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 ?
y 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
y Owning a stock or a share means you are a partial
owner of the company, and you get voting rights in certain company issues y 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 y Investments in stocks can generate returns through dividends.
How does one trade in shares ?
y Every transaction in the stock exchange is carried out through licensed members called BROKERS . y 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. y 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 .
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
LONDON BSE
INDIA
NSE
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.
Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups
BSE has tied up with U.S. Futures Exchange (USFE) for U.S. dollar-denominated futures trading of SENSEX in the U.S. The tie-up enables eligible U.S. investors to directly participate in India's equity markets for the first time, without requiring American Depository Receipt .
BSE company list
y y y y y y y y y y y y y y y y y y y y y y y
ABAN OFFSHO ABB LTD ACC LTD ADANI ENTER ADI BIR NUVO AKRUTI CITY ALLAHABAD BK ALSTOM PROJE AMBUJA CEME ANDHRA BANK APOLLO HOS E AREVA ASHOK LEYLND ASIAN PAINTS AXIS BANK A K CAPITAL A V COTTEX I AAREY DRUGS AARTI DRUGS AARTI INDUS AARVEE DEN E ABBOTT INDIA ABC PAPER) STBR
y y y y y y y y y y y y y y y y y y y y y y y y y
ABG INFRALOG ABG SHIPYARD ABHI CORP LT ABHINAV CAP ABIRAMI FIN. ABM KNOWLEDG ACCEL FRONTL ACCEL TRANS ACCURA EXPOR ACCURATE TR ACE INDIA LT ACE SOFT EXP D-LINK INDIA DAAWAT DAIKAF CHEMI DALAL ST INV DALMI INDUST DALMIA CEM B DARSHAN OILS DATA INF TEL DATA SOF AP S DATABASE FIN DATAM TECH DATANET SYST DAULDAWOO MOT I
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: y Equity y Futures and Options y Retail Debt Market y Wholesale Debt Market y Currency futures
N S E company list
y y y y y y y y y y y y y y y y y y y y y y y y y
Pharmacia Healthcare Limited Ador Welding Ltd Aegis Logistics Ltd. Bayer Cropscience India Limited Agro Dutch Industries Ltd Alstom Projects India Ltd Hitachi Home and Life Solutions (India) Ltd The Andhra Pradesh Paper Mills Ltd. Shiva Texyarn Ltd. Aptech Limited Archies Limited Asahi India Glass Limited ABB Ltd. Ashima Limited AstraZeneca Pharma India Ltd Atcom Technologies Ltd. Atlas Cycles (Haryana) Ltd Balurghat Technologies Ltd Rayban Sun Optics Ltd. 3M India LimitedB S Refrigerators Ltd BSEL Infrastructure Realty Limited Reliance Energy Limited Graphite India Limited CFL Capital Financial Services Ltd Cinevistaas Limited
y y y y y y y y y y y y y y y y y y y y y y y y
DIC India Limited Digital GlobalSoft Ltd. Origin Agrostar Ltd. Emco Ltd. Essel Propack Ltd. Fag Bearings India Ltd. FCI OEN Connectors Ltd Zensar Technologies Ltd GAIL (India) Ltd Baba ArtsAlstom Ltd Williamson Tea Assam Ltd. Mahindra Gesco Developers Limited GlaxoSmithKline Pharmaceuticals Ltd. GTL Ltd. Greaves Cotton Limited GHCL LimitedSchenectady Herdillia Limited Hinduja TMT Ltd Micro Inks Ltd. Aventis Pharma Ltd Tata Teleservices (Maharashtra) Ltd. IL&FS Investment Managers Limited Gillette India Ltd Industrial Development Bank of India Limited ICES Software Ltd.
Securities And Exchange Board Of India. {SEBI}
y ESTABLISHMENT OF SEBI y 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.
y PREAMBLE y The Preamble of the Securities and Exchange Board of India describes
the basic functions of the Securities and Exchange Board of India as
y
..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
Functions and Responsibilities SEBI has to be responsive to the needs of three groups, which constitute the market: the issuers of securities the investors the market intermediaries. SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal which is a three member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court. SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 basis). SEBI has been active in setting up the regulations as required under law.
Effect of fluctuation on Indian stock market
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.
