stock market report final

7/27/2019 Stock Market Report Final

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Report

ON

Client Perception about Equity, Commodity and Currency

Market

Submitted in partial fulfillment of the requirement for

DEGREE

IN

Post Graduation in Diploma ManagementSubmitted by

MOINUL HAQUE KHAN

(BM-012089)

Under the Guidance of

Vijendra Dhayani

IMS

INSTITUTE OF MANGEMENT STUDIES

GHAZIABAD


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CONTENTS

1.Statement of the problem.

2.Background of the study .

3.Objective of the study..

4. Research methodology

Data collection

Data analysis

Data interpretation

Sampling Design

5.Tentative Chapterisation

1.INTRODUCTION

2.WHAT IS EQUITY MARKKET?

A.FEATURES OF EQUITY SHARES.

B.EQUITY INVESTMENT

3.COMMODITY MARKET

A.EVOLUTION OF COMMODITY FUTURES MARKET IN

INDIA.B.REGULATION

C.PARTICIPATION OF THE EXCHANGES

D.POTENTIAL OF THE MARKET

E.INVESTMENT OPTION

4.WHAT IS CURRENCY MARKET?

A.HOW DID CURRENCY TRADING DEVELOP?B.CHARACTERISTCS OF FOREX TRADING

C.FACTOR EFFECTING EXCHANGE RATES.


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esearch problem is the basic statement of

any research proposal according to which

the researcher has to work upon. There are

many process of the derivation of any

research problem but the steps used here

for the derivation of research problem is

mentioned below:-

Understand the business situation

identify the key symptoms

Identify (isolate) the problems from

symptoms

Write managerial decision statement

and corresponding research purpose

Determine unit of analysis

Determine relevant variables State research questions/objectives

and/or hypothesis.

The main issues considered while defining research

problem were stated below:-

R

CHAPTER 1: STATEMENT

OF THE PROBLEM

First of all we have to

understand the

business situation i.e.

we have to identify th

key symptoms of any

case.

The next step is toisolate the problems

from symptoms.

Then we have to write

managerial decision

statement and

corresponding researcpurpose.

Then we have to

determine the unit of

analysis.

Then we have to

determine relevantvariables.

Then we have to state

research question or

hypothesis.


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P :- PAST INFORMATION (SECONDARY DATA / MIS)

R :- RESOURCES AND CONSTRAINTS

O :- OBJECTIVES

B :- BUYER BEHAVIOUR (HUMAN OR ORGANIZATIONAL)

L :- LEGAL ENVIRONMENT

E :- ECONOMIC ENVIRONMENT

M :- MARKETING AND TECHNOLOGICAL SKILLS

Here in the given case the main work is to find out the following

things:-

EVOLUTION OF THE COMMODITY MARKET? PARTICIPATION OF THE EXCHANGES.

HOW DID CURRENCY TRADING DEVELOP?

FACTOR EFFECTING EXCAHNGE RATES.


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counties and "Beurzen" soon opened in Ghent and Rotterdam.

In the middle of the 13th century, Venetian bankers began totrade in government securities. In 1351 the Venetian government

outlawed spreading rumors intended to lower the price ofgovernment funds

Bankers in Pisa, Verona, Genoa and Florence also began tradingin government securities during the 14th century. This was onlypossible because these were independent city states not ruled bya duke but a council of influential citizens. Italian companies werealso the first to issue shares. Companies in England and the LowCountries followed in the 16th century.

The Dutch East India Company (founded in 1602) was thefirst joint-stock company to get a fixed capital stock and as aresult, continuous trade in company stock occurred on the

Amsterdam Exchange. Soon thereafter, a lively trade invarious derivatives, among which options and repos, emerged onthe Amsterdam market. Dutch traders also pioneered shortselling - a practice which was banned by the Dutch authorities asearly as 1610.

There are now stock markets in virtually every developed andmost developing economies, with the world's largest marketsbeing in the United States, United Kingdom, Japan, India,China, Canada, Germany (Frankfurt Stock Exchange),France, South Korea and the Netherlands.
https://en.wikipedia.org/wiki/Ghenthttps://en.wikipedia.org/wiki/Rotterdamhttps://en.wikipedia.org/wiki/Venicehttps://en.wikipedia.org/wiki/Pisahttps://en.wikipedia.org/wiki/Veronahttps://en.wikipedia.org/wiki/Genoahttps://en.wikipedia.org/wiki/Florencehttps://en.wikipedia.org/wiki/Dutch_East_India_Companyhttps://en.wikipedia.org/wiki/Joint-stock_companyhttps://en.wikipedia.org/wiki/Derivative_(finance)https://en.wikipedia.org/wiki/Amsterdamhttps://en.wikipedia.org/wiki/Short_(finance)https://en.wikipedia.org/wiki/Short_(finance)https://en.wikipedia.org/wiki/Indiahttps://en.wikipedia.org/wiki/Canadahttps://en.wikipedia.org/wiki/Frankfurt_Stock_Exchangehttps://en.wikipedia.org/wiki/South_Koreahttps://en.wikipedia.org/wiki/South_Koreahttps://en.wikipedia.org/wiki/Frankfurt_Stock_Exchangehttps://en.wikipedia.org/wiki/Canadahttps://en.wikipedia.org/wiki/Indiahttps://en.wikipedia.org/wiki/Short_(finance)https://en.wikipedia.org/wiki/Short_(finance)https://en.wikipedia.org/wiki/Amsterdamhttps://en.wikipedia.org/wiki/Derivative_(finance)https://en.wikipedia.org/wiki/Joint-stock_companyhttps://en.wikipedia.org/wiki/Dutch_East_India_Companyhttps://en.wikipedia.org/wiki/Florencehttps://en.wikipedia.org/wiki/Genoahttps://en.wikipedia.org/wiki/Veronahttps://en.wikipedia.org/wiki/Pisahttps://en.wikipedia.org/wiki/Venicehttps://en.wikipedia.org/wiki/Rotterdamhttps://en.wikipedia.org/wiki/Ghent


