radhani collage project

1. Projectreporton
PRESENTATION OF REPORT STOCK
EXCHANGE AND ITS FUNCTION
A Project Submitted
In partial Fulfillment of the Requirements for the
+2 Second year Commerce higher secondary Examination
of
CHSE, ODISHA
For the subject of
Business Studies And Management
Submitted By-
RABINDRA TUDU
College Roll No-IC18-125
CHSE Roll No-
Underthe Guidanceof
Dr. Maheswar Parida
DEPARTMENT OF COMMERCE
B.J.B HIGHER SECONDARY SCHOOL
Bhubaneswar, Odisha
2019-20

2. INTRODUCTION
Marketing mix is used to describe the combination of the
fair inputs which constitute the core of a company’ s marketing
system. It represents the total marketing programme of an
enterprise. In the words of Philip Kotler “Marketing mix are the
sets of marketing tools that firm uses to pursue its marketing
objectives in the target market.”
William J. Stanton. “Marketing mix is the term used to
describe the combination of the four inputs which constitute the
core of a company’s marketing system, the product, the price
structure, the promotional activities and the distribution system.”
Elements of marketing mix
1.Product A product means anything offered for value which
is offered to the market satisfy a need or a want.it includes
branding, packing, labelling ect.
2. price Price is the amout of money which the customers have
to pay to obtain the product . It is an important element of
marketing mix because any change in price can bring or shift the
customer to competitors’product .price mix refers to all
important decisions relating to fixing price of product.
3. Place Place or physical distribution includes activities that
the make firms products available to targeted customer . place
mix involves physical movement of goods from producers to
consumer and regarding channel for distribution.
4. promotion Promotion refers to all those marketing
activating which are aimed to increase sales values of product .
Promotion mix refers to the decisions or tools which aim at
persuading the customers to buy the product. The tools of
promotion includes advertising ,sales promotion ,personal selling
,publicity, etc.

3. DECLARATION
I declarethat the work presented in this project titled “A
project repoter stock exchanges and its functions”
submittedto theCouncilofHigher SecondaryEducation,
Odisha for the partial fulfillment of +2 Second Year
Commerce Higher Secondary Examination is my
original work. I have not submitted the same work at any
other place for any other purpose.
Bhubaneswar
RabindraTudu

4. CERTIFICATE
This is to certify that the work contained in the project titled “A project
reporter stock exchanges and its functions” by Rabindra Tudu has
been carried out under my supervision and that this work has not been
submitted elsewhere.
Dr. Maheswar Parida
Department of Commerce
B.J.B College,
Bhubaneswar

5. ACKNOWLEDGEMENT
I take upon this opportunity to acknowledge the many people whose invaluable
contribution has made this project work happen.
I am deeply indebted to my mentor Dr.Maheswar Parida for guiding me throughout
this work with his unparalleled knowledge and wisdom. I would like to thank him/ her
for all his efforts in making this project a reality.
I further thank to the Department of Commerce, B.J.B College Bhubaneswar for all
their assistance at the time of need.
I owe my sincere gratitude towards my family and my beloved parents for their
unconditional support.
My heartfelt thanks to my friends who have always been there for me to guide and
support.
Finally, I would like to wind up by paying my heartfelt gratitude towards the almighty
God for blessing my path.
Rabindra Tudu
Roll No.- IC18-125

6. ABSTRACT
A stock exchange is an exchange where traders and stock brokers buy and sell shares of stock,
bonds and other securities. The securities trade on a stock exchange includes shares issued by
companies unit trusts derivative, poded investment products and bonds. A stock exchange
plays an important role in the economy. It helps to raise capital for business, mobilize savings
for investment facilitates the growth of companies and enables profit sharing. The exchange
role is to monitor the market to ensure that it works efficiently, fairly and transparently.
Bombay exchange is the first stock exchange in India. It established on 1876.

