STOCK MARKET

GROUP MEMBERS

Name Roll no.Trupti Lad 9Pooja Sawant 10 Ankita Shirke 11Sayali Bane 12Savio Pereira 26Girish Tripathi 27Kavita Sangle 59 Guided by- Mr. Manoj

Bhatia

What is stock?

The original capital paid into or invested in the business by its founders.

Stock market:-The market in which shares are issued

and traded either through exchanges or over-the-counter markets

MARKET PARTICIPANTS:-

Individual investorInstitutional investor-1. Mutual funds2. Banks3. Insurance companies4. Hedge funds

IMPORTANCE OF STOCK MARKET

Important source for companies

to raise money.

It provides liquidity.

Primary indicator of country’s

economic strength &

development.

COMMON STOCK

A form of corporate equity

 ownership.

Carries the right to vote on

certain matters.

Uncertain return.

PREFERRED STOCK 

A hybrid instrument.

Carries no voting rights.

Rated by the major credit-rating

companies.

Priority in the payment of

dividend.

BOMBAY STOCK EXCHANGE

Location Dalal Street, Mumbai

Founded 1875

Owner BSE Limited

Currency Indian Rupee(Rs)

No. of listing 5133

Market Capital 1 trillion(US $)

Index BSE Sensex

Chairman Subramaniam Ramadorai

BSE

• One of the oldest stock exchange in Asia.

• Span of over 133 years• 3rd largest in South Asia & 10th largest in

the world.• Known before as “The Native Stock &

Share Brokers Association”. • Consist of 30 largest & most actively

traded companies.

Trading Schedule

Sessions Timings

Pre-open Trading Session 09:00 - 09:15

Trading Session 09:15 - 15:30

Position Transfer Session 15:30 - 15:50

Closing Session 15:50 - 16:05

Stock Exchange Worldwide

New York Stock Exchange- USAShanghai Stock Exchange- ChinaLondon Stock Exchange- United

KingdomNational Association of Security Dealers Automated Quotations- USA• Tokyo Stock Exchange- Japan

Credit Ratings

• Depend on the company image, management quality, auditors quality, accounting accuracy.

• Ratings are not fixed. AAA Highest Safety AA High Safety A Adequate Safety BBB Moderate Safety BB In Adequate Safety B, C & D High risk and default

Credit Rating Agency's

1. CRISIL2. ICRA3. CARE4. SMERA

SENSEX

Companies part of BSE SENSEX for the purpose of index calculation:

COMPANY NAME INDUSTRY1. ACC CEMENT- MAJOR

2. BHARTI AIRTEL TELECOMMUNICATION-SERVICE

3. BHEL ENGINEERING-HEAVY

4. DLF CONSTRUCTION & CONTRACTING

5. GRASIM DIVERSIFIED

6. HDFC FINANCE-HOUSING

7. HDFC BANK BANKS-PVT SECTOR

8. HERO HONDA AUTO

9. HINDALCO ALUMINIUM

10. HUL PERSONAL CARE

11. ICICI BANK BANKS PVT SECTOR

12. INFOSYS COMPUTER -SOFTWARE

13. ITC CIGARETTES

14. JAYPARAKASH ASS CONSTRUCTION & CONTRACTING

15. LARSEN & TUBRO {L ENGINEERING-HEAVY

16. MAHINDRA & MAHIND AUTO

17. MARUTI SUZUKI AUTO

18. NTPC POWER-GENERATION/DISTRIBUTION

19. ONGC OIL DRILLING & EXPLORATION

20. RELIANCE REFINERIES

21. RELIANCE COM. TELECOMMUNICATIONS-SERVICE

22. RELIANCE INFRA. POWER-GENERATION/DISTRIBUTION

23. SBI BANKS- PUBLIC SECTOR

24. STERLITE IND. METALS-NON FERROUS

25. SUN PHARMA PHARMACEUTICALS

26. TATA MOTORS AUTO-LCVs/HCVs

27. TATA POWER POWER-GENERATION/DISTRIBUTION

28. TATA STEEL STEEL-LARGE

29. TCS COMPUTERS-SOFTWARE

30. WIPRO COMPUTERS-SOFTWARE

What do you mean by “free-float market capitalization”?

Method to calculate INDEX

Variation of market capitalization

method

FFMC= Market Capitalization ×

Free float factor

How do you find out the value of the SENSEX at a particular point?

STEP 1: Find out the FREE FLOAT MARKET

CAPITALISATION of 30 companies.

STEP 2: Add all the FREE FLOAT

MARKET CAPITALISATION of 30

companies.

STEP 3: Make all this relative to

SENSEX base.

