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SHARE MARKET

“In simple Words, a “share or stock” is a


document issued by a company, which
entitles its holder to be one of the owners
of the company. A share is issued by a
company or can be purchased from the
stock market”.
What Are Active
Shares ?
Shares in which there are frequent and day-to-
day dealings, as distinguished from partly
active shares in which dealings are not so
frequent. Most shares of leading
companies would be active, particularly
those which are sensitive to economic and
political events and are, therefore, subject to
sudden price movements. Some market
analysts would define “active shares as those
which are bought and sold at least three
times a week”. Easy to buy or sell.
Quick Facts on Stocks
and Shares
Owning a stock or a share means you are a
partial owner of the company, and you get
voting rights in certain company issues
Over the long run, stocks have historically
averaged about 10% annual returns However,
stocks offer no
guarantee of any returns and can lose value,
even in the long run
Investments in stocks can generate returns
through dividends.

How does one trade in
shares ?
Every transaction in the stock exchange is carried
out through licensed members called
“BROKERS”.

To trade in shares, you have to approach a broker
However, since most stock exchange brokers
deal in very high volumes, they generally do not
entertain small investors. These “brokers have
a network of sub-brokers” who provide them
with orders.

The general investors should identify a sub-broker
for regular trading in shares and place his order
for purchase and sale through the sub-broker. The
sub/broker will transmit the order to his broker
who will then execute it .
Stock market

“A stock market, or equity market, is a private or


public market for the trading of company stock
and derivatives at an agreed price; these are
securities listed on a stock exchange as well as
those only traded privately.”
STOCK
EXCHNGES
NEW YORK
LONDON
B S E INDIA N S E
Bombay stock
exchange
Bombay Stock Exchange is the oldest stock exchange in Asia .
BSE was established as "The Native Share & Stock Brokers'
Association" in 1875.

BSE is the first exchange in India and the second in the world to
obtain an ISO 9001:2000 certification.

BSE is the first stock exchange in the country which obtained


permanent recognition (in 1956) from the Government of India
under the Securities Contracts (Regulation) Act 1956.

BSE has two of world's best exchanges, Deutsche Bores and


Singapore Exchange, as its strategic partners.
To d a y , B S E is th e w o rld 's n u m b e r 1 exch a n g e in te rm s
o f th e n u m b e r o f liste d co m p a n ie s a n d th e w o rld 's 5 th
in tra n sa ctio n n u m b e rs. T h e m a rke t ca p ita liza tio n a s
o n D e ce m b e r 3 1 , 2 0 0 7 sto o d a t U S D 1 . 7 9 trillio n .
A n in ve sto r ca n ch o o se fro m m o re th a n 4 , 7 0 0 liste d
co m p a n ie s, w h ich fo r e a sy re fe re n ce , a re cla ssifie d in to
A , B , S , T a n d Z g ro u p s

B S E h a s tie d u p w ith U . S . Fu tu re s E xch a n g e ( U S FE ) fo r


U . S . d o lla r-d e n o m in a te d fu tu re s tra d in g o f S E N S E X in
th e U . S . T h e tie -u p e n a b le s e lig ib le U . S . in ve sto rs to
d ire ctly p a rticip a te in In d ia 's e q u ity m a rke ts fo r th e
first tim e , w ith o u t re q u irin g A m e rica n D e p o sito ry
R e ce ip t .
BSE company list  ABG INFRALOG
 ABAN OFFSHO
 ABG SHIPYARD
 ABB LTD
 ABHI CORP LT
 ACC LTD
 ABHINAV CAP
 ADANI ENTER
 ABIRAMI FIN.
 ADI BIR NUVO
 ABM KNOWLEDG
 AKRUTI CITY
 ACCEL FRONTL
 ALLAHABAD BK
 ACCEL TRANS
 ALSTOM PROJE
 ACCURA EXPOR
 AMBUJA CEME
 ACCURATE TR
 ANDHRA BANK
 ACE INDIA LT
 APOLLO HOS E
 ACE SOFT EXP
 AREVA
 D-LINK INDIA
 ASHOK LEYLND
 DAAWAT
 ASIAN PAINTS
 DAIKAF CHEMI
 AXIS BANK
 DALAL ST INV
 A K CAPITAL
 DALMI INDUST
 A V COTTEX I
 DALMIA CEM B
 AAREY DRUGS
 DARSHAN OILS
 AARTI DRUGS
 DATA INF TEL
 AARTI INDUS
 DATA SOF AP S
 AARVEE DEN E
 DATABASE FIN
 ABBOTT INDIA
 DATAM TECH
 ABC PAPER) STBR

