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(Stock exchange)
Meaning:
Stock exchange is a place where any body who wants to buy a
particular “security” can find an immediate seller or any body
who wants to sell his holdings can find a buyer at a reasonable
and fair place.
The Stock Market does not provide this facility to corporation and
partnership firms.
In the Stock Market only those securities which are listed in the Stock
Market or transacted.
Disseminates information
Facilitates speculation
S/E : After, the Board decides upon accepting his application, a membership
Card is issued to the applicant.
Methods of Trading:
A person who wants to purchase or
sell Securities cannot do it himself.
He is not allowed to enter into the
hall of the Stock exchange and thus
he can not carry a transaction
personally.
There are some important points of distinction between R.D.C & F.D.C
The R.D.C are settled either on the date of the transaction or with in
14days from the date of contract.
The R.D.C must be settled with in the specified time limit where as
the forward contracts can be carried forward to the next settlement
day.
Trading Procedure:
It is of four types
Choice of a Broker
Settlement Transaction
Bull
Bear
Lame Duck
Stag
Bull:
A Bull is Speculator who excepts a rise
in the price of shares of a company.
He is an optimist.
He aims at making profit out of
expected rise in the price of a particular
share.
For this purpose he purchases the
security for future delivery.
Bear:
A Bear is Speculator who expects a
fall in the price of a Security
He is pessimist
He aims at making profit out of an
expected fall in the price of a
particular share
For this purpose he sell the security
for future delivery
Lame Duck:
TypeStock Exchange
LocationMumbai, India
Coordinates19°3′37″N 72°51′35″E19.06028°N 72.85972°E
Founded1992
OwnerNational Stock Exchange of India Limited
Key peopleMr.RAVI NARAIN Managing Director
CurrencyINR
No. of listings1587
MarketCapRs 47,01,923 crore(2009 August)
IndexesS&P CNX Nifty
CNX Nifty Junior
S&P CNX 500
Websitehttp://www.nse-india.com/
Bombay Stock exchange
LocationMumbai, India
Founded1875
CurrencyINR
No. of listings4,700
IndexesBSE Sensex
Websitehttp://www.bseindia.com/