share market
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Stock Exchange
• A stock market or equity market is a public entity (a loose network of economic transactions, not a physical facility or discrete entity) for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.
History• 1875 - BSE is Asia's first stock exchange.• 12th century France the courretiers de change - Debt of
Agriculture – First Brokers.• 13th Century - 1309 Family Van der Beurze had a building
in Antwerp - Where people trade.• 13th Century - 1351 Venetian bankers began to trade in
government securities. • 14 Century – Bankers in Pisa and Florence also began trading
in government securities.• 16th – Century – 1602 Dutch East India Company (Joint Stock
Company) started to trade to raise fund - Amsterdam Exchange
• Dutch people were pioneer in short selling but it was banned in 1610
Function & Purpose
• To Raise Fund.• Liquidity – Easy to Sell & Buy rather than investing
like Real Estate and so on..– Companies are also trading its own share for
Operational (Liquidity) Expense Needs.• Operating as Clearing House – Buy & Sell – Investor Safety.• Economy Growth – Promote Production of Products, Services & Employment Opportunities.
Investment Strategies or Tools to Analysis the Performance of Stock
• Fundamental Analysis– Financial Statements like Balance Sheet, Trial
Balance and so on…• Technical Analysis– Using of Charts and Quantitative Techniques like
Trend Line….• Index Method– Buying weighted Stock of Entire Stock Market..• Eg: BSE – Top 30 Blue Chip Companies…
Leveraged strategies• Short Selling
– The trader borrows stock then sells it on the market, hoping for the price to fall.
• Margin Buying– The trader borrows money (at interest from Brokers) to buy a
stock based on collateral from other stocks the trader owns outright.
– Eg: Regulation of US – for Investing $1000 – 50% can be borrowed on the basis of Stock. If price falls lower than the Margin Value the brokers will sold the share to the safety of borrowed money.
• Derivatives– It may be used to control large blocks of stocks for a much smaller
amount of money than would be required by outright purchase or sales.
Stock Exchange Crashes
• Wall Street Crash of 1929• the stock market crash of 1973–74• The Black Monday of 1987• The Dot-com bubble of 2000• Stock Market Crash of 2008.
Circuit Breakers
• In 1990 - The New York Stock Exchange and the Chicago Mercantile Exchange - Circuit Breakers for Dow Index.
• Halts the Trade.• If Dow index Points declines a prescribed
number of points for a prescribed amount of time. –
New York Stock Exchange (NYSE) circuit breakers
% Drop Time of drop Close trading for
10 before 2 pm one hour halt
10 2 pm – 2:30 pm half-hour halt
10 after 2:30 pm market stays open
20 before 1 pm halt for two hours
20 1 pm – 2 pm halt for one hour
20 after 2 pm close for the day
30 any time during day close for the day
Single - Stock Circuit Breakers
• In February 2012, the Investment Industry Regulatory Organization of Canada (IIROC) introduced single-stock circuit breakers.
World Stock Exchanges
Rank Economy Stock Exchange Location
Market Capitaliza
tion(USD
Billions)
Trade Value(USD
Billions)
1 United States Europe
NYSE Euronext (US & Europe)
New York City
14,242 20,161
2 United States Europe
NASDAQ OMX (US & North Europe)
New York City
4,687 13,552
3 Japan Tokyo Stock Exchange Tokyo 3,325 3,972
4 United Kingdom London Stock Exchange
London 3,266 2,837
5 China Shanghai Stock Exchange
Shanghai 2,357 3,658
6 Hong Kong Hong Kong Stock Exchange
Hong Kong 2,258 1,447
7 Canada Toronto Stock Exchange
Toronto 1,912 1,542
8 Brazil BM&F Bovespa São Paulo 1,229 931
Cont…..9 Australia Australian Securities
ExchangeSydney 1,198 1,197
10 Germany Deutsche Börse Frankfurt 1,185 1,758
11 Switzerland SIX Swiss Exchange Zurich 1,090 887
12 China Shenzhen Stock Exchange
Shenzhen 1,055 2,838
13 Spain BME Spanish Exchanges
Madrid 1,031 1,226
14 India Bombay Stock Exchange
Mumbai 1,007 148
15 South Korea Korea Exchange Seoul 996 2,029
16 India National Stock Exchange of India
Mumbai 985 589
17 Russia MICEX-RTS Moscow 800 514
18 South Africa JSE Limited Johannesburg 789 372
Stock Exchanges in INDIA
• Bombay Stock Exchange (BSE)• National Stock Exchange of
India (NSE)• Indian Commodity Exchange (ICEX)• United Stock Exchange of India (USE)• Multi Commodity Exchange (MCX)• MCX Stock Exchange (MCX-SX)• Over the Counter Exchange of
India (OTCEI)• Inter-connected Stock Exchange of
India (ISE)• Madras Stock Exchange (MSE)• Ahmedabad Stock Exchange (ASE)
• Bhubaneshwar Stock Exchange (BhSE)• Cochin Stock Exchange (CSE)• Hyderabad Stock Exchange (HSE)• Calcutta Stock Exchange (CSE)• Delhi Stock Exchange (DSE)• Bangalore Stock Exchange• Madhya Pradesh Stock Exchange,
Indore• Jaipur Stock Exchange (JSE)• Magadh Stock Exchange, Patna• UP Stock Exchange (UPSE)• Vadodara Stock Exchange,Vadodara
(VSE)
Commodity Exchanges
• Multi Commodity Exchange of India Limited (MCX)
• National Commodity & Derivatives Exchange Limited (NCDEX)
• Indian National Multi-Commodity Exchange (NMCE)
• Commodity Exchange Limited ICEX.
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