 DATANET SYST
 DAULDAWOO MOT I
   
National Stock
Exchange Of India
The National Stock Exchange of India Limited or S&P CNX
NIFTY (NSE), is a Mumbai-based stock exchange. It is the
largest stock exchange in India in of daily turnover and
number of trades, for both equities and derivative trading.
Mutually-owned by a set of leading financial institutions,
banks, insurance companies and other financial
intermediaries in India.

NSE is the third largest Stock Exchange in the world in


terms of the number of trades in equities and second
fastest growing stock exchange in the world with a
recorded growth of 16.6%.[6]

NSE of India was promoted by leading Financial institutions


at the behest of the Government of India.
MARKETS

Currently, NSE has the following major segments


of the capital market:


Equity
Futures and Options
Retail Debt Market
Wholesale Debt Market
Currency futures


N S E company list
 Pharmacia Healthcare Limited  DIC India Limited
 Ador Welding Ltd  Digital GlobalSoft Ltd.
 Aegis Logistics Ltd.  Origin Agrostar Ltd.
 Bayer Cropscience India Limited  Emco Ltd.
 Agro Dutch Industries Ltd  Essel Propack Ltd.
 Alstom Projects India Ltd  Fag Bearings India Ltd.
 Hitachi Home and Life Solutions (India) Ltd  FCI OEN Connectors Ltd
 The Andhra Pradesh Paper Mills Ltd.  Zensar Technologies Ltd
 Shiva Texyarn Ltd.
 GAIL (India) Ltd
 Aptech Limited
 Baba ArtsAlstom Ltd
 Archies Limited
 Williamson Tea Assam Ltd.
 Asahi India Glass Limited
 Mahindra Gesco Developers Limited
 ABB Ltd.
 GlaxoSmithKline Pharmaceuticals Ltd.
 Ashima Limited
 AstraZeneca Pharma India Ltd
 GTL Ltd.
 Atcom Technologies Ltd.  Greaves Cotton Limited
 Atlas Cycles (Haryana) Ltd  GHCL LimitedSchenectady Herdillia Limited
 Balurghat Technologies Ltd  Hinduja TMT Ltd
 Rayban Sun Optics Ltd.  Micro Inks Ltd.
 3M India LimitedB S Refrigerators Ltd  Aventis Pharma Ltd
 BSEL Infrastructure Realty Limited  Tata Teleservices (Maharashtra) Ltd.
 Reliance Energy Limited  IL&FS Investment Managers Limited
 Graphite India Limited  Gillette India Ltd
 CFL Capital Financial Services Ltd  Industrial Development Bank of India Limited
 Cinevistaas Limited  ICES Software Ltd.


Securities And Exchange
Board Of India. {SEBI}
 ESTABLISHMENT OF SEBI
 The Securities and Exchange Board of India was established
on April 12, 1992 in accordance with the provisions of the
Securities and Exchange Board of India Act, 1992.

 PREAMBLE
 The Preamble of the Securities and Exchange Board of India
describes the basic functions of the Securities and
Exchange Board of India as

 “…..to protect the interests of investors in securities and to
promote the development of, and to regulate the securities
market and for matters connected therewith or incidental
thereto”

Fu n ctio n s a n d R e sp o n sib ilitie s
S E B I h a s to b e re sp o n sive to th e n e e d s o f th re e g ro u p s, w h ich
co n stitu te th e m a rke t:
th e issu e rs o f se cu ritie s
th e in ve sto rs
th e m a rke t in te rm e d ia rie s.

