STOCK EXCHANGE

0Presented byNeelam kushwaha

SECURITY MARKET 

0Security Market means a place or area where the shares, debenture, bonds of companies, government securities, units and securities issued by financial institutions and other financial assets are sold or purchased. Mainly stock exchanges are known as securities market. The securities market may be divided into:

0Primary market0Secondary market 

PRIMARY MARKET

Primary Market is a market for new issues or new financial claims. Hence, it is also called New Issue Market. The primary market deals with those securities which are issued to the public for first time. In the primary market, borrowers exchange new financial securities for long term funds. Thus, primary market facilitates capital formation. There are three ways by which a company may raise capital in a primary market. They are:-• Public issue• Right issue• Private placement

SECONDARY MARKET:Secondary Market is a market for secondary sale of securities. In other words, securities which have already passed through the new issue market are traded in the Market. Generally, such securities are quoted in the stock exchange and it provides a continuous and regular market for buying and selling of securities. This market consists of all stock exchanges recognized by government of India.The Secondary Market provides ready marketability to the investors, which in turn results in improved liquidity to investors without requiring them to hold the securities indefinitely

STOCK EXCHANGE 

Stock market which are also called as stock exchanges exist to facilitate purchase and sale of securities or bonds issued by the companies and Government. Any body of individual, whether incorporated or not, constituted for the purpose of regulating or controlling the business of buying, selling or dealing in securities is called stock exchange. There are 24 stock exchanges today in India. Stock exchanges are an integral part of a nation’s economic life

According to securities contract (regulation) act, 1956, “Stock Exchange means any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities”.

SOME QUESTION ABOUT INVESTMENT:-

What's the difference between saving and investing?

Should I be investing in the stock market?

What is the next step after investment?

ACCOUNTS

POOL ACCOUNTIt is the account of the broker who sell the stock that stock taken by the buyer and keep in the demat account. All clients demat account is kept in pool account.

DEMAT ACCOUNT/ DP/ DEPOSITORY ACCOUNT

DEPOSITORY ACCOUNT

DP-ID CLIENT-ID

Demat account is an account wherein you can hold shares of various companies in the dematerialised {electronic} form. You can open a Demat account with a share brokerage or a bank. You should necessarily have a PAN card for opening such an account

Documents needed for opening Demat account?PAN CARDONE PHOTOGRAPH FOR INDIVIDUAL, FOR JOINTLY-NOMINEE’S PHOTOADDRESS PROOFID PROOFCANCEL CHEQUE PREFERABLY MICRBANK STATEMENTADDITIONAL PROOF (ELECTRICITY BILL, TELEPHONE BILL, LICENSE, RASAN CARD)AMOUNT CHEQUE. When all document given client/ buyer/ holder receive two copy of CMR (client master report). One copy for client and another for company. Standard charges for opening demat account Opening charges Rs 250AMC (Annual Maintenance Charges) Rs 300  

• Bombay Stock Exchange is the oldest stock exchange in Asia What is now popularly known as the BSE was established as "The Native Share & Stock Brokers' Association" in 1875.

• The companies listed on BSE command a total market capitalization of USD Trillion 1.28 as of Feb, 2010.

• BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certifications.

• It is also the first Exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-Line trading System (BOLT).

• The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index.

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. It recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.

 Commodity trading means trading in commodity derivatives . Trading futures of commodities like natural gas, aluminum, zinc, crude oil, gold, silver, agricultural commodities etc. Commodity derivatives are traded at the commodity exchanges.

COMMODITY

COMMODITY TRAND

NCDEX MCX

PRODUCTSBullions Metals Energy Oil & Oil

SeedsOther

Gold Aluminium ATF Crude Palm Oil

Almond

Gold Guinea Copper Crude Oil Kapasia Khalli Mentha Oil

Gold HNI Lead Gasoline Refined Soya Oil Pulses

Platinum Nickel Heating Oil

Soya Bean Fiber

Silver Tin, Zinc Natural Gas

Spices

Silver M Zinc Mini

BSEMARKET WATCH

BUY ORDER

NSEMARKET WATCH

TYPES OF TRADING

Intra-day Trader

The stock or futures day trader is someone who is buying and selling intraday. They tend to do this with frequency throughout the day. A day trader attempts to take advantage of price swings within a day. Day trading is the most rewarding in very short time (in few minutes to few hours). But in intraday trading one has to be very fast and quick.Day traders are not interested in the fundamental or intrinsic value of stocks, but in price fluctuations during market hours. Day trader’s goal is to make money by capturing the quick moves in very short time.

Important rules to follow as an Intra-day Trader

*Be with current market trend

* Always place a stop-loss.

* Shift trailing stop loss to breakeven to run the profit.

Future and Option Trading

Futures contract is a financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash. The futures markets are characterized by the ability to use very high leverage relative to stock markets.

Types of Option contract: 

Call A call option conveys to the option buyer the right to purchase a particular futures contract at a stated price at any time during the life of the option.

PutIf the price remains above strike price, premium will erode as time decay and at expiry, premium will become zero. So maximum loss is limited to premium only.A put option conveys to the option buyer the right to sell a particular futures contract at a stated price at any time during the life of the option.