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The main objective of the report is to find

out and explain the following thing to the

readers of this dissertation:-

What is equity market?

What is commodity market?

What is currency market?

Further the objective of the study is to make

understand the readers of this report about

the perception of client about Equity

,Commodity and Currency market.

Research design specifies which research

questions must be answered, how and when

the data will be gathered, and how the data

will be analyzed

The given case basically employs a CASE

BASED RESEARCH DESIGN in which the

researcher is required to to gather, answer

and analyze the data according to the

situations in the given case.

CHAPTER 3: OBJECTIVE OF

THE STUDY

Objective of the study

the basic foundation o

any research proposa

Objective of the study

tells what author wan

to do with the report.

The main objectives of

this report are

mentioned below:-

1.What is equity

market?

2.What iscommodity

market?

3.What is curren

market?

The study is to

make understand

the readers of thireport about the

perceptionof clien

aboutEquity,Com

odity and Currenc

market.


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DATA COLLECTION:-

There are two methods of data collection:-

1.Primary method of data collection

2.Secondary method of data

collection

PRIMARY METHOD OF DATA

COLLECTION:-

In the primary method of data collection

information is collected for first time. The

information can be used for solving the

particular problem under investigation.

ADVANTAGES OF PRIMARY METHOD OF

DATA COLLECTION:-

1.Answers a specific research question

2.Data are current3.Source of data is known

4.Secrecy can be maintained

CHAPTER 4: RESEARCH

METHODOLOGY

Research methodology

is one of the main par

of any researchproposal which includ

the following things:-

Data collection:-

there are two

ways of data

collection i.e.

primary method

of data collection

and secondary

method of data

collection.


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ANNOVA

Chi-square test

Likerts scale

Nominal scale

Ordinal scale

Interval scale

Ratio scale

NOMINAL SCALE:-

It is not a measure of quantity. It

generally measures identity anddifference. On this type of scale

people either belong to a group or

they do not. For example:-

1.Eye color:- blue, brown, green

etc.

2.Biological sex (male or female)

3.Democrat, republican, green,

libertarian, etc.

4.Married, single, divorced, widowed.

In this sometimes numbers are used to designate category

membership. For example:-

1.= united states

2.= mexico

3.= Canada

4.= other

Data analysis is an

important method

for the forecasting of

any event which

includes ANNOVA,

chi-square test,

likerts scale,nominal scale etc.


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Here, the numbers do not have

numeric implications; they are

simply convenient labels.

ORDINAL SCALE:-

It designates an ordering (greater

than or less than). In this we does

not assumes that the intervalsbetween numbers are equal.

INTERVAL SCALE:-

It designates an equal interval

ordering. The difference in

temperature between 20 degrees F

and 25 degrees F is the same as

the difference between 76 degrees

F and 81 degrees F. examples:-

temperature in Fahrenheit or

Celsius is interval. Common IQ

tests are assumed to use an

interval metric.

RATIO SCALE:-

Ordinal

scale,

interval

scale, ratio

scale and

nominal

scale are the

bestmethods of

analyzing

the data.


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It designates an equal interval ordering

with a true zero point (i.e. the zero implies

an absence of the thing being measured).Examples:-

Temperature in kelvin (zero is the

absence of heat. Cant get colder).

Measurements of heights of students

in this class (zero means complete

lack of height)

SAMPLING DESIGN:-

There are two types of sampling

techniques which can be used for

conducting research:-

1.Probability sampling

2.Non probability sampling

PROBABILITY SAMPLING includes:-

A.Simple random sampling

B.Stratified sampling

C.Cluster samplingD.Systematic sampling

NON PROBABILITY SAMPLING includes:-

There are two

types of sampling

i.e. probability

sampling and non

probabilitysampling.

Probability

sampling includes

simple random

sampling,

stratified

sampling, cluster

sampling and

systematic

sampling.

Non probability

sampling includes

convenience

sampling,

judgmental

sampling, quota

sampling and

snowball

sampling.


