history of stock

8/14/2019 History of Stock

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GROUP NO 1


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GROUP MEMBERS

SHIVA KUMAR

EDEL

BELINDA

AUSTIN

ALLAN

SHREEM


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BYSHIVA KUMAR


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Stocks:Securities or certificates representing fractional ownership of a companypurchased as an investment.

Stock market.A stock market may be a physical place, sometimes known as astock exchange, where brokers gather to buy and sell stocks and

other securities.

The term is also used more broadly to include electronic tradingthat takes place over computer and telephone lines. In fact, inmany markets around the world, all stock trading is handled

electronically.


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The market in which shares are issued and traded either

through exchanges or over-the-counter markets. Also

known as the equity market, it is one of the most vital

areas of a market economy as it provides companies with

access to capital and investors with a slice of ownership in

the company and the potential of gains based on the

company's future performance.


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Some Features of Stock Exchange Market

1. Specialized market. Stock exchange is a

specialized market for the purchase and sale of

industrial and financial securities.

2. Rigid rules. There are large number ofbuyers and sellers who conduct their activities

according to rigid rules.

3. Basis of formation. Its activities arecontrolled by the company ordinance in our

country. It can be formed as company limited by

guarantee or company limited by shares


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4. Price Transparency - Because all trades for a stock flow through one

exchange, this means that everyone sees and has the opportunity to

execute on the same exact price as everyone else.

. 5. Regulatory Framework- the exchanges provide a standardized

regulatory framework that all participants must adhere to, and a method for

resolving disputes should they arise. This makes people more comfortable

and more likely to trade, which increases liquidity.

6. Liquidity - Liquidity is basically how much of a particular instrument can

be traded without affecting its price which is directly related to the volume

or number of buyers and sellers transacting at anyone time.

7.Capital market consists of primary and secondary markets.

8. Fully computerized trading.


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BY,

BELINDA


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Raising capital for businesses Mobilizing savings for investment

Facilitating company growth

Profit sharing

Creating investment opportunities for small

investors

Government capital-raising for development

projects

Barometer of the economy


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History Of Stock Exchanges

Presented By

Edel Sequeira0816016


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History

In 11th century France the courtiers de change were concerned withmanaging and regulating the debts of agricultural communities on

behalf of the banks.

In the late 13th century commodity traders in Bruges gathered inside

the house of a man called Van der Burse

In 1309 they institutionalized this until now informal meeting and

became the "Bruges Bourse".

The idea spread quickly around Flanders and neighbouring counties

and "Bourses" soon opened in Ghent and Amsterdam


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Cont.

In the middle of the 13th century, Venetian bankers began to trade ingovernment securities.

There were people in Pisa, Verona, Genoa and Florence who also

began trading in government securities during the 14th century

The Dutch later started joint stock companies, which let shareholders

invest in business ventures and get a share of their profits or losses


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Cont.

In 1602, the Dutch East India Company issued the first shares on the

Amsterdam Stock Exchange

It was the first company to issue stocks and bonds.

In 1688, the trading of stocks began on a stock exchange in London

On May 17, 1792, twenty-four supply brokers signed the Buttonwood

Agreement outside 68 Wall Street in New York underneath a

buttonwood tree.

On March 8, 1817, properties got renamed to New York Stock &Exchange Board.

In the 19th century, exchanges got substantiated to trade futures

contracts and then choices contracts


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Cont.

Today, stock exchanges operate around the world, and they havebecome highly regulated institutions.

Investors wanting to buy and sell shares must do so through a sharebroker, who pays to own a seat on the exchange.

Companies with shares traded on an exchange are said to be 'listed'and they must meet specific criteria, which varies across

exchanges.

Most stock exchanges began as floor exchanges, where traders madedeals face-to-face.

The largest stock exchange in the world, the New York StockExchange, continues to operate this way, but most of the world's

exchanges have now become fully electronic


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The London Stock Exchange

Participants in the stock

market range from small

individual stock investors to

large hedge fund traders. Their

orders usually end up with a

professional at a stock

exchange, who executes the

order.


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Some exchanges are physical locations where transactions arecarried out on a trading floor, by a method known as open outcry.

The other type of stock exchange is a virtual kind, composed of anetwork of computers where trades are made electronically viatraders.

Actual trades are based on an auction market model where apotential buyerbids a specific price for a stock and a potential seller

asks a specific price for the stock. When the bid and ask pricesmatch, a sale takes place on a first come first served basis if thereare multiple bidders or askers at a given price.


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New York Stock Exchange

The New York Stock

Exchange is aphysical exchange,

also referred to as a

listedexchange

only stocks listed with

the exchange may be

traded


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Orders enter by way of exchange members and flow down to a floorbroker, who goes to the floor trading post specialist for that stock totrade the order.

The specialist's job is to match buy and sell orders using openoutcry.

If a spread exists, no trade immediately takes place--in this case the

specialist should use his/her own resources (money or stock) toclose the difference after his/her judged time.

Once a trade has been made the details are reported on the "tape"and sent back to the brokerage firm, which then notifies the investorwho placed the order.

Although there is a significant amount of human contact in thisprocess, computers play an important role, especially for so-called"program trading"


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Origin The Indian Stock Market is One of the oldest stock markets in Asia and has a history of

over 200 years.

