presentation of history of stock market
DESCRIPTION
Bishnu & His Friends, especially Lead by BishnuTRANSCRIPT
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 1/20
Common Stock
Financing corporation
Good Morning
Bishnu & His FriendsBishnu Dhamala
Amrit Thapa
Rabindra eupane
!!"!
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 2/20
#hat #e are going to $resent%
"ntroduction
"Histor' o( )orld Stock Market
"Histor' o( epalese StockMarket
"Corporate *)nership"Conclusion
!!"+
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 3/20
Corporate *)nership
The major advantage of the corporate form of business
is the ease of raising capital as both large and small
investors can participate in corporate ownership.
Simple tobecome an
owner
Easy totransfer
ownership
Provideslimited
liability
Because a corporation is a separate legal entity, it can Own assets. ncur liabilities. Sue and be sued. Enter into contracts.
!!",
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 4/20
The History of Stock Market in the WorldThe History of Stock Market in the World
-
Amsterdam Stock Exchange in 1602 in the city of Amsterdam, Netherlands.
Paris Borse in 1!2" in Paris, #rance.
Philadel$hia Stock Exchange in 1!%0 in Philadel$hia, &SA.'ondon Stock Exchange in 1(01 in 'ondon, England. )o*e+er, a market had existed
$re+iosly *ith records -eginning in 16%( agro/commodity at onathans 3offee
)ose, also in 'ondon.
4ilan Stock Exchange in 1(0( in 4ilan, 5taly.
Ne* ork Stock Exchange in 1(1! in Ne* ork, &SA. 7his exchange *as $receded -y the Btton*ood Agreement of 1!%2.
#rankfrt Stock Exchange in 1(20 in #rankfrt, 8ermany. 1(20 denotes the first
records of shares -eing traded. 7here *as, ho*e+er, a market for -onds de-t
instrments since the late 1(th centry.
Bolsa de 4adrid in 1(91 in 4adrid, S$ain.7oronto Stock Exchange in 1(61 in 7oronto, 3anada.
Astralian Stock Exchange in 1(!2 in Sydney, Astralia.
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 5/20
5ndian Stock 4arket
Bom-ay Stock Exchange in 1(!:.
Ne$alese Stock 4arket
Ne$al Stock Exchange NEPSE in anary 19, 1%%".
7he history of common stock
7he oldest existing stock certificate *as issed in 1606 for a
;tch com$any <ereinigte =ostindische 3om$aignie
5n Ne$al, Biratnagar te 4ills 'imited, in 1%9! A.;. issed the
first common stock in Ne$al.
.
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 6/20
Brief !istory of stoc" mar"etBrief !istory of stoc" mar"et
development in #epaldevelopment in #epal Stock market -egan *ith the isse of shares -y Biratnagar te 4ills 'td in
1%9!. Secrity 4arketing 3entre S43 *as esta-lished in A$ril 1%!! nder
5ndstrial Policy, 1%!" *ith the o->ecti+e of facilitating the transaction ofgo+ernment de+elo$ment -onds and cor$orate secrities.
S43 started secondary trading of secrities in No+em-er 1%(1 *hich
restricted to go+ernment -onds. Secrity Exchange Act, 1%(9 *as enacted in 1%(9. 7he then S43 *as con+erted into Secrities Exchange 3entre SE3 in 1%(".
SE3 o$ened its floor for cor$orate share trading in No+em-er 1%(". 7he first amendment in Secrities Exchange Act, 1%(9 in 1%%9 $a+ed the *ay
for the restrctring of stock market in Ne$al, *hich led to esta-lishSecrities Board of Ne$al SEB=N in 1%%9 *ith a mandate to reglate andde+elo$ the stock market.
7he first amendment in the Act also led to con+ert the then SE3 into NEPSE,a fll/fledged o$en/ot/cry trading system *ith the indction of stock -rokersin anary 19, 1%%".
/
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 7/20
$oting rights.
%ividends.
&esidual claims.Stoc"holder
Benefits
Corporate *)nership
Preemptive rights.
!!"0
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 8/20
$ i c e P r e s i d e n t
' P r o d u c t i o n (
$ i c e P r e s i d e n t
' ) a r " e t i n g (
$ i c e P r e s i d e n t
' * i n a n c e (
$ i c e P r e s i d e n t
' P e r s o n n e l (
P r e s i d e n t
B o a r d o f % i r e c t o r s
S t o c " h o l d e r s
' O w n e r s o f v o t i n g s h a r e s (
Corporate *)nership
!!"1
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 9/20
23uit' 4ersus Debt Financing
Ad5antages o( e3uit'
6 23uit' does not ha5e tobe repaid7
6 Di5idends are optional7
Ad5antages o( debt
6 nterest on debt is ta8deductible7
6 Debt does not change
stockholder control7
Ad5antages o( e3uit' and debt (inancing7 Ad5antages o( e3uit' and debt (inancing7
!!"9
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 10/20
Two primary sources of
Stoc"holders+ Euity
Common Stock Transactions
-ontributed
-apital
-ommon
Stoc"
dditional
Paid/in
-apital
&etained
Earnings
!!"!:
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 11/20
Authori;ation< ssuance< and
Repurchase o( Stock
The ma0imum number
of shares of capital
stoc" that can be
issued to the public.
ssued
shares are
authori1ed
shares of
stoc" that
have beendistributed to
stoc"holders.
2nissued
shares of
stoc" are
shares that
have never
beendistributed to
stoc"holders.
2nissued
Shares
Treasury
Shares
Outstanding
Shares
Outstanding shares areissued shares that are
owned by stoc"holders.
uthori1ed
Shares
!!"!!
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 12/20
Stock Authori;ation
Par value is anarbitrary amountassigned to each
share of stoc" when itis authori1ed.
Par value is anarbitrary amountassigned to each
share of stoc" when itis authori1ed.
)ar"et price is theamount that each
share of stoc" will sellfor in the mar"et.
≠
!!"!+
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 13/20
Stock ssuance
nitial public offering
'PO(
The first time a
corporation issues
stoc" to the public.
Seasoned new issue
Subseuent issues
of new stoc" to the
public.
!!"!,
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 14/20
Di5idends on Common Stock
%eclared by board
of directors.
#ot legallyreuired.
-reates liability at
declaration.
&euires sufficient &etained
Earnings and -ash.
!!"!-
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 15/20
Di5idends Dates
!!"!.
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 16/20
&ecord at currentmar"et value
of stoc".
&ecord atpar value
of stoc".
Small 3arge
The journal entry moves an amount from
&etained Earnings to other euity accounts.
Stock Di5idends
Stoc" dividend 4 56 7 589Stoc" dividend : 56 7 589
!!"!/
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 17/20
$re(erred Stock Di5idends
6 -urrent %ividend Preference; The currentpreferred dividends must be paid beforepaying any dividends to common stoc".
6 -umulative %ividend Preference; nyunpaid dividends from previous years'dividends in arrears( must be paid beforecommon dividends are paid.
f the preferred stoc" is noncumulative, any
dividends not declared in previous years are lost
permanently.
!!"!0
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 18/20
#et ncome
verage #umber of -ommon Shares Outstanding
EPS <
Earnings per share is probably the singlemost widely watched financial ratio.
2arnings $er Share =2$S>
!!"!1
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 19/20
Return on 23uit' =R*2>
#et ncome
verage Stoc"holders+ Euity&OE <
&eturn on euity is the amount earned
for each dollar invested by stoc"holders.
!!"!9
7/21/2019 Presentation of History of Stock Market
http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 20/20
Thank 'ou