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1.INTRODUCTION

2.WHAT IS EQUITY MARKET

3.WHAT IS COMMODITY MARKET

4.WHAT IS CURRENCY MARKET

5.ABOUT OMKAM GROUP

6.COMPANY PROFILE

7.SERVICES

8.WHY TO CHOOSE OMKAM GROUP

CHAPTER 5:

TENTATIVE

CHAPTERISATION


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The limitations incurred while conducting the dissertation are

mentioned below:-

TIME LIMITATION:- time restriction is the major limitation

incurred while conducting the REPORT. The short span of

time may lead to incorrect conclusions

RESOURCE LIMITATION:- the resource limitation is also amajor limitation incurred while conducting the dissertation.

The resources required to carry on the dissertation are very

less and this may also be the reason of incorrect conclusions

or incorrect decisions.

CHAPTER 6:

LIMITATIONS


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SERIOUSNESS:- In general context, if we see the students

conducting dissertation do not take their work seriously ( in

other words we can say that students are not serious

towards their dissertation work ).

Time limitation,

resource limitation and

seriousness are the

major drawbacks

which can be incurred

by any researcher.


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INTRODUCTION

The stock market is one of the most important sourcesfor companies to raise money. This allows businesses to bepublicly traded, or raise additional financial capital for expansionby selling shares of ownership of the company in a public market.The liquidity that an exchange affords the investors gives themthe ability to quickly and easily sell securities. This is an attractivefeature of investing in stocks, compared to other less liquidinvestments. Some companies actively increase liquidity bytrading in their own shares.

History has shown that the price ofshares and other assets is animportant part of the dynamics of economic activity, and caninfluence or be an indicator of social mood. An economy wherethe stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often consideredthe primary indicator of a country's economic strength anddevelopment.

Rising share prices, for instance, tend to be associated withincreased business investment and vice versa. Share prices alsoaffect the wealth of households and their consumption.Therefore, central banks tend to keep an eye on the control andbehavior of the stock market and, in general, on the smoothoperation offinancial system functions. Financial stability isthe raison d'tre of central banks.

Exchanges also act as the clearinghouse for each transaction,meaning that they collect and deliver the shares, and guaranteepayment to the seller of a security. This eliminates the risk to an

individual buyer or seller that the counterparty could default onthe transaction.

The smooth functioning of all these activities facilitates economicgrowth in that lower costs and enterprise risks promote theproduction of goods and services as well as possibly employment.
https://en.wikipedia.org/wiki/Companieshttps://en.wikipedia.org/wiki/Liquidityhttps://en.wikipedia.org/wiki/Share_(finance)https://en.wikipedia.org/wiki/Central_bankhttps://en.wikipedia.org/wiki/Financial_systemhttps://en.wiktionary.org/wiki/raison_d%27%C3%AAtrehttps://en.wikipedia.org/wiki/Counterpartyhttps://en.wikipedia.org/wiki/Economic_growthhttps://en.wikipedia.org/wiki/Economic_growthhttps://en.wikipedia.org/wiki/Economic_growthhttps://en.wikipedia.org/wiki/Economic_growthhttps://en.wikipedia.org/wiki/Counterpartyhttps://en.wiktionary.org/wiki/raison_d%27%C3%AAtrehttps://en.wikipedia.org/wiki/Financial_systemhttps://en.wikipedia.org/wiki/Central_bankhttps://en.wikipedia.org/wiki/Share_(finance)https://en.wikipedia.org/wiki/Liquidityhttps://en.wikipedia.org/wiki/Companies


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In this way the financial system is assumed to contribute toincreased prosperity.

Participants in the stock market range from small individual stockinvestors to large hedge fund traders, who can be based

anywhere in the world. Their orders usually end up witha professional at a stock exchange, who executes the order ofbuying or selling.

Some exchanges are physical locations where transactions arecarried out on a trading floor, by a method known as open outcry.This type ofauctionis used in stock exchanges and commodityexchanges where traders may enter "verbal" bids and offerssimultaneously. The other type of stock exchange is a virtual

kind, composed of a network of computers where trades aremade electronically via traders.

India

The list maintained by the Securities and Exchange Board of India (SEBI) is not

current as of 2010.

Bombay Stock Exchange (BSE) National Stock Exchange of India (NSE)

Indian Commodity Exchange (ICEX)

United Stock Exchange of India (USE)

Multi Commodity Exchange (MCX)

Over the Counter Exchange of India (OTCEI)

Inter-connected Stock Exchange of India (ISE)

Madras Stock Exchange (MSE)

Coimbatore Stock Exchange (CSX)

Ahmedabad Stock Exchange (ASE) Bhubaneshwar Stock Exchange (BhSE)

Cochin Stock Exchange (CSE)

Hyderabad Stock Exchange (HSE)

