
Share brokers assembled in a place
called the “Trading Ring” and bought
and sold shares, this method is known
as Outcry Method
Technology has enabled the ring to be
located on a central computer which
has buyers and sellers attached to it
through a telecommunication network.
6. SLIDESMANIA
SLIDESMANIA
Stock exchange supplies a platform from
which to buy and sell shares in certain
listed companies.
Listing Agreement ensures that the
Company provides all the information
pertaining to its working from time to
time, including events that affects its
valuation, such as mergers,
amalgamations, and such other sensitive
matters.
Buyers and sellers indicate their intentions
through a computer at home or the office, their
own or their bróker’s.
Buyers’ and sellers’ orders are matched by the
central computer, and if quantities and prices
correspond, then a trade is set to be executed.
The entire process of sending the order to the
stock exchange computer, confirmation of
order and execution is communicated with in a
fraction of a second.
How Stock Exchange Work
7. SLIDESMANIA
SLIDESMANIA
Large volumes of trades are posible
because of 2 things:
1. Ease of Settlement.
2. Guarantee of Trades.
Stock market is known as the
“Barometer of Companies
Economy”
How Stock Exchange Work
The companies listed on stock
exchanges collectively contribute to
the countries GDP (Gross Domestic
Product)
8. SLIDESMANIA
SLIDESMANIA
Listing means admission of securities to
dealings on a recognized stock exchange of
any incorporated company, central and state
governments, quasi governmental and other
financial institutions/corporations,
municipalities, electricity boards, housing
boards and so forth.
Listing of Securities
9. SLIDESMANIA
SLIDESMANIA
The company desiring to get listing
has to enter into Listing Agreement
with the concerned stock exchange
and is required to pay the specified
listing fees.
Provide liquidity and marketablility
to listed securities and ensure
effective monitoring of trading for
the benefit of all participants in the
market.
Principal Objective of Listing
10. SLIDESMANIA
SLIDESMANIA
Recognized Stock Exchange
means a stock exchange being
recognizedby the national
government through the
Securities and Exchange
Commission (SEC)
Securities are bought and sold
in recognized stock exchanges
through members who are
known as Brokers.
The Price at which the
securities are bought and sold
on a recognized stock
Exchange is known as Official
Qoutation
11. SLIDESMANIA
SLIDESMANIA
At the time of public issue of shares or debentures
Securities of an Entity may
be listed at any of the
following stages
At the time of rights issue of shares or debentures
At the time of bonus issue of shares
Shares issued on amalgamation or merger