MAJOR CRASHES SINCE 2000

May 2006

Effects of the subprime crisis in the U.S.

Participatory notes issue.

NATIONAL STOCK EXCHANGE

Location of National Stock Exchange

Type Stock Exchange

Location Mumbai, India

Co-ordinates 19⁰3’37”N 72⁰51’35”E

Founded 1992

Owner National Stock Exchange India limited

Key people Ravi Narain (MD)

Currency Indian Rupee

No. of listing 1,646

Market Capital US$985billion(dec 2011)

Indexes S&P CNX Nifty, CNX Nifty Junior, S&P CNX 500

MARKETSCurrently, NSE has the following major segment of capital

market:EQUITIES Equities Indices Mutual Funds Exchange Traded funds Initial Public Offering Security Lending and Borrowing SchemesDERIVATIVES Equity Derivatives Currency Derivatives Interest Rate Futures DEBT Retail Debt Market Wholesale Debt Market Corporate Bonds

TRADING SCHEDULE

Trading takes place on all days of the week except Saturday and Sunday.

•Session Open Close

•Pre-open session(regular) 09:00 hrs 09:08 hrs

•Pre-open session for IPO & Relist Securities

09:00 hrs 09:45 hrs

•Regular Trading Session 09:15 hrs 15:30 hrs

•Block Deal Session 09:15 hrs 09:50 hrs

•Closing Session 15:40 hrs 16:00 hrs

MILESTONEOctober 1995:- Became largest stock exchange in the

country.April 1996 :- Launch of S&P CNX NiftyMay 1998:- Launch of NSE’s Web-site: www.nse.co.in July 1998:- Launch of NSE’s Certification Program in

Financial MarketFebruary 2000:- Commencement of Internet TradingMay 2002:- wins Wharton –Infosys Business

Transformation Award. January 2007:-Lunch of NSE-CNBC TV 18media centreOctober 2010:-Launch of 15-minutes special pre-open

session

IISL

NSE also set up a index services firm known as India Index Services & Products Limited(IISL).

Joint venture between NSE and CRISIL Ltd.

Established in may 1998.To provide Indices and index

related services and products.

CERTIFICATION

NSE also conduct online examination & award certification under it’s program NCFM .

Certifications available in 32 modules, covering different factor of financial & capital market

NSE has been offering short-term course called NSE Certified Capital Market professional since August 2009.

DEMAT ACCOUNT

WHAT IS DEMAT ACCOUNT?

An dematerialisation of shares.In Demat account shares &

securities are held electronically.A process where physical records

of investments are converted into electronic records.

WHAT IS DEPOSITORY & DEPOSITORY PARTICIPANT ?

A place where stocks of investors are held in electronic form.

Two main depository in India are: 1. National securities depository limited

(NSDL)2. Central depository services limited

(CDSL) DP is an institution holding a pool of

preverified shares in electronic mode. DP is an Intermediary between

investors & depository.

PROCEDURE OF OPENING A DEMAT ACCOUNT:-

Investor approach a DP & fill up the demat request form (DRF)

Investors has to submit the proof of identity & address.

Documents needs to be verified by authorized officer of DP under his signature.

Further investor has to sign a agreement. DP must provide the investors with copy of

agreement & schedule of charges. DP will open the account & gives an account

number called as Beneficial owner identification number (BOID)

DEMAT

ADVANTAGES DISADVANTAGES

Easy & Convenient. Immediate transfer of

shares. No stamp duty

payable. Reduces paper work. Safer than paper

shares Nomination facility is

available.

Trading in securities may become uncontrolled.

Difficult for capital market regulator to keep a close watch.

Role of key market players must be supervised.

WHAT IS TRADING?

Buying and selling of securities or commodities on a short term basis, hoping to make quick profits.

Types of trading

Day trading

Short term trading

Medium term trading

Long term trading

Methods of trading

1. On the exchange floor

2. Electronically

WHAT IS IPO?

IPO stands for Initial Public Offering. It is when a company offers its shares for sale to investors, usually with the aim of getting a wide spread of shareholders so it can list on a stock exchange for the first time.

HOW TO APPLY FOR IPO FORM?

To fill an application form. These forms are available in stalls outside the

stock market, share broker etc. A good idea is to check the web site

of karvy consultants[www.karvy.com] The option is to check the sebi website[wwwsebi.gov.in]

for the prospectus of a particular ipo. Remit the amount after calculating the number of

shares applied for in the bank that is designated in the form as collecting centre for that ipo.

If you have demat a/c you can apply directly.

FACTORS BEFORE APPLYING TO AN IPO

TRACK RECORD OF THE PROMOTORS

FINANCIALSPROSPECTUSISSUE PRICE

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