Calcutta Stock Exchange (CSE)
https://en.wikipedia.org/wiki/Stock_investorshttps://en.wikipedia.org/wiki/Stock_investorshttps://en.wikipedia.org/wiki/Hedge_fundhttps://en.wikipedia.org/wiki/Trader_(finance)https://en.wikipedia.org/wiki/Professionhttps://en.wikipedia.org/wiki/Open_outcryhttps://en.wikipedia.org/wiki/Auctionhttps://en.wikipedia.org/wiki/Commodities_exchangehttps://en.wikipedia.org/wiki/Commodities_exchangehttps://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttps://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttps://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttps://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1https://en.wikipedia.org/wiki/United_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttps://en.wikipedia.org/wiki/OTC_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Inter-connected_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Madras_Stock_Exchangehttps://en.wikipedia.org/wiki/Coimbatore_Stock_Exchangehttps://en.wikipedia.org/wiki/Ahmedabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Bhubaneshwar_Stock_Exchangehttps://en.wikipedia.org/wiki/Cochin_Stock_Exchangehttps://en.wikipedia.org/wiki/Hyderabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Calcutta_Stock_Exchange_Association_Limitedhttps://en.wikipedia.org/wiki/Calcutta_Stock_Exchange_Association_Limitedhttps://en.wikipedia.org/wiki/Hyderabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Cochin_Stock_Exchangehttps://en.wikipedia.org/wiki/Bhubaneshwar_Stock_Exchangehttps://en.wikipedia.org/wiki/Ahmedabad_Stock_Exchangehttps://en.wikipedia.org/wiki/Coimbatore_Stock_Exchangehttps://en.wikipedia.org/wiki/Madras_Stock_Exchangehttps://en.wikipedia.org/wiki/Inter-connected_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/OTC_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Multi_Commodity_Exchangehttps://en.wikipedia.org/wiki/United_Stock_Exchange_of_Indiahttps://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1https://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttps://en.wikipedia.org/wiki/Securities_and_Exchange_Board_of_Indiahttps://en.wikipedia.org/wiki/Commodities_exchangehttps://en.wikipedia.org/wiki/Commodities_exchangehttps://en.wikipedia.org/wiki/Auctionhttps://en.wikipedia.org/wiki/Open_outcryhttps://en.wikipedia.org/wiki/Professionhttps://en.wikipedia.org/wiki/Trader_(finance)https://en.wikipedia.org/wiki/Hedge_fundhttps://en.wikipedia.org/wiki/Stock_investorshttps://en.wikipedia.org/wiki/Stock_investors


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Delhi Stock Exchange (DSE)

Bangalore Stock Exchange (BgSE)

Madhya Pradesh Stock Exchange, Indore

Jaipur Stock Exchange (JSE)

Magadh Stock Exchange, Patna UP Stock Exchange (UPSE)

Vadodara Stock Exchange,Vadodara (VSE)

Guwahati Stock Exchange Ltd

Ludhiana Stock Exchange Association Ltd

Kanara Stock Exchange Ltd

Mangalore Stock Exchange Ltd

Pune Stock Exchange Ltd

Saurashtra Kutch Stock Exchange Ltd

Meerut Stock Exchange Ltd Intrex Trade Exchange Ltd

United Stock Exchange of India

Mahurat trading

Commodity Exchange

Multi Commodity Exchange of India Limited (MCX)

National Commodity & Derivatives Exchange Limited (NCDEX)

Indian National Multi-Commodity Exchange (NMCE) Commodity Exchange Limited ICEX.
https://en.wikipedia.org/wiki/Delhi_Stock_Exchange_Associationhttps://en.wikipedia.org/wiki/Bangalore_Stock_Exchangehttps://en.wikipedia.org/wiki/Madhya_Pradesh_Stock_Exchangehttps://en.wikipedia.org/wiki/Jaipur_Stock_Exchangehttps://en.wikipedia.org/wiki/Magadh_Stock_Exchangehttps://en.wikipedia.org/wiki/UP_Stock_Exchangehttps://en.wikipedia.org/wiki/Vadodara_Stock_Exchangehttps://en.wikipedia.org/w/index.php?title=Guwahati_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Ludhiana_Stock_Exchange_Association_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Kanara_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Mangalore_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Pune_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Saurashtra_Kutch_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Meerut_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/wiki/Intrex_Trade_Exchange_Ltdhttps://en.wikipedia.org/wiki/United_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Mahurat_tradinghttps://en.wikipedia.org/wiki/MCX_Stock_Exchangehttps://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Indian_Commodity_Exchange&action=edit&redlink=1https://en.wikipedia.org/wiki/MCX_Stock_Exchangehttps://en.wikipedia.org/wiki/Mahurat_tradinghttps://en.wikipedia.org/wiki/United_Stock_Exchange_of_Indiahttps://en.wikipedia.org/wiki/Intrex_Trade_Exchange_Ltdhttps://en.wikipedia.org/w/index.php?title=Meerut_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Saurashtra_Kutch_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Pune_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Mangalore_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Kanara_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Ludhiana_Stock_Exchange_Association_Ltd&action=edit&redlink=1https://en.wikipedia.org/w/index.php?title=Guwahati_Stock_Exchange_Ltd&action=edit&redlink=1https://en.wikipedia.org/wiki/Vadodara_Stock_Exchangehttps://en.wikipedia.org/wiki/UP_Stock_Exchangehttps://en.wikipedia.org/wiki/Magadh_Stock_Exchangehttps://en.wikipedia.org/wiki/Jaipur_Stock_Exchangehttps://en.wikipedia.org/wiki/Madhya_Pradesh_Stock_Exchangehttps://en.wikipedia.org/wiki/Bangalore_Stock_Exchangehttps://en.wikipedia.org/wiki/Delhi_Stock_Exchange_Association


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What is EQUITY MARKET

Equity shares are those shares which are ordinary in the courseof company's business. They are also called as ordinary shares.

