1. Stock Market1.1 Stock Plain and simple, a stock is a share in the ownership of a company. A stock represents a claim on the company's assets and earnings. As you acquire more stocks, your ownership stake in the company becomes greater. (Note: Sometimes different words like shares, equity, stocks etc. are used. All these words mean the same thing.)

1.2 Share MarketA Share market or Stock market, is a private or public market for the trading of companystock and derivatives of company stock at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

The stocks are listed and traded on stock exchanges which are entities a corporation or mutual organization specialized in the business of bringing buyers and sellers of the organizations to a listing of stocks and securities together.Stock market is known as the cradle of capitalism. It is a place where companies come to raise their share capital and investors go to invest their surplus funds. Stock market essentially discharges the functions of "the invisible hand" that channels investment into the most productive ventures so as to optimize the overall productivity of the economy. Stock Market is a place where financial instruments like shares, debentures, commercial papers, bonds etc. are bought and sold. Stock markets are popularly known as stock exchanges. There are many popular stock markets in the world. NASDQ, Tokyo Stock Exchange, London Stock Exchange are the most popular of the lot. There are many participants in a stock market. Investors, Speculators, Arbitrators, Traders are different type of participants of a Stock Market Brokers are intermediaries who bring together various participants in a Stock Market.Shares in the Share Market are either traded through:-(a) Stock Exchange(b) Over-the -Counter (OTC)(a) Stock ExchangeThese are organized market places where stocks, bonds are other equivalents are traded between the buyers and sellers where exchange acts as counter-party to both the participants in case of any default. The contracts are standardized and not customized ones. For example, NYSE, NASDAQ, NSE, NIKKEI, etc.

(b) Over-the -Counter (OTC)These are not centralized exchanges. Here, the trade takes place through a network of dealers. Generally, the OTC contracts are bilateral customized contracts and not standardized ones. Important Participants of Share Market Trading are :-Buyer An investor who buys a script in the belief that the market will rise. If his hinge becomes right then he makes profit otherwise he suffers loss. Seller of a stock sells in the hope that the stock price will go down. Stock Broker Brokers are persons or firms who execute buy/sell order on behalf of the investors and charge a commission for rendering the service.

Share Trading are done in three ways:-(a) Offline Share Trading(b) Online Share Trading(c) Open Outcry Trading

(a) Offline Share TradingIn this form of trading the customer either goes to the share broker's place and sits before the share trading terminal and asks the dealer to place orders in his account. or rings the share broker, asks the share quotes and other relevant informations, and accordingly places orders over the phone.

(b) Online Share TradingThe client could avail the share market and could place his order on his own from any place he wants, provided he has a computer with an Internet connection. (c) Open Outcry Trading Here, the investors put their orders through the brokers and these share brokers in turn place and execute orders on behalf of them on the floor of the exchange. These brokers gather in a particular place on the trading floor known as Trading Post. There is a person called as the Specialist present in the trading post who does the matching of the buy and sell orders. This type of auction method is called Open Outcry Method.2. Online Share TradingOnline Share Trading is becoming the order of the day in share trading. Now-a-days one could hardly see a person going to the stock exchange floor and placing his order. Electronic media has played an important role in flourishing the share market. In case of online share trading an investor could place his order from his own house if he has internet connection.

There are two types of trading that can be done through online share trading1. Intra-day Trading 2. Delivery Trading2.1 Intra-day Trading They enter and exit out of the market like the thief in the night. Traders continuously have a watch on the market during the trading hours and the moment they see any opportunity arising they pounce on it for scalping the profit out. These types of trading generally are risky in nature. They buy and sell stocks during the same day. Intraday Traders are of two types:- a. Scalp Traders b. Momentum Tradersa. Scalp Traders :Investors who perform many trades per day for scalping out small profits out of the bid-ask spread from each trade are known as scalp traders. b. Momentum Traders :Investors who pounce on those stocks which move significantly in one direction and book desired profit are called momentum traders. They do this within a day.

