The stock market is an aggregation of buyers and sellers of stocks, which represent ownership claims on businesses. A stock market allows investors to trade stock electronically through a demat account, which converts physical shares into an electronic format, and a trading account. There are two main types of shares - equity shares, which represent ownership and risk, and commodity market shares, which represent goods like metals. The largest stock exchanges are the New York Stock Exchange and Bombay Stock Exchange, while benefits of investing include potential higher returns and liquidity, though risks include volatility and ownership risks.
The stock market is an aggregation of buyers and sellers of stocks, which represent ownership claims on businesses. A stock market allows investors to trade stock electronically through a demat account, which converts physical shares into an electronic format, and a trading account. There are two main types of shares - equity shares, which represent ownership and risk, and commodity market shares, which represent goods like metals. The largest stock exchanges are the New York Stock Exchange and Bombay Stock Exchange, while benefits of investing include potential higher returns and liquidity, though risks include volatility and ownership risks.
The stock market is an aggregation of buyers and sellers of stocks, which represent ownership claims on businesses. A stock market allows investors to trade stock electronically through a demat account, which converts physical shares into an electronic format, and a trading account. There are two main types of shares - equity shares, which represent ownership and risk, and commodity market shares, which represent goods like metals. The largest stock exchanges are the New York Stock Exchange and Bombay Stock Exchange, while benefits of investing include potential higher returns and liquidity, though risks include volatility and ownership risks.
The stock market is an aggregation of buyers and sellers of stocks, which represent ownership claims on businesses. A stock market allows investors to trade stock electronically through a demat account, which converts physical shares into an electronic format, and a trading account. There are two main types of shares - equity shares, which represent ownership and risk, and commodity market shares, which represent goods like metals. The largest stock exchanges are the New York Stock Exchange and Bombay Stock Exchange, while benefits of investing include potential higher returns and liquidity, though risks include volatility and ownership risks.
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Stock Market
High loss, High Gain
What is Stock Market? A stock market, equity market or share market is the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately. Examples of the latter include shares of private companies which are sold to investors through equity crowdfunding platforms. Functions of Stock Market
Fair Dealing in Securities Transactions
Efficient Price Discovery Liquidity Maintenance Security and Validity of Transactions Support All Eligible Types of Participants Investor Protection Facilitate transfer of ownership Demat and Trading Account
What is a Demat Account?
Demat is simply an account that allows you to hold your shares in an electronic format. A demat account converts the physical shares into an electronic form, therefore dematerializing it. What is a Trading Account? To conduct your stock trading activities you require a trading account. This is because when a company lists its shares in the stock market you can trade the same on an electronic system through a special account known as a trading account. Types of shares Equity shares Equity shares are also known as ordinary shares. They are the form of fractional or part ownership in which the shareholder, as a fractional owner, takes the maximum business risk. BSE(Bombay Stock Exchange) and NSE(National Stock Exchange) are the two equity exchange of India. Commodity market shares Commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. MCX(Multi Commodity Exchange) and NCDEX (National Commodity And Derivative Exchange) are the two commodity trading exchange of India. Stock Exchanges in the World The oldest stock exchange in the world. Amsterdam Stock Exchange I. Founded: 1602 II. Capitalization: 959,975.345 EUR MN III.Listed Companies: 133 The largest Stock Exchange in the world. New York Stock Exchange I. Founded: 1792 II. Capitalization: $22.9 trillion III.Listed Companies: 2,400 Stock Exchanges In India There are total of 21 stock exchanges in India. Out of them Two largest Stock Exchanges are: Bombay Stock Exchange (BSE) National Stock Exchange (NSE) Bombay Stock Exchanges (BSE) Founded: 1875 Capitalization: US$2.2 trillion No. of listings: 5,439 Index: Sensex Constituents: 30 Sensex: 38,337.01 -560.45(1.44%) National Stock Exchange (NSE) Founded: 1992 Capitalization: US$2.27 trillion No. of listings: 1952 Index: Nifty Constituents: 30 Nifty: 11,419.25 -177.65(1.53%) Benefits Higher Liquidity. Versatility. Higher Returns in Shorter Periods of Time. Acquire Ownership and Right to Vote. Regulatory Environment and Framework. Convenience. Disadvantages Return on Investment High Volatility Not Suitable to Provide Retirement Income Large Number of Choices Risks of Ownership Subject to Higher Risk