These share holders do not enjoy preference regarding payment

of dividend and repayment of capital. Equity shareholders are

paid dividend out of the profits made by a company. Higher the

profits, higher will be the dividend and lower the profits, lower

will be the dividend.

Features of Equity Shares:

(1) Owned capital: Equity share capital is owned capitalbecause it is the money of the shareholders who are actually theowners of the company.

(2)Fixed value or nominal value: Every share has fixed valueor a nominal value. For example, the price of a share is Rs. 10/-which indicates a fixed value or a nominal value.

(3) Distinctive number: Every share is given a distinct number

just like a roll number for the purpose of identification.

(4) Attached rights: A share gives its owner the right to receivedividend, the right to vote, the right to attend meetings, the rightto inspect the books of accounts.


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(5) Return on shares: Every shareholder is entitled to a returnon shares which is known as dividend. Dividend depends on the

profits made by a company. Higher the profits, higher will be thedividend and vice versa.

(6) Transfer of shares: Equity shares are easily transferable,that is if a person buys shares of a particular company and hedoes not want them, he can sell them to any one, therebytransferring the shares in the name of that person.

(7) Benefit of right issue: When a company makes fresh issueof shares, the equity shareholders are given certain rights in thecompany. The company has to offer the new shares first to theequity shareholders in the proportion to their existing shareholding. In case they do not take up the shares offered to them,the same can be issue to others. Thus, equity shareholders getthe benefits of the right issue.

(8) Benefit of Bonus shares: Joint stock companies whichmake huge profits, issue bonus shares to their ordinaryshareholders out of the accumulated profits. These shares areissued free of cost in proportion to the number of existing equityshare holding. In case they do not take up the shares offered tothem, the same can be issued to others. Thus, equityshareholders get the benefits of the right issue.

(9) Irredeemable: Equity shares are always irredeemable. Thismeans equity capital is not returnable during the life time of acompany.


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(10)Capital appreciation: The nominal or par value of equityshares is fixed but the market value fluctuates. The market valuemainly depends upon profitability and prosperity of the company.

High rate of dividend is paid with high rate of profit, theshareholders capital is appreciated through an appreciation in themarket value of shares. (i.e. higher the rate of dividend, higherthe market value of the shares.)


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Equity investments

An equity investment generally refers to the buying and holdingof shares ofstock on a stock market by individuals and firms inanticipation of income from dividends and capital gains, as thevalue of the stock rises. Typically equity holders receive votingrights, meaning that they can vote on candidates for the board ofdirectors (shown on a proxy statement received by the investor)

as well as certain major transactions, and residual rights,meaning that they share the company's profits, as well as recoversome of the company's assets in the event that it folds, althoughthey generally have the lowest priority in recovering theirinvestment. It may also refer to the acquisition of equity(ownership) participation in a private (unlisted) company ora startup company. When the investment is in infant companies,it is referred to as venture capital investing and is generallyregarded as a higher risk than investment in listed going-concern

situations.

The equities held by private individuals are often held as mutualfunds or as other forms ofcollective investment scheme, many ofwhich have quoted prices that are listed in financial newspapersor magazines; the mutual funds are typically managed byprominent fund management firms, such as Schroders, FidelityInvestments or The Vanguard Group. Such holdings allow

individual investors to obtain the diversification of the fund(s) andto obtain the skill of the professional fund managers in charge ofthe fund(s). An alternative, which is usually employed by largeprivate investors and pension funds, is to hold shares directly; inthe institutional environment many clients who
http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Proxy_statementhttp://en.wikipedia.org/wiki/Startup_companyhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Schrodershttp://en.wikipedia.org/wiki/Fidelity_Investmentshttp://en.wikipedia.org/wiki/Fidelity_Investmentshttp://en.wikipedia.org/wiki/The_Vanguard_Grouphttp://en.wikipedia.org/wiki/Diversification_(finance)http://en.wikipedia.org/wiki/Fund_managerhttp://en.wikipedia.org/wiki/Fund_managerhttp://en.wikipedia.org/wiki/Diversification_(finance)http://en.wikipedia.org/wiki/The_Vanguard_Grouphttp://en.wikipedia.org/wiki/Fidelity_Investmentshttp://en.wikipedia.org/wiki/Fidelity_Investmentshttp://en.wikipedia.org/wiki/Schrodershttp://en.wikipedia.org/wiki/Collective_investment_schemehttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Mutual_fundhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/Startup_companyhttp://en.wikipedia.org/wiki/Proxy_statementhttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Stock


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own portfolios have what are called segregated funds, as opposedto or in addition to the pooled mutual fund alternatives.

