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STOCK MARKET
 A STOCK is a share in the ownership of a company. A stock represents a claim on
the companys assets and earnings. As you acquire more stocks, your ownership
stake in the company becomes greater.
 A share market or Stock market, is a private or public market for the trading of
company stock and derivatives of company stock price;
 The stocks are listed and traded on the 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.
 Stock market is known as the cradle of capitalism. It is a place where companies
come to raise their share capital and investors go to invest their surplus funds.
SHARE IN THE SHARE MARKET ARE EITHER
TRADED THROUGH:-
1)Stock Exchange
2)Over-the-Counter
1)Stock Exchange:-
 These are organized market places where stocks, bonds are
other equivalents are traded between the buyers and sellers
where exchange acts as a counter-party to both participants in
case of any default. The contracts are standardized and not
customized ones. For example, NYSE,NASDAQ, NSE, NIKKEI,
etc.
2)Over-The-Counter
 These are not centralized exchanges. Here, the trade takes
place through a network of dealers. Generally, the OTC contracts are
bilateral customized contracts and not standardized.
SHARE TRADING 3 WAYS
Share
Trading
Offline share
trading
Online share
trading
Open Qutery
trading
SEBI(Securities And Exchange Board of India)
1. Introduction:-
 SEBI is the Regulator for the Securities Market in India.
Originally set up by the Government of the India in 1988, it
acquired statutory from in 1992 with SEBI Act 1992 being
passed by the Indian Parliament. Chaired by C B Bhave.
1. Function of SEBI:-
I. The issuers of securities
II. The Investors
III. The market intermediaries
INDIAN STOCK EXCHANGES
1) BSE (Bombay Stock Exchange):-
 Location: Mumbai
 Index: Sensex (SENSitve indEX)
 Consist of group of 30 Stock
 Members: 852
 Date of Launch: 03 January 1986
 Base period:1978-79
 Base Index Value:100
 Timing: 09.30 AM  03.30 PM
 Listed Co. : over 6000
SENSEX ARCHIVES (1991  2009)
2)NSE(National Stock Exchanges)
 Location: Mumbai
 Index: Nifty (National Stock Exchange Fifty)
 Consist of group of 50 Stocks
 Date of Launch: April 1994
 Base period: 1993-94
 Base index value: 1000
 Members 726
Type Of The Market
Stock Market
Normal
Market
Auction
Market
Odd Lot
Market
Spot Market
BIG STOCK MARKET
 NYSE ( New York Stock Exchange)
 NASDAQ-America
 Dow Jones
 S&P 500
 Tokyo Stock Exchange
 London Stock Exchange
 Bombay Stock Exchange, India
 National Stock Exchange, India
Stock market
IMPORTANT TERMS IN STOCK
MARKET AND IN STOCK TRADING
Open- The stock price in beginning of Day(i.e. in morning).
High - The stock price reached at the highest level in a day.
Low - The stock price reached the lowest level in a day.
Close - The stock price at which it remains after the end of market timings
or the final price of the stock when the market closes for a day.
Volume - Volume is nothing but quantity.
Bid - The Buying price is called as Bid price.
Offer - The selling price is called offer price.
STOCK MARKET
CONDITIONS
There are two ways to describe the general conditions of
the stock market:
1)BULL MARKET
2)BEAR MARKET
Bull Market -
A Bull Market indicates the constant upward movement of
the stock market. A particular stock that seems to be
increasing in value is described to be bullish.
A BEAR MARKET INDICATES THE CONTINUOUS DOWNWARD
MOVEMENT OF THE STOCK MARKET. STOCK THAT SEEMS TO BE
DECREASING IN VALUE IS DESCRIBED TO BE BEARISH.
STOCK MARKET
CONDITIONS
BEAR MARKET:-
IMPORTANT INDICES IN THE WORLD
Name of Index Country Weight No. Pf
Stock
Base
Year
Base
Value
S & P CNX
Nifty
NSEIL,
India
Market Capitalization 50 1995 1000
SENSEX 30 BSE, India Market Capitalization 30 1978-79 100
NASDAQ 100 NASDAQ ,
USA
Market Capitalization 100 1985 125
FTSE 100 UK Market Capitalization 100 1984 1000
Hang Seng Hong Kong Market Capitalization 33 1964 100
Dow Jones USA Price 30 1928
Nikkei 225 Tokyo Price 225 1949
BENEFITS OF INVESTING IN
SHARES
 Possibility of increase in value
of share
 Income from dividends
 Easy liquidity
 Tax benefits on income
earned such as exemptions
U/s 10(34) for dividends, Sec
54 for calculating STCG &
LTCG
1.DEMAND AND SUPPLY
2.BANK RATE
3.SPECULATIVE PRESSURE
4. ACTIONS OF UNDERWRITERS AND OTHER
FINANCIAL INSTITUTIONS
5.CHANGE IN COMPANYS BOARD OF DIRECTORS
CAUSES OF PRICE FLUCTUATION
6. FINANCIAL POSITION OF THE COMPANY
7.TRADE CYCLE
8.POLITICAL FACTORS
9.SYMPATHETIC FLUCTUATIONS
10. OTHER FACTORS:
A. EXPECTED MONSOON
B. PERSONAL HEALTH OF HEAD OF
GOVERNMENT OR CHAIRMAN OF THE
COMPANY
C. OIL PRICES IN THE INTERNATIONAL
MARKET
CONT
Stock market

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Stock market

  • 1. STOCK MARKET A STOCK is a share in the ownership of a company. A stock represents a claim on the companys assets and earnings. As you acquire more stocks, your ownership stake in the company becomes greater. A share market or Stock market, is a private or public market for the trading of company stock and derivatives of company stock price; The stocks are listed and traded on the 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. Stock market is known as the cradle of capitalism. It is a place where companies come to raise their share capital and investors go to invest their surplus funds.
