Stock Exchange
Stock Exchange
Stock Exchange
What is
Stock
Exchange.
NOOR-UL-HADI.
Assistant Professor
CONTENTS OF PRESENTATION:
OVERVIEW OF STOCK EXCHANGE.
Definition.
Features.
DIFFERENCE BETWEEN STOCK MARKET & STOCK EXCHANGE.
TYPES OF STOCK EXCHANGE.
a) National Stock Exchange.
b) Global Stock Exchange.
c) Commodity Stock Exchange.
d) Electronic Stock Exchange.
KEY PLAYERS IN STOCK MARKET.
3
STOCK EXCHANGE:
DEFINITION:
“A marketplace where buyers and
sellers come together to trade shares
of publicly-traded companies”
KEY FEATURES:
oFacilitates capital formation for
businesses.
oProvides a platform for investors
to buy and sell securities.
oContributes to economic growth
and development.
DIFFERENCE BETWEEN STOCK EXCHANGE & STOCK MARKET:
A B
GLOBAL
STOCK
EXCHANGE:
C
COMMODITY
D
NATIONAL Stock ELECTRONIC
STOCK
STOCK exchanges STOCK
EXCHANGE:
EXCHANGE: that facilitate EXCHANGE:
Stock Exchanges These Exchanges use
Stock exchanges cross-border specialize in trading electronic trading plat
that operate within trading of commodities such as forms to facilitate of
a specific country. securities. agriculture products buying and selling of
(For ex; Corn, wheat shares.
EXAMPLES. EXAMPLES. etc),
New York stock LONDON Stock Energy products EXAMPLES.
exchange (NYSE). exchange (For ex; Oil & NASDAQ (U.S).
Shanghai Stock (LSE). Natural Gas).
Exchange (SSE). Tokyo Stock EXAMPLES.
Bombay Stock Exchange Chicago Mercantile
Exchange (BSE). (TSE). Exchanges (CME),
HongKong Intercontinental
Stock Exchange(ICE).
KEY PLAYERS IN STOCK
MARKET:
INVESTORS:
Individual Investors:
The individuals who invest their
own money in the stock market
to make a profit.
Institutional Investors:
These are the investors that
invest on behalf of others such
as pension funds, market funds
& insurance companies.
CLEARING
HOUSE:
A clearing house is an
essential component of
stock market, acting as a
neutral intermediary
between buyers and sellers
to ensure the smooth and
efficient execution of
trades.
It mitigates risk and
promotes market stability.
BROKERS:
A Broker is a person who is
registered in any stock
exchange.
He buys or sells financial
securities on the behalf of
his clients.
He charges Commission
(Commission Brokers).
He have a detailed
information about the market
conditions whether to invest
or not.
JOBBERS:
Jobbers are the
persons or firm who
perform as a market
maker.
They buy and sell
securities on their
own account,
creating market
liquidity through
encouraging the
investor to buy and
sell their order.
REGULATORY
AUTHORITIES.
Government agencies that
oversee stock exchanges
to ensure fair practices
and protect investors
interests.
Examples include The
Securities Exchange
Commission (SEC).
The Securities &
Exchange Board Of India
(SEBI).