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 ³ 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, floatadjusted price, and equal weight.
doc_723029084.pptx
What Are Active Shares ?
y 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
y Owning a stock or a share means you are a partial
owner of the company, and you get voting rights in certain company issues y 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 y Investments in stocks can generate returns through dividends.
How does one trade in shares ?
y Every transaction in the stock exchange is carried out through licensed members called BROKERS . y 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. y 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 .
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
LONDON BSE
INDIA
NSE
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.
Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups
BSE has tied up with U.S. Futures Exchange (USFE) for U.S. dollar-denominated futures trading of SENSEX in the U.S. The tie-up enables eligible U.S. investors to directly participate in India's equity markets for the first time, without requiring American Depository Receipt .
BSE company list
y y y y y y y y y y y y y y y y y y y y y y y
ABAN OFFSHO ABB LTD ACC LTD ADANI ENTER ADI BIR NUVO AKRUTI CITY ALLAHABAD BK ALSTOM PROJE AMBUJA CEME ANDHRA BANK APOLLO HOS E AREVA ASHOK LEYLND ASIAN PAINTS AXIS BANK A K CAPITAL A V COTTEX I AAREY DRUGS AARTI DRUGS AARTI INDUS AARVEE DEN E ABBOTT INDIA ABC PAPER) STBR
y y y y y y y y y y y y y y y y y y y y y y y y y
ABG INFRALOG ABG SHIPYARD ABHI CORP LT ABHINAV CAP ABIRAMI FIN. ABM KNOWLEDG ACCEL FRONTL ACCEL TRANS ACCURA EXPOR ACCURATE TR ACE INDIA LT ACE SOFT EXP D-LINK INDIA DAAWAT DAIKAF CHEMI DALAL ST INV DALMI INDUST DALMIA CEM B DARSHAN OILS DATA INF TEL DATA SOF AP S DATABASE FIN DATAM TECH DATANET SYST DAULDAWOO MOT I
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: y Equity y Futures and Options y Retail Debt Market y Wholesale Debt Market y Currency futures
N S E company list
y y y y y y y y y y y y y y y y y y y y y y y y y
Pharmacia Healthcare Limited Ador Welding Ltd Aegis Logistics Ltd. Bayer Cropscience India Limited Agro Dutch Industries Ltd Alstom Projects India Ltd Hitachi Home and Life Solutions (India) Ltd The Andhra Pradesh Paper Mills Ltd. Shiva Texyarn Ltd. Aptech Limited Archies Limited Asahi India Glass Limited ABB Ltd. Ashima Limited AstraZeneca Pharma India Ltd Atcom Technologies Ltd. Atlas Cycles (Haryana) Ltd Balurghat Technologies Ltd Rayban Sun Optics Ltd. 3M India LimitedB S Refrigerators Ltd BSEL Infrastructure Realty Limited Reliance Energy Limited Graphite India Limited CFL Capital Financial Services Ltd Cinevistaas Limited
y y y y y y y y y y y y y y y y y y y y y y y y
DIC India Limited Digital GlobalSoft Ltd. Origin Agrostar Ltd. Emco Ltd. Essel Propack Ltd. Fag Bearings India Ltd. FCI OEN Connectors Ltd Zensar Technologies Ltd GAIL (India) Ltd Baba ArtsAlstom Ltd Williamson Tea Assam Ltd. Mahindra Gesco Developers Limited GlaxoSmithKline Pharmaceuticals Ltd. GTL Ltd. Greaves Cotton Limited GHCL LimitedSchenectady Herdillia Limited Hinduja TMT Ltd Micro Inks Ltd. Aventis Pharma Ltd Tata Teleservices (Maharashtra) Ltd. IL&FS Investment Managers Limited Gillette India Ltd Industrial Development Bank of India Limited ICES Software Ltd.
Securities And Exchange Board Of India. {SEBI}
y ESTABLISHMENT OF SEBI y 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.
y PREAMBLE y The Preamble of the Securities and Exchange Board of India describes
the basic functions of the Securities and Exchange Board of India as
y
..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
Functions and Responsibilities SEBI has to be responsive to the needs of three groups, which constitute the market: the issuers of securities the investors the market intermediaries. SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal which is a three member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court. SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 basis). SEBI has been active in setting up the regulations as required under law.
Effect of fluctuation on Indian stock market
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.
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 ³ 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, floatadjusted price, and equal weight.
doc_723029084.pptx