STOCK EXCHANGE

• PRESENTED BY:

NAVNEET KUMAR
MBA- 098610
 INTRODUCTION
• A stock exchange is a corporation or mutual
organisation which provides “trading” facilities
for stock brokers and traders, to trade stock and
other securities.
stock exchange also provides facilities
for the issue and redemption of securities as well
as other financial instruments and capital events
including the payment of incomes and dividends.
a stock exchange is often the most
important components of stock market.
 SECURITIES

• Security is a fungiable and negotiable

instruments representing financial value.
the securities traded on stock
exchange includes, shares issued by
companies and bonds and also mutual
funds.
 THE ROLE OF STOCK
EXCHANGES
• Raising capital for business.
• Mobilizing savings for investment.
• Facilitating companies growth.
• Profit sharing.
• Creating investment opportunities for small
investors.
• Government capital- raising for development
projects.
• Barometer of the economy.
MAJOR STOCK EXCHANGES
IN THE WORLD

• There are so many stock exchanges

in the world, but the most important
stock exchanges in the world are as:
 LONDON STOCK
EXCHANGE

• It is situated in Europe.
• Its market value is m$ 2560491.1.
• Its total share turnover is m$
2321518.5.
 SAO PAULO STOCK
EXCHANGE

• It is situated in USA.
• Its market value is m$ 1032518.4.
• Its total share turnover is m$
36195.0.
 NEW YORK STOCK
EXCHANGE

• It is situated in USA.
• Its market value is m$ 10842001.9.
• Its total share turnover is
m$12158620.
 TOKYO STOCK
EXCHANGE

• It is situated in Japan.
• Its market value is m$ 3478602.5.
• Its total share turnover is m$
2675983.3.
AUSTRALIAN STOCK
EXCHANGE

• It is situated in Australia.
• Its market value is m$ 1066513.2.
• Its total share turnover is m$
560912.8.
 HONGKONG STOCK
EXCHANGE

• It is situated in Singapore.
• Its market value is m$ 1945517.7.
• Its total share turnover is m$
970227.6.
 BOMBAY STOCK
EXCHANGE

• It is situated in India.
• Its market value is m$
1082572.0.
• Its total share turnover is m$
171176.2.
 SANGHAI STOCK
EXCHANGE

• It is situated in China.
• Its market value is m$
2142756.8.
• Its total share turnover is m$
3315768.3.
 LISTING REQUIREMENTS

