5. Why do people invest in stocks?
• Stocks can appreciate in price, creating
capital gains, or an increase in the value
of your assets, which grow your wealth.
• Companies generate earnings, or profits
generated from providing goods and
services.
• Shareholders in companies are
compensated for their risk through a risk
premium
6. Stock price
•The stock price of a company is the
current market price of a single stock
in that company.
•Buyers put in bid price; Sellers put in
ask price.
8. What is stock market?
• A stock market or equity market is a public
entity for the trading of company stock and
derivatives at an agreed price.
• Two main sections: the primary and secondary
market. The primary market is where new
issues are first offered, with any subsequent
trading going on in the secondary market.
9. Stock exchanges
•The stocks are listed and traded on stock exchanges
which are entities a corporation or mutual
organization specialized in the business of bringing
buyers and sellers of the organizations to a listing of
stocks and securities together.
•Globally, there are many stock markets including the
famous New York Stock Exchanges ( NYSE),
NASDAQ, London Stock Exchange, HongKong Stock
Exchange etc.
•In India, the most famous stock markets are Bombay
Stock Exchange (BSE) and National Stock Exchange
(NSE).
10.
11. Stock Exchange Reforms in India
• Registering with SEBI has become mandatory
The foremost activity that was initiated by the
SEBI towards stock exchange reforms was the
registering of brokers and sub brokers
operating on the stock exchange
12. • Brokers and sub brokers has to hold
certificate issued by SEBI
• Purely prohibits inside trading activities,
which means the set of all unhealthy and
manipulative dealings and practices
13. • SEBI has allowed retail buying and
selling
Retail trading refers trading through a
nationwide, anonymous , order-driven
and screen based trading system of
stock exchange in the same manner in
which trading takes place in equities
14. • Dematerialization of shares become &
made compulsory after 1998
It is a the process of converting physical
form to electronic form so as to
facilitate faster trading and settlement
of transaction
• Pan card has made mandatory
15. • Entry load on M funds has been removed
Mutual Fund Companies incur some expenses to
float a fund and also they have many
administrative and operative expenses. So to
meet those expenses they collect a percentage of
fee from the investors, that is called loads.
• FII limits has been fixed by the SEBI
in government securities' 1500 crore
in corporate bonds 2000 crore
in infrastructure 2500 crore
16. • Retail investors can subscribe up to 1 lakh in
IPO. It sets up guidelines for development of
financial institutes
17. • SEBI allowed companies to buy back shares
Certain provisions in the companies act which
allow the shareholders to sell their shares
directly to the company and such provisions
are termed as buy back of shares.
18. • FII minimum portfolio should be minimum 10
crore
• SEBI made mandatory to issue securities at
fixed value
19. • Compulsory rolling was Introduced in 2000 to
reduce the time of settlement of transaction
means when you will get your stocks in your demat
account or in physical form. In a rolling settlement,
each trading day(T) is considered as a trading period
and trades executed during the trading day(T) are
settled on a T+2 basis i.e. trading day plus two
working days.
20. • Stock market liberalization is the decision by a
government to allow foreign investors to
purchase shares in local market and domestic
investors to purchase shares aboard
THANK YOU