7. INTRODUCTION
An instrument that signifies an ownership position in a corporation and represents a claim on
its proportional share in the corporations assets and profits. The securities regulation act of
1956 defined stock exchange as an association, organization, or a individual which is
established for the purpose of assisting, regulating and controlling business in buying, selling
and dealing I securities. A stock exchange securities exchange or bourse, is a facility when
stock brokers and traders can buy and sell securities such as shares of stock and bonds and
other financial instruments, many stock exchanges today used electronic trading in place of the
traditional floor trading.
OBJECTIVES
i. Introduction to stock and stock exchanges with its definition.
ii. History of stock exchange in India.
iii. Features of a stock exchange.
iv. Effects on economy.

8. FUNCTIONS OF STOCK EXCHANGE
The stock exchanges play an important role in the economic development of a country. The
importance of stock exchanges will be clear from the functions they perform and are discussed
as follows :
1. Providing liquidity to securities : The stock exchanges provide a place where shares
and stock are converted into cash. The exchanges provide a place where shares and
stock are converted into cash. The exchanges provide are always available and those
who are in need of hard cash can sell their holdings. Had this not been possible then
many persons would have feared of blocking their savings in securities. It is because
of exchanges that many persons interest in securities and they can again convert them
into cash.
2. Ensuring safety of transactions : The dealings at stock exchanges are governed by well
defined rules and regulations of securities contract Act, 1956. There is no scope for
manipulation transaction. Every contract is done according to the procedure laid down
and there is not fear in the minds of contracting parties. The safety in dealing brings
confidence in the minds of all concerned parties and helps in increasing various
dealings.
3. Determines prices of securities : A stock exchange helps in determining prices of
securities through the forces of demand and supply. Under the existing online screen
based electronic trading system, computer screens display constant information on
prices of securities.
4. Contributes to Economic Growth : A stock exchanges is a market in which existing
securities are purchased and sold. Through the process of reinvestment and
disinvestment savings get channnelised into the most productive avenues. This leads
to capital formation and economic growth.
5. Spread equity cult : The stock exchanges play a vital role in ensuring wider share
ownership by regulating new issues, better trading practices and taking effective steps
in education to the public about investment.
6. Provides scope for speculation : A stock exchange provides a scope for speculation in
a restricted and controlled manner. A certain degree of healthy speculation is necessary
for ensuring liquidity.

9. TRADING PROCEDURE AT STOCK EXCHANGE
The buying and selling at stock exchanges is not allowed to outsiders. They have to approach
brokers who are members of the exchange and the dealings can only be done through them.
The following procedure is followed for dealings at exchanges :
1. Selection of Broker : The first thing to be done is to select a broker through wheom the
purchase or sale is to be made. The intending investor or seller may approach his bank
for this purpose. The banks have appointed their own brokers at exchanges and they
contract for dealings on behalf of their customers. On a recommendation from the bank
the clients account is opened by the broker. The bank assures about the financial
condition of the client.
2. Opening Demand Account : The securities are held in the electronic form by a
depository. The opening of a demand account is essential for stock exchange
transactions. Demand account refers to an account which an Indian citizen most open
with the depository participants to trade enlisted securities in electronic form. The
securities are held in an electronic form by the depository and depository interacts with
the investors through depository participants. The depository participant maintains the
account of securities and informs the account status to the investor from time to time.
3. Placing on order : After selecting the broker the client places an order for purchase or
sale of securities. The broker also guides the client about the type of securities to be
purchased and the proper time for it. If a client is to sell the securities then the broker
tells him about the favourable time for sale. The broker is told to purchase share, their
number and price to be paid. Sometimes, a definite price is given on which the purchase
is to be made, sometimes the minimum price to be paid is told etc. the broker will be
try to make purchases as far as possible to the nearest price offered by the client. The
broker is given choice for bargaining. The same type of choice is given to the broker
for selling the securities.
4. Executing the order : The trading floor of the stock exchange is divided into different
parts known as trading posts. Different post deal in different type of securities. The
authorized dark of the broker goes to the concerned post and expresses his intention to
buy and sell the securities. A deal is struck when the other party also agrees. The
bargain is darks. The bargain is noted by both the parties in their note books. The slip
giving brief details of the bargain is put in a box for making announcement in the
official price list for publicity.