2.2 Delivery trading :The investor buys the share for holding purposes. The brokerage charges are a bit more than the intraday ones. Delivery Traders are :a.Technical Traders b. Fundamental Tradersc. Swing Traders

a. Technical Traders :They believe that buying/selling signals are present within the graphs and charts of the stock. b. Fundamental Traders :They perform trade on the basis of study of fact-sheets of the company like historical profit graph, balance sheet, anticipated earning reports, stock splits, mergers and acquisitions, etc. c. Swing Traders They are basically fundamental traders who take delivery of trades for a span of short period generally more than one day. In this electronic form of trading, the shares are not in the physical form for their inconvenience to handle. So, they are now converted to dematerialized form . So, one investor does not have to worry about the safety of the physical shares because the bought shares get transferred to the respective D-mat account. Thus, online share trading has helped the investors a lot as it is hassle-free and time efficient.For the intraday traders the brokerage costing is minuscule in comparison to the delivery trades.

STOCK EXCHANGEWhat is Stock Exchange?Definition of Stock Exchange: The securities regulations act of 1956 defined stock exchange as an association, organisation, or an individual which is established for the purpose of assisting, regulating, and controlling business in buying, selling and dealing and dealing in securities.Meaning: This comes under treasury sector, which provides service to stock brokers & traders to trade stocks, bonds and securities. A stock exchange helps the companies to raise their fund. Therefore the companies needs to list themselves in the stock Exchange and the shares will be issued which is known as equity or a ordinary share and these shareholders are the real owners of the Board of Directors of the Company are elected out of these Equity Shareholders only.FEATURES OF STOCK EXCHANGE It is an organised market. It is a securities market. It is an important constituent of capital market i.e. market for long term finance It is a voluntary association of person desirous of dealing in securities. In a Stock Exchange, only the members can deal in i.e. buy and sell securities The members of a stock exchange can buy and sell securities as brokers for & on behalf of their clients. The dealings in a stock exchange are under certain accepted code of conduct i.e. rules and regulations

IMPORTANT FUNCTION OF STOCK EXCHANGE Provide central and convenient meeting places for sellers and buyers of securities Increase the marketability and liquidity of prices of securities Contribute to stability of prices of securities Equalization of price of securities Smoothen price movement Help the investor to know the worth of their holdings Promote the habit of saving and investment Help capital formation help companies and government to raise funds from the investors Provide forecasting service

HISTORY OF STOCK EXCHANGEThe Stock Exchange was established by East India Company in 18th century. In India it was established in 1850 with 22 stock brokers opposite to town hall of Bombay. This stock exchange is known as oldest exchange of Asia.

BROKER AND JOBBER BROKER: He is one act as aintermediary on behalf of others. A broker in a stock exchange is a commission agent who transacts business in securities on behalf of non-members. JOBBER: He is not allowed to deal with the public directly .He deals with brokers who are engaged with the investors. Thus, the securities are bought by the jobber from members and sells to members who are operating on the stock exchange as broker. SPECULATION AND SPECULATOR SPECULATION: It is the transaction of members to buy or sell securities on stock exchange with a view to make profits to anticipated raise or fall in price of securities. SPECULATOR: The dealer in stock exchange who indulge in speculation are called speculator. They do not take delivery of securities purchased or sold by them, but only pay or rescue the difference between the purchase price and sale price. The different types of speculators are BULL BEAR STAG LAME DUCK

BULL (TEJIWALA)He is speculator who expects the future raise in price of securities he buys the securities to sell them at future date at the higher price. He is called as bull because his activities resembles as a bull, as the bull tends to throw its victims up in the air through its horns. In simple the bull speculator tries to raise the price of securities by placing a big purchase orders.

BEAR {MANDIWALA}He is speculator who expects future fall in prices; he does an agreement to sell securities at future date at the present market rate. He is called as bear because his altitude resembles with bear, as the bear tends to stamp its victims down to earth through its paws. In simple the bear speculator forces of prices of securities to fall through his activities.

STAG {DEER} He operates in new issue of market. He is just like a bull speculator. He applies large number of shares in the issue market only by paying, application money, and allotment money. He is not a genuine investor because; he sells the allotted securities at the premium and makes profit. In simple he is cautious in his dealings. He creates an artificial rise in prices of new shares and makes profits.

LAME DUCKHe is speculator when the bear operator finds it difficult to deliver the securities to the consumer on a particular day as agreed upon, he struggles as a lame duck in fulfilling his commitment. This happens when the prices do not fall as expected by the bear and the other party is not willing to postpone the settlement to the next period.