A calculation can be made to assess whether an equity is over orunderpriced, compared with a long-term government bond. This

is called the Yield Gap or Yield Ratio. It is the ratio ofthe dividend yield of an equity and that of the long-term bond.
http://en.wikipedia.org/wiki/Portfolio_(finance)http://en.wikipedia.org/wiki/Segregated_fundhttp://en.wikipedia.org/wiki/Yield_Gaphttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Yield_Gaphttp://en.wikipedia.org/wiki/Segregated_fundhttp://en.wikipedia.org/wiki/Portfolio_(finance)


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Commodity Market

Evolution of the Commodity futures markets in India

Commodity futures trading are an old concept and flourishedin the late nineteenth century. There were several suchexchanges that traded in specific commodities in certaingeographies. In the 1960s the futures market ran into troubleas high inflation resulted from a series of wars and droughts

in the country which lead to considerable speculation andhoarding of agricultural commodities. The government in itswisdom banned futures trading. However, trading wentunderground and got transformed into forward trading in thegrey market. These systems have worked very well and do soeven today where the rules of engagement are drawn up andadhered to. While settlement is smooth as any violation of theterms of engagement results in being ostracized, the pricediscovery system remains opaque and may not reflect the

reality. Gradually permission was given to various regionalexchanges to emerge dealing with specific commodities andregions, and came to be called regional exchanges. Here, theowners were the traders and there was considerable conflictof interest in running the operations.

Meanwhile as India went in for economic reforms in 1992,there was considerable progress in the financial sector. Towards

the end of the decade, there was talk of reviving futurestrading in commodities, and accordingly committees were setup to evaluate these options. By 2003, it was agreed to havethis business back and the concept of national level onlinemulticommodity exchanges emerged. The idea was to have somenew exchanges that were provided online trading on lines of the


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NSE in the stock market across the country and dealt with allcommodities. These exchanges were to be demutualized meaningthereby that traders could not be owners and the exchanges hadto be professionally managed. Accordingly 3 national level

exchanges emerged, NCDEX, MCX and NMCE. Recently anotherexchange, ICEX has commenced operations.


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REGULATION

Commodity futures markets are guided by theForward Contract regulation Act (FCRA) which was formulatedin 1952. Being an Act that is almost 60 years old means thatthere is need to revisit the Act and bring about the necessaryamendments. The FCRA recognizes commodities to be thosethat are deliverable and hence have to be tangible. This excludes

the use of indices which are very active in the securitiesmarket. Further, as the 1952 act spoke of futures only, optionsare not permitted and hence the sphere of activity is restrictedto a single instrument.

The regulator is the Forward Markets Commission, which isan arm of the Ministry of Consumer Affairs. The FMC is notan autonomous body like the SEBI (Securities Exchange Boardof India) and hence has limited powers in terms of bringing

about reforms in the country. Further, the Minister in chargeof this Ministry is also the Minster for Agriculture. This is aunique situation since the Ministry of Agriculture would alwayswork towards providing better incomes for farmers while theministry of Consumer Affairs would work towards loweringprices for consumers. Therefore there is this delicate balancethat has to be managed between protecting interests of farmersand consumers.

Over 70 products are traded on these exchanges and theperformance of the markets has been mixed. There are primarilytwo sets of products that are traded on exchanges. The firstare farm products which are unique to the country. Theseproducts are relevant to the country and have domestic pricediscovery. The factors affecting these prices are local supplyconditions with demand being virtually known as it does not


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Participation of the exchanges :

Presently participation on exchanges is purely retail in the sensethat regulation does not permit institutions such as mutual funds,banks and foreign institutional investors to trade in commodities.Institutions especially mutual funds and foreign investors haveproved to be very useful in the context of capital markets. Theyhave added depth and liquidity in the system which has enabledthe market to become comparable with some of the best in theworld today.

While the FMC has given permission to mutual funds andforeign investors to trade in non-agro commodities, theclearance from SEBI is required as they come under thepurview of the Ministry of Finance with SEBI being theregulator. Mutual funds would in fact be useful for individualsto invest as presently while there are no restrictions onindividuals to trade in commodity futures, the requisiteknowledge and research does not reside with this constituent.Therefore, just like how individuals do invest in securitiesmarket through mutual funds, a similar approach will be usefulfor this market.

The issue relating to foreign investors is theoretical. Ascommodity markets are delivery based, the question posed isas to what would happen in case these entities do end up withthe physical stock. There would be export-import policy issues.Further, is the market mature enough to have full transmissionof global trends to domestic markets?


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While a very high degree of correlation has been observedbetween domestic and foreign prices for most internationalcommodities that are widely traded in the world such as wheat,soybean, soy oil, corn, gold, metals, etc, foreign investors,

with their deep research and pockets would factor in thisinformation in the domestic market leading to price upheavalsfor which we may not be prepared. While these are legitimateconcerns, the solution is not to disallow the same, but tocreate suitable regulation for their operations. They could bemade to trade in non-delivery based operations only. Further,there could be limits placed on their operations to ensure thattheir operations do not drive the prices. Therefore, thesearguments should not be limiting factors here.

However, given this framework, it is only the retail brokers,processors who participate in the market and the growthwitnessed so far is exclusively to their interest.


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What is currency Market?

