The world of stock market

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The world of Stock Market. Gives the brief of Indian stock market.

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The world of stock market

  1. 1. THE WORLD OF STOCK MARKET<br />
  2. 2. First step into <br /> Stock market!!!!<br />
  3. 3. Things that we would follow<br />What is stock market all about<br />Their working<br />The market functions<br />Methods<br />Calculations<br />New ideas<br />End<br />
  4. 4.
  5. 5. TYPES OF ORGANISATIONS<br />PRIVATE<br />LIMITED<br />PSU’S<br />
  6. 6. What is the stock exchange?<br /> A stock market, or (equity market), is a private or public market for the trading of company stock and derivatives of company stock at an agreed price ; these are securities listed on a stock exchange as well as those only traded privately<br />
  7. 7. the world around us<br />
  8. 8. Bse-bombay stock exchange<br />Situated at the Dalal Streets<br />Started in the year 1875<br />Annual transaction about 1.79$ <br /> trillion<br />Starts from 9:55 am till 3:00 pm<br />Has all the companies of India listed<br />
  9. 9. SENSEX<br />Also known the sensitive index<br />The index for the BSE companies<br />The index counts on account of<br /> the “BSE 30” companies<br />
  10. 10. National stock exchange<br />Mumbai-based stock exchange<br />Largest stock exchange in India in terms of daily turnover <br />1.46 total turnover<br />Trade time same as the BSE<br />It is mutually owned<br />
  11. 11. S&P CNX NIFTY (NSE)<br />The index for the NSE<br />Chosen on the basis of “NSE-25”<br />
  12. 12. Importance of the market<br />Function and purpose<br />Relation of the stock market to the modern financial system<br />The stock market, individual investors, and financial risk<br />The behavior of the stock market<br />Irrational behavior<br />Crashes<br />
  13. 13. INTRODUCTION to the market <br />The market for long term securities like bonds,<br /> equity stocks is divided into PRIMARY MARKET and SECONDARY MARKET.<br /><ul><li>PRIMARY MARKET</li></ul> Deals with the new issues of securities. <br /><ul><li> SECONDARY MARKET</li></ul> Deals with outstanding securities. <br /> Also known as “STOCK MARKET”.<br />
  14. 14.
  15. 15. EQUITY/share MARKET<br />STOCK <br /> 1)COMMON STOCKS<br /> 2)PREFERRED STOCKS<br />SHARE<br />MUTUAL FUNDS<br />FACE VALUE/MARKET VALUE/ISSUE VALUE<br />PROMOTERS<br />
  16. 16. Investment and speculation<br />Dealing in securities for purpose of getting a fair return on the investment <br />The purchase and sale of securities at the stock exchange is the speculation<br />
  17. 17. Types of speculation<br />Bull (Tejiwala)<br />Bear (Mandiwala)<br />Lame Duck (Langda)<br />Stag<br />
  18. 18. THE FUNCTION <br />Stock exchanges<br />Brokers<br />Registrars<br />Depositories and their participants <br />Securities and Exchange Board of India (SEBI)<br />
  19. 19. THE MARKET INDEX<br /><ul><li>Stock market indices are the barometer of the stock market.
  20. 20. BSE SENSEX,NSE-50 etc are some of the market indices.</li></ul>Their usefulness:<br /> Indices help to recognize broad trends in the market.<br /> The investor can use the indices to allocate the funds <br /> rationally among the stocks.<br /> Technical analysts use these indices to predict the future <br /> market. <br /> Indices function as a status report on the general <br /> economy.<br />
  21. 21. WHAT DOES THE INDICES DO?<br /> These indices have just one job: <br />
  22. 22. STOCK PRICES RISES,BUT WHY?<br />The price of every stock increases or decreases for the following possible reasons:<br /> News about company.<br /> News about the country.<br /> Exchange rate regime.<br /> Depends on demand <br /> and supply for that stock.<br />Bank Rate<br />Speculation Pressure<br />
  23. 23. WHO SELECTS THESE STOCKS<br />They are selected by the Index committee. <br /> Some of the criteria they follow include :<br />1)Market capitalization.<br />2)Liquidity.<br />3)Continuity.<br />4)Industry representation.<br />5)Listed history.<br />
  24. 24. THE SHOWCASE OF THE MARKET<br />THE NEWSPAPER<br />TELEVISION <br />INTERNET<br />PHONES<br />VERBALLY<br />
  25. 25. THE SHOWCASE<br />
  26. 26. WHY INVEST IN SHARES?<br />Why need I invest?<br />So what are the various investment options?<br />Why shares?<br />
  27. 27. HOW & WHERE TO BUY SHARES<br />
  28. 28. CALCULATIONS OF STOCK<br />
  29. 29. HOW TO MAKE MONEY <br />Patience, profound knowledge.<br />Best guess.<br />Diversification .<br />Portfolio <br /> management.<br />
  30. 30. SEBI-SECURITY EXCHANGE BOARD OF INDIA<br />Watches over the trade in India<br />Is the judiciary of stock market in India<br />Takes active part in making rules <br />
  31. 31. The market crisis<br />
  32. 32. ROLE IN ECONOMY<br />In theory they are required to facilitate, support, enable the healthy growth and functioning of primary markets<br />The current focus of thinking on the SENSEX, market capitalization etc.reflects an excessive preoccupation with the secondary market activity.<br />Beyond a point, the expansion of the secondary markets may reduce the volume of activity not only on the new issue market but also in the banks, other financial institutions, gold, real estate and commodities. <br />The multiple serious problems visiting the stock market caution us against too much optimism and enthusiasm about the stock market.<br />
  33. 33. INDIAN MARKET-DRAWBACKS<br />Unethical practices.<br />Big irrational greed, excessive speculation.<br />Lack of protection to interests of the genuine and small <br /> investors .<br />Trading is extremely thin and restricted.<br />Structural and organizational imbalance in the growth of the<br /> stock market.<br />Volatility of the market has increased over the years.<br />
  34. 34. NEW IDEAS<br /> Single authority<br /> Demutualization.<br /> Prescribing capital adequacy norms.<br /> Stricter registration of brokers<br /> Margin requirements<br />
  35. 35. queries<br />ASK US <br />?????????<br />
  36. 36. THANK YOU<br />

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