Largest stock exchanges

IN THE WORLD

LONDON STOCK EXCHANGE NEW YORK STOCK EXCHANGE SHANHAI STOCK EXCHANGE AUSTRALIA STOCK EXCHANGE TOKYO STOCK EXCHANGE HONG KONG STOCK EXCHANGE TORONTO STOCK EXCHANGE DEUTSCHE BORSE BM&F BOVESPA NASDAQ OMX STOCK EXCHANGE

IN INDIA

List of Stock Exchange in India

Sr. No.Name of the ExchangeValid Upto

1Ahmedabad Stock Exchange Ltd.

Address: Kamdhenu Complex Opp, Sahajanand College, Panjarapole, Ambawadi, Ahmedabad - 380001PERMANENT

2BSE Ltd.

Address: P J Tower, Dalal Street, Mumbai 400023PERMANENT

3Bangalore Stock Exchange Ltd.

Address: Stock Exchange Towers, 51, 1st Cross, J C Road, Bangalore - 560027PERMANENT

4Bhubaneswar Stock Exchange Ltd

Address: Stock Exchange Bhavan, P- 2, Jayadev Vihar, P. O. - Chandrasekharpur, Bhubaneswar - 75102304-JUN-2014

5Calcutta Stock Exchange Ltd.

Address: 7, Lyons Range, Kolkata - 700001PERMANENT

6Cochin Stock Exchange Ltd

Address: MES Dr P. K. Abdul Gafoor Memorial Cultural Complex, 36/1565, 4th Floor, Judges Avenue, Kaloor, Cochin 682017

07-NOV-2013

7Delhi Stock Exchange Ltd.,The

Address: DSE House, 3/1, Asaf Ali Road, New Delhi - 110002PERMANENT

8Gauhati Stock Exchange Ltd.,The

Address: Saraf Building Annexe, A T Road, Gauhati - 78100130-APR-2013

9Inter-Connected Stock Exchange of India Limited

Address: International Infotech Park, Tower 7, 5th Floor, Sector 30, Vashi, Navi Mumbai - 40070317-NOV-2013

10Jaipur Stock Exchange Ltd

Address: Stock Exchange Building, JLN Marg, Malviya Nagar, Jaipur - 30201708-JAN-2014

11Ludhiana Stock Exchange Ltd.,The

Address: Feroze Gandhi Market, Ludhiana - 14100127-APR-2014

12MCX SX Exchange Limited

Address: 102A Land Mark, SurenRoad,Chakala,Andheri (East), Mumbai - 40009315-SEP-2014

13Madhya Pradesh Stock Exchange Ltd

Address: Palika Plaza, Phase II, 201, 2nd Floor, MTH Compound, Indore - 452001PERMANENT

14Madras Stock Exchange Ltd.

Address: P O Box no 183, New No: 30 (old No: 11) Second Line Beach, Chennai - 600001PERMANENT

15Magadh Stock Exchange Ltd.

"SEBI vide order dated September 3, 2007 refused to renew the recognition granted to Magadh Stock Exchange Ltd."

16Mangalore Stock Exchange

As per Securities Appellete Tribunal order dated October 4, 2006, the Mangalore Stock Exchange is a de-recognized Stock Exchange under Section 4 (4) of SCRA

17National Stock Exchange of India Ltd.

Address: BandraKurla Complex, Bandra (East) Mumbai 400051PERMANENT

18OTC Exchange of India

Address: 92, Maker Towers 'F', Cuffe Parade, Mumbai - 40000522-AUG-2014

19Pune Stock Exchange Ltd.

Address: Shivleela Chambers, 752, SadashivPeth, RB KumthekarMarg Pune - 41103001-SEP-2014

20The Vadodara Stock Exchange Ltd.

Address: Fortune Tower, Sayajigunj, Vadodara - 39000503-JAN-2014

21U.P. Stock Exchange Limited

Address: Padam Towers, 14/113, Civil Lines, Kanpur - 20800102-JUN-2014

22United Stock Exchange of India Limited

Address: 25th Floor, Phirozejeejeebhoy Towers, Dalal Street, Fort, Mumbai - 40000121-MAR-2014

BOMBAY STOCK EXCHANGE

It is oldest and first stock exchange of India established in the year 1875. First it was started under banyan tree opposite to town hall of Bombay over 22 stock brokers. The top gainer in BSE is 100 companies in that GMR infra is first.