S E B I h a s th re e fu n ctio n s ro lle d in to o n e b o d y q u a si-le g isla tive ,


q u a si-ju d icia la n d q u a si-exe cu tive . It d ra fts re g u la tio n s in its
le g isla tive ca p a city , it co n d u cts in ve stig a tio n a n d e n fo rce m e n t
a ctio n in its exe cu tive fu n ctio n a n d it p a sse s ru lin g s a n d o rd e rs in
its ju d icia lca p a city. T h o u g h th is m a ke s it ve ry p o w e rfu l, th e re is
a n a p p e a ls p ro ce ss to cre a te a cco u n ta b ility. T h e re is a S e cu ritie s
A p p e lla te Trib u n a lw h ich is a th re e m e m b e r trib u n a la n d is

p re se n tly h e a d e d b y a fo rm e r C h ie f Ju stice o f a H ig h co u rt - M r.
Ju stice N K S o d h i. A se co n d a p p e a llie s d ire ctly to th e S u p re m e
C o u rt.
S E B I h a s e n jo ye d su cce ss a s a re g u la to r b y p u sh in g syste m ic
re fo rm s a g g re ssive ly a n d su cce ssive ly ( e . g . th e q u ick m o ve m e n t
to w a rd s m a kin g th e m a rke ts e le ctro n ic a n d p a p e rle ss ro llin g
Effect of fluctuation on Indian
Indian stock market was booming with the huge inflow
of money from FIIs. However, suddenly it crashed and
lost more than 2000 points in the next few days. In the
festive season on Navratra, the pall of gloom
engulfedthe market and the mood of investors turned
from jubilant a sober.

Nothing actually. The economy is as sound as it


was in the boom time. The companies are as
profitable as they were a few days ago. Yet, the
market crashed because the Government tried to
instill some sort of regulation in it
Though , this concept of allowing anonymous investors in
the market broaden the reach of the market , it also
ensure free entry of dollars into Indian economy as well
as increase the percentage of hot money in the market .
The hot money is that kind of money which is invested
only for a short time to make some quick buck . It is not
invested with a long term mindset . Since the continuous
inflow of dollar into Indian economy is making the Indian
currency ( Rupee ) stronger and thus making the export
costlier , the Government was looking for someway to curb
this inflow of dollars . Making the availability of
Participatory Notes some difficult for foreign investors
was one step Government thought would help control the
inflow of dollars . So a few days ago the SEBI
contemplated on a draft policy to make the issuing of PN
difficult for FIIs . This was the step which gave a jolt
to the buying spree of FIIs . As people found that it
would be difficult to trade in the market in future owing
to non - availability of PN , they started exiting form the
market by selling their stock .
STOCK MARKET
INDEX

A stock market index is a method of


measuring a section of the stock market.

The "index" is a numerical value, calculated


most often as the arithmetical sum of a pre-
defined set of stocks that meet certain
criteria. That is why, when the "index" goes
up or down it reflects an increase or a
decrease, respectivelly, in the total value of
those stocks.
Indexes vs . Indices

According to the Journal of Financial


Economics: 'Indices' as the plural of 'index' is
appropriate for mathematical terms, but the
plural of 'stock index' is 'stock indexes’.
Types of indices .

Stock market indices may be classed in many ways.


A broad-base index represents the performance of a
whole stock market — and by proxy, reflects
investor sentiment on the state of the economy. The
most regularly quoted market indices are broad-base
indices comprised of the stocks of large companies
listed on a nation's largest stock exchanges.
Index versions
Some indexes have multiple versions. For example, the
S&P 500 index has 3 versions: price, total return, and net
total return.
The Wilshire 4500 and Wilshire 5000 indices have five
versions each: full capitalization total return, full
capitalization price, float-adjusted total return, float-
adjusted price, and equal weight.