Trading in foreign exchange or currency exchange rates, (alsoknown as FOREX or FX trading), essentially consists ofspeculating on the way one currency will move against another,and profiting if they move the way you predict. All currencies aretraded in pairs, for example GBPUSD, (Great British Pound VS USDollar). An FX pair is always priced in the form of how many ofthe second currency you can get for one of the first. So, ifGBPUSD is at 1.55, this means one pound will get you 1.55dollars. As with other products, when you trade an FX pair, you

buy or sell. When you buy the pair you are speculating that thefirst currency will strengthen against the second and vice versafor when you sell.FOREX is the most widely traded product in the world. From thefollowing chart you can see that daily FX trading turnover throughmain exchanges as risen from around $500billion in 1988 to over$3 trillion in 2007 and it is estimated that it is nearer $4 trilliontoday. It is one of the fastest growing markets for retail investorsglobally as it is open 24 hours a day and you can profit from bothrising and falling prices.Growth in global FX Trading

Main foreign exchange market turnover, 1998-2010, measured in trillions ofUSD.


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How did Currency trading develop?

In 1944, the Bretton-Woods agreement was created to ensurestability of currencies by fixing gold at a rate of $35 per ounce.During this time most modern countries had gold basedcurrencies, there was a period of stability. This system hadweakness as the gold standard tended to create boom-bust

economies. When an economy strengthened, the country wouldimport heavily in order to expand. This would rapidly depletetheir gold reserves and the gold was required to support theircurrency. The monetary supply of this country would also drop,interest rates would rise and all economic activity would dwindleor stop and threaten to put the economy into a recession.After WWII, huge construction work was needed and a massiveamount of currency trading was required to raise the capital forthe work. In 1971 the Bretton-Woods agreement ended because

the US dollar ceased to be exchangeable for gold1

. By now theforces of supply and demand controlled the currency prices of themajor industrialised nations as currency was free to changehands. This encouraged larger volumes of trading and causedlarger price fluctuations in a nations currency. Finally, withglobalization and the development of computers and the internet,currency trading has become even easier and more accessible toboth individuals and institutions, and thus the FOREX market hasgrown to the $4 Trillion daily turnover we see now.


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What are the characteristics of Forex trading

The FOREX market is a very interesting and individual market; it

is certainly quite different from the more traditional stock market

or commodity futures markets. It is distinguished by the following

traits:

Very high trading volumes

Daily turnover of $4tn dwarfs other markets.

Extremely high liquidity

It can be bought or sold very easily, very low storage costs,immediate execution, and transparent pricing etc.

Geographical dispersion

FX can be traded from anywhere in the world with an Internetconnection.

Trading times

FX is traded 24 hours a day, 5 days a week, all year round. Thereis no dependence on seasonal factors, or future contract expiry.


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What are the factors that can affect exchange

rates? What should I look for when trading FOREX?

There are a number of factors that can strengthen or weaken a

countrys currency, short-term or long-term. The following are

considered to be major the factors that will impact the price of a

nations currency:

Interest Rates

Typically, an increase in a countrys interest rate will increase thedemand for the currency, and value of its currency becauseownership of this currency will provide greater returns.

Government Budget Deficits

A nations currency will usually weaken as a response to wideninggovernment budget deficits, and vice versa on narrowing deficits.

Balance of Trade

The trade flow between countries illustrates the demand for

goods and services, which in turn indicates demand for acountrys currency to conduct trade. So an increasing balance of

trade deficit will weaken the countrys currency.


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OMKAM GROUP


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OMKAM Capital market Private Limited

Company Profile

Omkam holds a unique place in the Indian securities markets.Because of our business model, size and local management, our

clients know they can count on us to continue to put them at theheart of everything we do.

Omkam has invested in leading-edge technology to ensure wehave a highly scalable business and we continue to recruit anddevelop the very best people in the Indian market.

Relationships have always driven Omkams approach to doingbusiness. Our clients lie at the heart of everything we do.

Omkam is committed to providing the very highest quality serviceto our clients, whether through corporate advice, institutionalsales and trading, private client services, equities research,broker dealer services or other financial Service.

We also understand that choosing the right investment partner isnot always easy and our clients must be satisfied that they areworking with a team that has the right combination ofpersistence, determination, deep market knowledge, global

networks and strategic thinking.

Omkam works hard to be our clients partner of choice for thelong term and we are committed to achieving our clientsinvestment objectives at all times.


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OMKAM is a leading financial services company offering a widerange of financial products to Individuals, Families, Corporatesand Institutions. The wide range on offer includes -Equities, Equity Derivatives, Currency Derivatives, CommodityDerivatives, Mutual Funds, Investment Banking, PrincipalStrategies, IPOs. The OMKAM Group is a member of NationalStock Exchange (NSE) ,the Bombay Stock Exchange (BSE), andthe leading Commodity Exchange in the country: NCDEX With therich experience of over 14 years in financial services , OMKAM is

committed towards providing personalized and value addedservices to the clients while maintaining the highest standards ofexcellence, ethics andprofessionalism.OMKAM Group includes:

OMKAM Capital Markets Pvt. Ltd. OMKAM Commodities Pvt. Ltd. OMKAM Securities Pvt Ltd.

Our Philosophy Clients' interestsalways come first. If we serve ourclients well, our own success willfollow. Attaining excellence inunderstanding and analyzing of Market trends and investmentsproducts to add value to our work processes and clientdeliverable. Building trust with clients by consistently operatingwith the highest levels of confidentiality, integrity, business ethicsand fairness.