  • 2. SHARE IN THE SHARE MARKET ARE EITHER TRADED THROUGH:- 1)Stock Exchange 2)Over-the-Counter 1)Stock Exchange:- These are organized market places where stocks, bonds are other equivalents are traded between the buyers and sellers where exchange acts as a counter-party to both participants in case of any default. The contracts are standardized and not customized ones. For example, NYSE,NASDAQ, NSE, NIKKEI, etc. 2)Over-The-Counter These are not centralized exchanges. Here, the trade takes place through a network of dealers. Generally, the OTC contracts are bilateral customized contracts and not standardized.
  • 3. SHARE TRADING 3 WAYS Share Trading Offline share trading Online share trading Open Qutery trading
  • 4. SEBI(Securities And Exchange Board of India) 1. Introduction:- SEBI is the Regulator for the Securities Market in India. Originally set up by the Government of the India in 1988, it acquired statutory from in 1992 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B Bhave. 1. Function of SEBI:- I. The issuers of securities II. The Investors III. The market intermediaries
  • 5. INDIAN STOCK EXCHANGES 1) BSE (Bombay Stock Exchange):- Location: Mumbai Index: Sensex (SENSitve indEX) Consist of group of 30 Stock Members: 852 Date of Launch: 03 January 1986 Base period:1978-79 Base Index Value:100 Timing: 09.30 AM 03.30 PM Listed Co. : over 6000
  • 7. 2)NSE(National Stock Exchanges) Location: Mumbai Index: Nifty (National Stock Exchange Fifty) Consist of group of 50 Stocks Date of Launch: April 1994 Base period: 1993-94 Base index value: 1000 Members 726
  • 8. Type Of The Market Stock Market Normal Market Auction Market Odd Lot Market Spot Market
  • 9. BIG STOCK MARKET NYSE ( New York Stock Exchange) NASDAQ-America Dow Jones S&P 500 Tokyo Stock Exchange London Stock Exchange Bombay Stock Exchange, India National Stock Exchange, India
  • 11. IMPORTANT TERMS IN STOCK MARKET AND IN STOCK TRADING Open- The stock price in beginning of Day(i.e. in morning). High - The stock price reached at the highest level in a day. Low - The stock price reached the lowest level in a day. Close - The stock price at which it remains after the end of market timings or the final price of the stock when the market closes for a day. Volume - Volume is nothing but quantity. Bid - The Buying price is called as Bid price. Offer - The selling price is called offer price.
  • 12. STOCK MARKET CONDITIONS There are two ways to describe the general conditions of the stock market: 1)BULL MARKET 2)BEAR MARKET Bull Market - A Bull Market indicates the constant upward movement of the stock market. A particular stock that seems to be increasing in value is described to be bullish.
  • 13. A BEAR MARKET INDICATES THE CONTINUOUS DOWNWARD MOVEMENT OF THE STOCK MARKET. STOCK THAT SEEMS TO BE DECREASING IN VALUE IS DESCRIBED TO BE BEARISH. STOCK MARKET CONDITIONS BEAR MARKET:-
  • 14. IMPORTANT INDICES IN THE WORLD Name of Index Country Weight No. Pf Stock Base Year Base Value S & P CNX Nifty NSEIL, India Market Capitalization 50 1995 1000 SENSEX 30 BSE, India Market Capitalization 30 1978-79 100 NASDAQ 100 NASDAQ , USA Market Capitalization 100 1985 125 FTSE 100 UK Market Capitalization 100 1984 1000 Hang Seng Hong Kong Market Capitalization 33 1964 100 Dow Jones USA Price 30 1928 Nikkei 225 Tokyo Price 225 1949
  • 15. BENEFITS OF INVESTING IN SHARES Possibility of increase in value of share Income from dividends Easy liquidity Tax benefits on income earned such as exemptions U/s 10(34) for dividends, Sec 54 for calculating STCG & LTCG
  • 16. 1.DEMAND AND SUPPLY 2.BANK RATE 3.SPECULATIVE PRESSURE 4. ACTIONS OF UNDERWRITERS AND OTHER FINANCIAL INSTITUTIONS 5.CHANGE IN COMPANYS BOARD OF DIRECTORS CAUSES OF PRICE FLUCTUATION
  • 17. 6. FINANCIAL POSITION OF THE COMPANY 7.TRADE CYCLE 8.POLITICAL FACTORS 9.SYMPATHETIC FLUCTUATIONS 10. OTHER FACTORS: A. EXPECTED MONSOON B. PERSONAL HEALTH OF HEAD OF GOVERNMENT OR CHAIRMAN OF THE COMPANY C. OIL PRICES IN THE INTERNATIONAL MARKET CONT