• It is a set of conditions imposed by a given

stock exchange upon companies that want to
be listed. Such conditions sometimes
includes minimum number of shares
outstanding, minimum market capitalization,
and minimum annual income.
Requirements varies by stock
exchange.
 STOCK EXCHANGES IN
INDIA
• There are 23 stock exchanges in India.
1. Bombay stock exchange.
2. National stock exchange.
3. Ahmedabad stock exchange.
4. Banglore stock exchange.
5. Bhubaneshwar stock exchange.
6. Calcutta stock exchange.
7. Cochin stock exchange.
8. Coimbatore stock exchange.
9. Delhi stock exchange.
10. Guwahati stock exchange.
11. Hyderabad stock exchange.
Jaipur stock exchange.
Ludhiana stock exchange.
Madhya pradesh stock exchange.
Madras stock exchange.
Magadh stock exchange.
Manglore stock exchange.
Meerut stock exchange,
OTC exchange of India.
Pune stock exchange.
Saurashtra kutch stock exchange.
Uttar pradesh stock exchange.
Vadodara stock exchange.
• Out of 23 stock exchanges in
India Bombay stock
exchange and National stock
exchange are the most
important one. Because
most of the top companies
are listed in BSE and NSE.
 BOMBAY STOCK
EXCHANGE
• Location- Mumbai, India.
• Founded- 1875.
• Owner- Bombay stock exchange Ltd.
• CEO- Madhu kannan.
• Number of listing companies- 4700.
• Market capital- US $ 1.1 trillion(aug 2009)
• Indexes- BSE Sensex.
 FEATURES OF BSE
• It is the oldest stock exchange in Asia and has
the greatest number of listed companies in the
world with 4700 listed as of august- 2007.
• It is located at Dalal street, Mumbai, India.
• On Dec-31 2007, the equity market
capitalization of the companies listed on the
BSE was US $1.79 trillion making the largest
stock exchanges in south Asia and 12 largest in
the world.
• The BSE Sensex, also called “BSE 30” is
widely used marketing index in India and Asia.
• BSE is the first stock exchange in the country which
obtained permanent recognition( in 1956) from the
Govt. of India under the securities contract act 1956.
• BSE provides an efficient and transparent market for
trading in equity, debt instruments and derivatives.
• BSE has always been at par with the internationals
standards.
• The system and processes are designed to safeguard
market integrity and enhance transparency in
operations.
• BSE is the first exchange in India and second in the
World to obtain an ISO 9001-2000 certification.
• BSE has become the first national level stock
exchange to launch its website in Gujrati and Hindi to
reach out to a larger number of investors.
 HOURS OF OPERATION
• Beginning of the day session- 8:00-9:00.
• Login session- 9:00-9:30.
• Trading session- 9:55-15:30.
• Position transfer session- 15:30-15:50
• Closing session- 15:50-16:05
• Option exercise session- 16:05-16:35
• Margin session- 16:35-16:50
• Query session- 16:50-17:35
• End of day session- 17:35.
BSE normal trading sessions are on all days
of the weeks except Saturday and Sunday and also
on holidays declared by the exchange in advance.
 BSE also has a wide range of
services to empower investors and
facilitate smooth transactions
• INVESTORS SERVICES:
BSE was the first exchange in the
country to provide an amount of Rs. 1 million
towards the investors protection fund. It is the
amount higher than that of any exchange in
the country. BSE has launched a nation wide
investers awareness program “ safe investing
in the stock market” under which 264 programs
were held in more than 200 cities.
• BSE ON-LINE TADING:
It facilitates on-line screen based trading in
securities. BOLT is currently operating 25000 trader
work stations located across over 359 cities in India.
• BSE WEBX.com:
in Feb-2001, BSE introduced the world’s first
centralized exchange based internet trading system
BSE WEBX.com. This initiative enables investors
anywhere in the world to trade on the BSE platform.
• BSE TRAINING INSTITUTE:
BTI imparts capital market training and
certification, in collaboration with reputed
management institutes and universities. It offers over
40 courses on various aspects of capital market and
financial sectors.
 MAJOR FLUCTUATIONS IN
SENSEX
• 13000, OCT-30,2006: Crossed the magical figure of
13000.
• 14000, Dec-5, 2006: Crossed the 14000 mark to touch
14038 point.
• 15000, july-6,2007: crossed the magical figure of
15000.
• 16000, sep-2007: yet achieved another milestone and
crossed 16000 points within minutes after trading
began.
• 17000, sep-26,2007: yet achieved another height
during early morning trade and crossed 17000 points.
• 18000, oct-9,2007: crossed 18000 points and its only
taken 8 days to cross.
• 19000,Oct-15,2007;cross the 19000 mark and
gained the last thousand points in just four
trading days.
• 20000,Oct-29,2007;crossed 20000 mark and
gained thousand point in only ten trading days.
• 21000,Jan-8,2008;it crossed 21000 mark in
intra-day trading after 19 trading session.
• 15200,Jun-13,2008;the sensex closed below
15200 mark. Indian market suffer with major
downfall from january 21,2008.
• 14220,Jun-25,2008;
• 12822,July-2,2008;the sensex hit on intra-day
low of 12,822.
• 11801,Oct-6,2008.
• 10527,Oct-10,2008.
• 14284,May-18,2009;after the result of
15th Indian general election sensex
gained 2100.79 points from the
previous close of 12173,these creates
a new history in indian market in the
opening trade itself Sensex gained
15% from the previous day close.
 NATIONAL STOCK
EXCHANGE

• LOCATION - Mumbai,India.
• LISTED COMPANIES – 1016
• TRADING MEMBERS – 726
• OWNER – Owned by the group of
leading financial institutions.
• INDEXES - NIFTY
 FEATURES OF NSE
• NSE is owned by the group of leading
financial institutions such as Indian Bank
or Life Insurance Corporation of India.
• NSE in the totality de-mutualised
exchange, the ownership as well as the
management does not have right to trade
on exchange. Only qualified traders can
be involved in the securities trading.
• NSE is one of the few exchanges in the
world trading all types of securities on the
single platform.
• NSE of India Ltd. Provides its clients with
a single,fully electronic trading platform
that is operated through a V-SAT network.
• NSE uses the satellite communication
system that connects traders from 345
Indian cities.
• The advance technologies enable up to 6
million traders to be operated daily on the
NSE trading platform.
MAJOR COMPANIES UNDER
NSE
• Bharat Forge
• Maruti Suzuki
• Mercator Lines
• On Mobile
• Oriental Bank of Commerce
• R System
• Salora International
• Strides Arcolab
 SENSEX
• The sensex is an index.
• The Sensex is an indicator of all the major
companies of the BSE.
• If the sensex goes up,it means that the
prices of the stocks of most of the major
companies on BSE have gone up.
• If the sensex goes down this tells you that
the stock price of most of the major stocks
on the BSE have gone down.
SENSEX
 NIFTY
• NIFTY is a composite of the top 50 stocks listed
on the NSE, representing 24 different sectors of
the company.
• It is a simplified tool that helps investors and
ordinary people alike, to understand what is
happening in the stock market and by extension,
the company.
• If the NIFTY index performs well, it is signal that
companies in India are performing well and
consequently that the country is doing well.
• NIFTY is the flagship index of NSE, the third
largest stock exchange in the world in terms of
member of transaction.
CRITERIA FOR INCLUSION
OF STOCK IN NIFTY

• Average market capitalisation of

Rs 5000 million or more during
the last six months.
NIFTY
BULL MARKET