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Commodity

OMKAM Commodities PVT LTD.offers a wide range of flexibility incommodity market trading in

NCDEX. We offers both Offline &Online trading platforms.

Salient features of OMKAMCommodity trading :

Live Market Watch for commoditymarket (NCDEX)Advisory services based on

Investment Research and MarketTrend analysis.Fully customizable user screendisplay's information based on userspreferences.A real time Browser based WebApplication and standaloneapplication for Desktops.A refresh based Web Site for GPRS

& Java enabled Mobile devices.Facility to put orders over thephone.Service for Walk-in Customer totrade through our branch offices.Margin based trading.


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Competitive Brokerages.

Mutual Fund

A mutual fund is a professionally managed type of collective investmenscheme that pools money From many investors and invests it in stocksbonds, short-term money market instruments, and/or

other securities. The income earned through these investments andthe capital appreciation realized are shared by its unit holders in

proportion to the number of units owned by them. Thus a MutualFund is one of the most suitable investments for the common man

as it offers an opportunity to invest in a diversified, professionallymanaged basket of securities at a relatively low cost.

In November 2009 ,SEBI permitted units of Mutual Fund schemes to be

transacted through registeredstock brokers of recognized stock exchange.

OMKAM provide a hasselfree trading in Mutual Funds listed withexchanges ( NSE & BSE )


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WHY TO CHOOSE OMKAM GROUP

COMPREHENSIVE RESEARCH

Research is a scientific undertaking which, by means of

logical and systematized techniques aims to:o Discover new facts or verify and test old factso Analyze their sequence, interrelationships and causal

explanationsThe ultimate purpose of research is to:

o Fill in gaps in informationo Find answers to questions so far unexplained

COMPREHENSIVE OFFERINGS

Our strategic staffing offering primarily supports thetechnology services market by providing managed servicesstaffing to major technology service providers and largecorporate users of external IT resources. We providetechnical resources for a broad range of functions including:

o Project/program management,o Application maintenance and enhancement,o

System implementation and integration,o Testing/quality assurance,o Design, engineering, and infrastructure support

SOPHISTICATED TECHNOLOGY


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As commodity market is very potential for business, the

angel co. should think about various ways to attract the

customers.


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Glossary

Arbitrage

The business of taking advantage of difference in price of a security traded on two

or more stock exchanges, by buying in one and selling in the other (or vice versa).

Quite simply it means you try to buy something cheap in one place, to make a

profit selling it somewhere else.Given the speed at which the financial markets now

operate, in practice the simultaneous purchase of foreign exchange, securities,

commodities or any other financial instrument in one market and the sale in

another at a higher price.

Basis Point (BP)

The smallest measure used in quoting yields on fixed income securities. One basis

point is one percent of one percent, or 0.01%.

Bear Market

A prolonged period of falling securities prices in a stock market.

Blue Chips

Blue Chips are shares of large, well established and financially sound companies with animpressive records of earnings and dividends. Generally, Blue Chip shares provide low tomoderate current yield and moderate to high capital gains yield. The price volatility of suchshares is moderate.Bull Market

A rising market with abundance of buyers and few sellers.Basket Trading

Basket trading is a facility by which investors are in a position to buy/sell all 30 scrips ofSensex in the proportion of current weights in the Sensex, in one go.

Call

The demand by a company or any other issuer of shares for payment. It may be thedemand for full payment on the due date, such as, for example, with a rights issue. It may,alternatively, be the demand for a further payment when the total amount is payable byinstalments.The calls are usually made several months apart by call letter and the shares

GLOSSARY


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are said to be paid-up when the final call has been paid. A call by a company should not beconfused with a call option.

ContractOn any securities market this is the agreement between a buyer and a seller

buy or sell securities. The written agreement between the seller and thebuyer to transfer ownership of the property from the former to the latter.Itis a legally binding agreement for sale.In two identical parts, one signed byseller and one by purchaser. When the two parts are exchanged (exchangeof contracts) both parties are committed to the transaction.

DerivativesInstruments derived from securities or physical markets. The most commontypes of derivatives that ordinary investors are likely to come across arefutures , options , warrants and convertible bonds.Beyond this, the range of derivatives possible is only limited by the

imagination of investment banks. In other words, new derivatives are beingcreated all the time. It is likely nowadays that any person who has fundsinvested will unwittingly perhaps be indirectly exposed to derivatives.

Demat trading

Demat trading is trading of shares that are in the electronic form or dematerialised shares.Dematerialisation is the process by which shares in the physical form are cancelled andcredit in the form of electronic balances are maintained on highly secure systems at thedepositoryRolling SettlementThis is the system by which shares are bought, sold and paid for. RollingSettlements is a mechanism of settling trades. in Rolling Settlements, tradesdone on a single day are settled separately from the trades of other day onTrade day + 5 days. As such netting of trades is done only for the day andnot for multiple days. As such, in Rolling Settlement, settlement is carriedout on a daily basis.

Short Sale

A Short sale occurs when a person believing that the prices of shares will fall, sells sharesthat he does not own with the intention of purchasing the shares at lower price at the timedelivery has to be made. This is also known as forward sale.


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stock market report final

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