Evolution of the Bombay Stock Exchange and its Size The Bombay Stock Exchange was established in 1875 as the Native Share and Stock Brokers Association in 1875. It earned a formal status under the Securities and Exchange Board of India (SEBI) in 1956. Market Capitalization of the BSE was about Rs 33.4 trillion as on 2006, October. The Bombay Stock Exchange uses the Bombay Stock Exchange Sensex as the market index in Asia and India. The Bombay Stock Exchange deals with trading in derivatives, equity and other debt instruments. The Bombay Stock Exchange Limited has the greatest number of listed companies in the world, with 4700 listed as of August 2007. It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the tenth largest in the world. The Bombay Stock Exchange was established in 1875. Around 6,000 Indian companies list on the stock exchange, and it has a significant trading volume. The BSE SENSEX (Sensitive index), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India.

NATIONAL STOCK EXCHANGE OF INDIA(NSE OR NSEI)In the year 1991 Pherwani Committee recommended to establish National Stock Exchange (NSE) in India. In 1992 the Government of India authorized IDBI for establishing this exchange. In National Stock Exchange there is trading of equity shares, bonds and government securities. India's Stock Exchanges particularly National Stock Exchange has achieved world standards in the recent years. The NSE India ranked its 3rd position since last four years in terms of total number of trading per calendar year.

Presently there are 24 stock exchanges in India, out of which 20 have exchanges National Stock Exchange (NSE), over the Counter Exchange of India Ltd, (OTCEI) and Inter-connected Stock Exchange of India limited (ISE) have nationwide trading facilities.The NSE of India is the leading stock exchange of India, covering 370 cities and towns in the country. It was established in1994 as a TAX company. It was established by 21 leading financial institutions and banks like the IDBI, ICICI, IFCI, LIC, SBI, etc.

The National Stock Exchange of India Limited or S&P CNX NIFTY (NSE) is a Mumbai-based stock exchange. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading... Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the Nifty, an index of fifty major stocks weighted by market capitalisation.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities. There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India. In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities. It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.

5.1 OriginsThe National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market(Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.

5.2 NSE has the following major segments of the capital market:(a) Equity (b) Futures and Options (c) Retail Debt Market (d) Wholesale Debt Market (e) Currency futures

5.3 Working HoursNSE's normal trading sessions are from 09:55am to 03:30pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.

Features of NSEI

Nationwide coverage i.e., investors from all over country Ringless i.e., it has no ring or trading floor Screen-based trading i.e., trading in this stock exchange is done electronically. Transparency, i.e., the use of computer screen for trading makes the dealings in securities transparent. Professionalization in trading, i.e., it brings professionalism in its functions

OVER-THE-COUNTER EXCHANGE OF INDIA(OTCEI

The OTCEI is a national,ringless and computerized stock exchange. It was established in October, 1990.it started its operation in September, 1992.Features of OTCEIIt is a nation-wide stock exchange. Its operational areas cover entire India.It is a ringless stock exchange. The trading ring (i.e., trading place) commonly found in a traditional stock exchange is not found in the OTCEI.It is a computerized stock exchangeAdvantages of OTCEI1. It helps the investors to have easy and direct access to the stock exchange2. It helps investors to get fair prices for their securities3. It provide safety to the investors4. To provide computerized trading system5. To provide investors a convenient,effcient and transparent mode of investment

1 IntroductionSEBI 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 with SEBI Act 1992 being passed by the Indian Parliament. Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai, and has Northern, Eastern and Southern regional offices in New Delhi, Kolkata and Chennai. It is in the news that a new Western Regional Office has been proposed at Ahmedabad.3. Securities and Exchange Board of India

The SEBI was constituted on 12th April,1988 under a resolution of the Government of India. On 31st January, 1992, it was made a statutory body by the Securities and Exchange board of India Act, 1992.The Companies (Amendment) Act, 2000 has given certain powers to SEBI as regards the issues and transfer of securities and non-payment of dividend3.2 Function of SEBISEBI has to be responsive to the needs of three groups, which constitute the market: The issuers of securities The investors The market intermediaries.

SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal which is a three member tribunal and is presently headed by a former Chief Justice of a High court - Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court.SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively (e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T+2 bases). SEBI has been active in setting up the regulations as required under law.

Function Of SEBIRegulating the business in stock exchange and any other securities markets.Promoting and regulating self-regulatory organization.Registering and regulating the work of collective investment scheme, including mutual funds.Prohibiting fraudulent and unfair trade practices relating to securities market.Promoting education, and training of intermediaries of securities market

Power of SEBI Power to approve the bye-laws of stock exchange Power to inspect the books of accounts Power to grant license to any person for the purpose of dealing in certain areas. Power to delegate powers exercisable by it. Power to try directly the foliation of certain provision of the company Act

6. Sensex & NiftyThe Sensex is an "index". What 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 Nifty is an indicator of all the major companies of the NSE.If the Sensex goes

The Sensex is an indicator of all the major companies of the BSE. If the Sensex goes up, it means that the prices of the stocks of most of the major companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most of the major stocks on the BSE have gone down. Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks of the NSE. Just in case you are confused, the BSE is the Bombay Stock Exchange and the NSE is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi. These are the major stock exchanges in the country. There are other stock exchanges like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE. Most of the stock trading in the country is done though the BSE & the NSE.

Besides Sensex and the Nifty there are many other indexes. There is an index that gives you an idea about whether the mid-cap stocks go up and down. This is called the BSE Mid-cap Index. There are many other types of indexes.How to see the value of shares in stock exchangeSENSEX is an indicator to checkout in BSE

NIFTY is an indicator to checkout in NSEWorking hours: From 9:30 to 3:30 from Monday to FridayHow stock exchanges get moneyThey get their money by listing fees paid by the corporation to have their company traded.HOW TO DEAL AND INVEST IN STOCK EXCHANGEIn order to deal with a securities one as to have an account called Demat a/c or trading a/c.Demat accountIn India, a demat account, the abbreviation for dematerialised account, is a type of banking account which dematerializes paper-based physical stock shares. The dematerialised account is used to avoid holding physical shares: the shares are bought and sold through a stock broker.

This account is popular in India. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. As of April 2006, it became mandatory that any person holding a demat account should possess a Permanent Account Number (PAN), and the deadline for submission of PAN details to the depository lapsed on January 2007.

Procedure1.Fill demat request form (DRF) (Obtained from a depository participant or DP with whom your depository account is opened).2.Deface the share certificate(s) you want to dematerialise by writing across Surrendered for dematerialisation.3.Submit the DRF & share certificate(s) to DP. DP would forward them to the issuer / their R&T Agent.4.After dematerialisation, your depository account with your DP would be credited with the dematerialised securities.

Required Documents for Demat AccountThe extent of documentation required to open a demat account may vary according to your relationship with the institution. If you plan to open a demat account with a bank, a savings, current and, or other account for which the holder have been issued a check book, such holder has an edge over the non-account holder. In fact, banks usually offer additional incentives to customers who open a demat account with them. Along with the application form, your photographs (with co-applicants) and proof of identity/residence/date of birth have to be submitted. The DPs also ask for a DP-client agreement to be executed on non-judicial stamp paper. Here is a broad list:1.A canceled check, preferably MICR2.Proof of Identification3.Proof of Address4.Proof of Pan card (mandatory)5.Recent photographs (one and/or more)

For proof of identification and, or address self-attested facsimile copies of PAN card, Voters ID, Passport, Ration card, Drivers license, Photo credit card, Employee ID card, Bank attestation, latest IT returns and, or latest Electricity/Landline phone bill are sufficient. While they only ask for photocopies of the documents, they will need the originals for verification.

The benefits of Demat Account1.A safe and convenient way to hold securities.2.Immediate transfer of securities.3.No stamp duty on transfer of securities.4.Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.5. Reduction in paperwork involved in transfer of securities;6.Reduction in transaction cost;7.No odd lot problem, even one share can be sold;8.Nomination facility;9.Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately;10.Transmission of securities is done by DP eliminating correspondence with companies Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc.11.Holding investments in equity and debt instruments in a single account.

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