Stock market basic
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The document provides an overview of the stock market in India, including what shares are, how stock exchanges work, and some of the major indices. It discusses that shares represent ownership in a company and are traded on stock exchanges. It then describes the two major stock exchanges in India - the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It provides details on two major indices, the BSE Sensex which tracks 30 large companies on the BSE, and the Nifty 50 which tracks 50 large companies on the NSE. It concludes with a brief overview of the Securities and Exchange Board of India (SEBI) which regulates stock exchanges in India.
Stock market basic
- 1. What Is It ???? Stock Market Story to Glory
- 2. What is Share? Sharing of Ownership Happens and Hence it is Known As Share Market Let us consider for Example: To Start A Business you need Rs.1,00,000 Personally You Have = Rs.50,000 From Bank Loans = Rs.20,000 Still you need 30,000 for running Business Rs.30,000 can be attained by approaching the Interested persons. By the Received Amount you can start a Business and Earn Profit. The Profit will be shared to investor based on Investment Proportion
- 3. The Person who holds ownership (owns Share or Part of the Business)is known to be share holder In previous case The Persons who contributed for Rs.30,000 will be my Share Holder Usually you wont prefer others to hold Maximum share (Maximum amount) in your Company To be a owner of a company, You Have to own More than 50% shares of the Total volume. For Ex : Total Value of Business = Rs.100,You Prefer to have At least Rs.51.To possess Control of the Business. To Enter into a Stock Market ,Companies must satisfy regulatory Norms of the Government Board.
- 4. Stock Exchange – Story to glory Stock Market is an organized market, where securities (shares) of govt. and semi govt. bodies and corporate enterprises or bought and sold. In the Stock Market only those securities which are listed in the Stock Market or transacted. “ The Purpose is for assisting, regulating and controlling business in buying, selling and dealing in securities (stock)”
- 5. Stock Exchange in India Bombay Stock Exchange National Stock Exchange
- 6. Bombay Stock Exchange BOMBAY STOCK EXCHANGE IS THE OLDEST STOCK EXCHANGE IN ASIA WITH RICH HERITAGE IT SPANS OVER THREE CENTURIES WITH 133 YEARS OF EXISTENCE BSE WAS EXTABLISHED AS “THE NATIVE SHARE AND STOCK BROKERS ASSOCIATION” IN 1875 WORLDS NO.1 EXCHANGE IN TERMS OF LISTED COMPANIES ( OVER 4700 LISTED COMPANIES)
- 7. What Is Sensex ? SENSEX IS A VALUE WEIGHTED INDEX COMPOSED OF 30 STOCKS REPRESENTING VARIOUS SECTORS (Average of Shares in various sectors like IT,Infra Structure Etc.) THESE COMPANIES ACCOUNTS FOR ONE FIFTH OF MARKET CAPITALIZATION BASE VALUE OF SENSEX IS 100 ,BASE YEAR 1978-79. (It Means sensex Started its journey form 100 points to 17,000 current Range. Primarily due to growth of India)
- 8. 30 stocks From Companies across Various Sector is Taken into Consideration for Calculating Index Value. The Companies selection is based on the Volume of the Business in the overall Sectoe.For Example : Infosys, Wipro, having a huge Sales Volume in IT sector, Infosys acts as a Representative of IT sector. Similarly Hindustan Uniliver is Taken into account on Behalf of FMCG. FIRST EXCHANGE IN INDIA TO OBTAIN ISO 9001:2000 CERTIFICATION AND FIRST IN COUNTRY TO OBTAIN INFORMATION SECURITY MANAGEMENT SYSTEM STANDARD BS 7799-2-2002 CERTIFICATION NATIONWIDE REACH IN MORE THAN 359 CITIES
- 9. 30 COMPANIES OF SENSEX ACC HDFC BANK ITC ONGC SUN PHARMA AIRTEL HERO HONDA JAIPRAKASH AS RELIANCE TATA MOTORS BHEL HINDALCO L&T REL COMMU TATA POWER DLF HUL MAH N MAH REL INFRA TATA STEEL GRASIM ICICI BANK MARUTI SUZ SBI TCS HDFC INFOSYS NTPC STRELITE WIPRO
- 11. NIFTY 50 IS A VALUE WEIGHTED INDEX COMPOSED OF 50 STOCKS REPRESENTING VARIOUS SECTORS THESE COMPANIES ACCOUNTS FOR 77% of all the trading volume on the NSE and 60% of the total market capitalization. The index started with a base value of 1000 on November 3, 1995 and is calculated using the free float method which takes in account of market capitalization.
- 12. COMPONENTS OF THE NIFTY 50 ABB Dr. Reddy's Hero Honda Larsen & Toubro Power Grid Satyam TCS ACC GAIL India Hindalco MTNL PNB Siemens Tata Motors Ambuja Cements GlaxoSmithKline Pharma HUL Mahindra & Mahindra Ranbaxy Labs State Bank of India Tata Power BPCL Grasim IPCL MARUTI Reliance Comm SAIL Tata Steel Bharti Airtel HCL Techno ICICI Bank National Aluminium Co. Reliance ENERGY Sterlite VSNL BHEL HDFC Infosys NTPC Reliance Ind. Sun Pharma Wipro Cipla HDFC BANK ITC ONGC RPL Suzlon Energy Zee
- 13. SEBI Securities and Exchange Board of India The Government of India set up a body called Securities and Exchange Board of India in April 1988.However,the real beginning of SEBI started in 1992,when the SEBI Act, 1992 was passed and assented by the President of India.
- 14. Objectives of SEBI The main objectives of SEBI are as follows: Objectives towards the Investors .(the Person Who invest) Objectives towards Capital Issuers. ( THE Company ) Objectives towards Intermediaries. ( Banks and Mutual Fund AND Insurance Companies)