18th

Century

East India Company was the dominant institution and by end of the century and

business in its loan securities gained full momentum1830's Business on corporate stocks and shares in Bank and Cotton presses started in

Bombay. As a result, the Trading list got broader by the end of 1839.

1840's About half a dozen brokers gained Recognition from banks and merchants.

1850's Rapid development of commercial enterprise saw brokerage business attractingmore people into the business.

1860's The number of brokers increased to 60.

1860-61 The American Civil War broke out which caused a stoppage of cotton supplyfrom United States of America; marking the beginning of the "Share Mania"in India

1862-63 The number of brokers increased to about 200 to 250

1865 A disastrous slump began at the end of the American Civil War (For instance,Bank of Bombay Share which had touched Rs. 2850 could only be sold atRs. 87)


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Pre-Independence Scenario - Establishment of Different Stock

Exchanges

1874 With the rapidly developing share trading business, brokers used to gather at astreet (now well known as "Dalal Street") for the purpose of transacting

business.

1875 "The Native Share and Stock Brokers' Association" (also known as "TheBombay Stock Exchange") was established in Bombay

1880's Cotton mills industry was developed and many others were set up.

1894 "The Ahmedabad Share and Stock Brokers' Association" was established.

1908 "The Calcutta Stock Exchange Association" was formed.

1920 Madras witnessed boom and business at "The Madras Stock Exchange" wastransacted with 100 brokers.

1923 When recession followed, number of brokers came down to 3 and the

Exchange was closed down

1934 The Lahore Stock Exchange was established.

1936 The Lahore Stock Exchange was merged with the Punjab Stock Exchange.


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Contd..

1937

Re-organisation and set up of the Madras Stock Exchange Limited (Pvt.)

1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limitedwere established.

1944 "The Hyderabad Stock Exchange Limited" was established.

1947 "Delhi Stock and Share Brokers' Association Limited" and "The Delhi Stocksand Shares Exchange Limited" were established and later on merged into"The Delhi Stock Exchange Association Limited"


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Post Independence Scenario

After the Independence, India witnessed depression which led toclosure of a lot of exchanges in the country. Lahore stock Exchange

was closed down after the partition of India, and later on merged withthe Delhi Stock Exchange. Bangalore Stock Exchange Limited wasregistered in 1957 and got recognition only by 1963. Most of the otherExchanges were in a miserable state till 1957 when they applied forrecognition under Securities Contracts (Regulations) Act, 1956. TheExchanges that were recognized under the Act were:

1. Bombay2. Calcutta

3. Madras

4. Ahmedabad

5. Delhi

6. Hyderabad7. Bangalore

8. Indore


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Stock Exchanges established during 1980's

Cochin Stock Exchange (1980) Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982) Pune Stock Exchange Limited (1982) Ludhiana Stock Exchange Association Limited (1983)

Gauhati Stock Exchange Limited (1984) Kanara Stock Exchange Limited (at Mangalore, 1985) Magadh Stock Exchange Association (at Patna, 1986) Jaipur Stock Exchange Limited (1989) Bhuvaneswar Stock Exchange Association Limited (1989)

Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989) Vadodara Stock Exchange Limited (at Baroda, 1990) Coimbatore Stock Exchange Meerut Stock Exchange


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At present, there are twenty one recognized stock exchanges in India

excluding Over the Counter Exchange of India Limited (OTCEI) and

the National Stock Exchange of India Limited (NSEIL).


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Stock ExchangeStock Exchange

Presented ByPresented By

Allan F GonsalvesAllan F Gonsalves


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Difference between Stock exchangeDifference between Stock exchange

and commodity exchangeand commodity exchange

Functions

SE>provide easy marketability

CE>Offering hedging or priceinsurance services and liquidity

to securities


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Object

SE>Facilitating capital formation

CE>Facilitating goods flow throughrisk reduction


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Participants

SE>Investors and Speculators

CE>Producers, Traders, and body ofspeculators


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Articles Traded

SE>Industrial securities such asstocks , bonds, govt bonds etc

CE>Only durable goods and goodshaving large volume of trade


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BSE MILESTONESBSE MILESTONES

1840-50 half a dose converge undera banyan tree near Horniman circle

1860-65 the number of brokers riseto about 250

1874 The broking community find aplace what is now called Dalal Street

1875 Native share and stock brokersassociation was started


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1895 The exchange moves into what is nowknown Stock Exchange Old Building

1921 The establishment of clearing house for

settlement of transactions 1957 The government accords permanent

recognition under the securities contracts

1986 on Jan 2nd BSE Launches first stock

index with 30 scripts

1994 Serial bomb blast


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1997 Screen based tradingcommences

2000 BSE becomes first exchange inthe country to introduce trading inderivatives


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Importance of Indian stockmarket, how growing and

declining economy affectthe stock market

Presented by :Shreem Ranjitha .AREG NUM:0816114


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Cont..

FDI

BSE

NSEHigher GDPBiggest enterprises

Least affected by recession

A happening market


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Eff t f t k k t


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Effect of stock market ondeclining market economy.

k t i


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market inIndia

The draught situation and weak global trends pulled

down the sensex on Wednesday by 226 points.


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history of stock

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