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HOW COMPANIES RAISE THE CAPITAL

By Following Mean’s
 Debentures
 Equity
 Loan’s
WHY COMPANIES ISSUE STOCK?
When A Company Would Like To Grow, It Issues Stocks To Raise
Funds And Pay For Ongoing Business Activities
It Is Popular Because:
 The Company Does Not Have To Repay The Money.
 Paying Dividends Is Optional.
 Dividends Are Distributions Of Earnings Paid To Stockholders
WHAT IS A STOCK?
Stock Is A Share In The Ownership Of A Company.
It Represents A Claim On The Company's Assets And Earnings

Whether You Say Shares, Equity Or Stock, It All Means The Same
Thing.
TYPES OF SHARE
Four types of share’s

 Ordinary
 Preference
 Cumulative preference
 Redeemable
WHAT IS A STOCK MARKET?
Place Where Business Of Buying And Selling Stock Takes Place

The Stock Market Is Not A Specific Place, Though Some People Use The Term "Dalaal
Street”
MARKET SEGMENTS

Primary Market
-Channel For Creation Of New Securities

Secondary Market
-The New Securities Issued In The Primary
Market Are Traded The Secondary Market
STOCK EXCHANGE WORLD WIDE
New York Stock Exchange - United States
NASDAQ (National Association of Security Dealers Automated
Quotations) - United States
Shanghai Stock Exchange - China
London Stock Exchange - UK
STOCK EXCHANGE IN INDIA

The Bombay Stock Exchange (BSE)


National Stock Exchange of India Ltd (NSE)
BOMBAY STOCK EXCHANGE (BSE)
 Following Is The Timeline On The Rise
And Rise Of The Sensex Through Indian
Stock Market History.

 1830's Business On Corporate Stocks


And Shares In Bank And Cotton Presses
Started In Bombay.

 1860-1865 Cotton Price Bubble As A


Result Of The American Civil War

 1870 - 90's Sharp Increase In Share


Prices Of Jute Industries Followed By A
Boom In Tea Stocks And Coal

 1978-79 Base Year Of Sensex, Defined To


Be 100.
NATIONAL STOCK EXCHANGE (NIFTY)

November 1992 As A Tax-


paying Company
In April 1993, It Was
Recognized As A Stock
Exchange.
INDEX
Sensex

 Sensex Is An Index, An Index Is Basically An Indicator.

 It Gives You A General Idea About Whether Most Of The


Stocks Have Gone Up Or Most Of The Stocks Have Gone
Down. The Sensex Is An Indicator Of All The Prices Of The
Major Companies Of The Bse(bombay Stock Exchange)

 It Includes 30 Companies
NIFTY(NIFTY FIFTY)

 Nifty Is An Indicator Of All The Major Companies Of


Nse.

 The Nifty Index Is A Composite Of The Top 50 Stocks


Listed On The National Stock Exchange. It Is A
Simplified Tool Which Helps Investors & Ordinary
People Alike, Understand What Happens In The Stock
Market & By Extension, The Economy.
MARKET TIMINGS
Trading On The Equities Segment Takes Place On All Days Of
The Week (Except Saturdays And Sundays And Holidays
Declared By The Exchange In Advance)

The Market Timings Of The Equities Segment Are:


Normal Market Open : 09:55 Hours
Normal Market Close : 15:30 Hours
The Closing Session Is Held Between 15.50 Hours And
16.00 Hours In NSE And 15.40 Hours And 16.00 Hours In
BSE
TRADING ON BSE AND NSE
BSE And NSE Provide Trading Facility On
Two Segments ,Which Are
- Cash Segment And
- Derivative Segment
NSE Also Has Another Segment Called WDM,
Wholesale Debt Market.
NEAT- CASH
NEAT-F&O
CIRCUIT BREAKERS

An Index Based Market-wide Circuit Breaker System Applies At Three


Stages Of The Index Movement Either Way At 10%, 15% And 20%.

The Breakers Are Triggered By Movement Of Either S&p Cnx Nifty Or


Sensex, Whichever Is Breached Earlier

As An Additional Measure Of Safety, Individual Scrip-wise Price Bands


Has Been Fixed As Below:
Daily Price Bands Of 2% (Either Way) On A Set Of Specified Securities
Daily Price Bands Of 5% (Either Way) On A Set Of Specified Securities
Daily Price Bands Of 10% (Either Way) On Another Set Of Specified
Securities
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

SEBI Is The Regulator For The Securities


Market In India.
Originally Set Up By The Government Of India
In 1988, It Acquired Statutory Form In 1992.
FUNCTIONS AND RESPONSIBILITIES
(SEBI)
SEBI has to be responsive to the needs of three groups, which constitute the market:
 The Issuers Of Securities
 The Investors
 The Market Intermediaries.
ISSUES

The way to invite share capital from the public is through a PUBLIC ISSUE
TYPES OF ISSUES
ISSUES

Rights Preferential
Public

IPO

FPO Offer for sale


Fresh Issues
HOW TO START?

Open Demat A/c.


Open Trading A/c.
HOW THE MARKET WORK
NSE

Broker

Broker

Public Public