A Stock exchange or securities market is an organised market where listed
securities are purchased & sold for investment or speculation.
SEBI (Securities & exchange board of India) in 1988
SCRA (Securities contracts (Regulation) Act) in 1956
Types of operators
Brokers:
1. Buys/sells on behalf of outsider
2. Charges Brokerage 3. Not specialize in particular security
Jobbers: (Mumbai stock exchange-Tarawaniwala)
1. Buys/sells on his own behalf
2. Profit from price difference 3. Specializes in one security 4. Not prohibited from selling/buying securities on behalf of others Bulls: (Tejiwala) 1. Expects rise in price 2. Buys securities to sell them in future 3. Conditions when dominated----BULLISH MARKET 4. Bulls liquidation
Bears: (Mandiwala)
1. Expects fall in price
2. Sells securities for future delivery 3. Conditions when dominated----BEARISH MARKET