10. 5. Settlement : The deal has to be settled and finalized T + 2 day. It means if a trade has
taken place on Monday, then it must be settled Wednesday. All trading takes place
from Monday to Friday between 9.55 AM to 3.3 PM (Indian Standard Time). The
delivery of shares is made in dematerialized from. All stock exchanges have own
clearing houses which assume all settlement risk.
BENEFITS OF STOCK EXCHANGE
Going public is not an easy task. In deciding whether to seek a listing, a company should
consider the alternative financing needs available and the benefits versus the drawbacks of
listing whether to seek a listing, a company should consider the alternative financing needs
available and the benefits versus the drawbacks of listing.
(i) Creating a market for the company shares.
(ii) Enhancing the status and financial standing of the company.
(iii) Increasing public awareness and public interest in the company and its products.
(iv) Providing the company with an opportunity to implement share option schemes for
their employees.
(v) Accessing to additional fund raising in the future by means of new issues of shares
or other securities.
(vi) Facilitating acquisition opportunities by use of the company’s share.
(vii) Offering existing shareholders a ready means a realizing their investments.
How does a stock exchange operate ?
With a help of stock brokers, the buyers and sellers participating in a stock market carry out
their transactions. The brokers representing selling parties take their orders to the stock
exchange floor and then find brokers representing parties willing to invest in similar stocks. If
both parties agree to trade at the fixed price, the transaction takes place.

11. STOCK EXCHANGE OF INDIA
Every stock exchange has a specific location in India there are 24 stock exchanges at present.
(i) National Stock exchange of India.
The national stock of exchange of India is the leading stock exchange of India,
located in Mumbai. The NSE established in 1992 as the first dematerialized
electronic exchange in the country. NSE was the first exchange of the country to
provide a modern, fully automated screen, based electronic trading system which
offered easy trading facility to the investors spread across the length and breath of
the country.
(ii) Bombay stock exchange .
The Bombay stock exchange is an Indian stock exchange located Dalar Street,
Mumbai. Established 1875, the BSE is Asias first stock exchange. The BSE is the
world’s 70th largest stock exchange. The BSE helped develop the country’s capital
markets including the retail debt market and helped grow the Indian corporate
sector.
(iii) Ludhian Stock exchange
(iv) Madhya Pradesh Stock exchange
(v) Madras Stock exchange
(vi) Mangalore stock exchange
(vii) MXC stock exchange
(viii) Meerut Stock exchange
(ix) OTC exchange of India
(x) Pune stock exchange
(xi) United stock exchange of India
(xii) UP stock exchange
(xiii) Vadodara stock exchange
History of stock exchange
The first organized stock exchange of India was started in Bombay when the native share stock
brokers Association knnwn as Bombay Stock Exchnage was formed by the brokers in Bombay
in 1875. BSE was Asia’s oldest stock exchange. In 1894 the Ahmadebad stock exchange was
started in 1908. The number of stock exchange rose from 7 in 1939 to 21 in 1945. There were
also illegal ‘Dabha’ Market in which stocks and share were also bought and sold.
Under the securities contract Act of 1956 the Government of India has so far recognized 20
stock exchanges. Bombay is the premier exchange of in the country.

12. FINDING
1. Stock exchange is an organized market for buying and selling corporate and other
securities.
2. A stock is basically a type of securities that represent a piece of ownership in a
company.
3. A stock exchange facilitates initially offered new securities to investor from new
companies for the purpose of capital formation.
CONCLUSION
We have learn about stock and stock market in India of which National Stock exchange and
Bombay Stock Exchange are the major ones.
We have also seen the features and characteristics of stock exchange along with the powers of
SEBI (Securities Board of Exchange in India)

13. REFERENCE
1. Internet source by Google.
2. Book Business Studies and Management R.K. Sharma, Shashi K Gupta, Rahul Sharma
(KALYANI PUBLISHER)
3. www.wikipedia.com
4. www.slideshare.net
5. www.learnpick.in
6. www.brainly.in
7. www.quora.com

14. INDEX
Sl. No. Topic Page no.
1. Abstract 1
2. Introduction, Objective 2
3. Function of stock exchange 3
4. Trading procedure of stock
exchange
4-5
5. Benefits of stock exchange
How does stock exchange operate
5
6. Stock exchange in India,
History of stock exchange
6
7. Finding, Conclusion 7
8. Reference 8