presentation of history of stock market

7/21/2019 Presentation of History of Stock Market

http://slidepdf.com/reader/full/presentation-of-history-of-stock-market 1/20

Common Stock

Financing corporation

Good Morning

Bishnu & His FriendsBishnu Dhamala

Amrit Thapa

Rabindra eupane

!!"!



#hat #e are going to $resent%

"ntroduction

"Histor' o( )orld Stock Market

"Histor' o( epalese StockMarket

"Corporate *)nership"Conclusion

!!"+



Corporate *)nership

The major advantage of the corporate form of business

is the ease of raising capital as both large and small

investors can participate in corporate ownership.

Simple tobecome an

owner

Easy totransfer

ownership

Provideslimited

liability

Because a corporation is a separate legal entity, it can Own assets. ncur liabilities. Sue and be sued. Enter into contracts.

!!",



The History of Stock Market in the WorldThe History of Stock Market in the World

-

Amsterdam Stock Exchange in 1602 in the city of Amsterdam, Netherlands.

Paris Borse in 1!2" in Paris, #rance.

Philadel$hia Stock Exchange in 1!%0 in Philadel$hia, &SA.'ondon Stock Exchange in 1(01 in 'ondon, England. )o*e+er, a market had existed

$re+iosly *ith records -eginning in 16%( agro/commodity at onathans 3offee

)ose, also in 'ondon.

4ilan Stock Exchange in 1(0( in 4ilan, 5taly.

Ne* ork Stock Exchange in 1(1! in Ne* ork, &SA. 7his exchange *as $receded -y the Btton*ood Agreement of 1!%2.

#rankfrt Stock Exchange in 1(20 in #rankfrt, 8ermany. 1(20 denotes the first

records of shares -eing traded. 7here *as, ho*e+er, a market for -onds de-t

instrments since the late 1(th centry.

Bolsa de 4adrid in 1(91 in 4adrid, S$ain.7oronto Stock Exchange in 1(61 in 7oronto, 3anada.

Astralian Stock Exchange in 1(!2 in Sydney, Astralia.



5ndian Stock 4arket

Bom-ay Stock Exchange in 1(!:.

Ne$alese Stock 4arket

Ne$al Stock Exchange NEPSE in anary 19, 1%%".

7he history of common stock

7he oldest existing stock certificate *as issed in 1606 for a

;tch com$any <ereinigte =ostindische 3om$aignie

5n Ne$al, Biratnagar te 4ills 'imited, in 1%9! A.;. issed the

first common stock in Ne$al.

.



Brief !istory of stoc" mar"etBrief !istory of stoc" mar"et

development in #epaldevelopment in #epal Stock market -egan *ith the isse of shares -y Biratnagar te 4ills 'td in

1%9!. Secrity 4arketing 3entre S43 *as esta-lished in A$ril 1%!! nder

5ndstrial Policy, 1%!" *ith the o->ecti+e of facilitating the transaction ofgo+ernment de+elo$ment -onds and cor$orate secrities.

S43 started secondary trading of secrities in No+em-er 1%(1 *hich

restricted to go+ernment -onds. Secrity Exchange Act, 1%(9 *as enacted in 1%(9. 7he then S43 *as con+erted into Secrities Exchange 3entre SE3 in 1%(".

SE3 o$ened its floor for cor$orate share trading in No+em-er 1%(". 7he first amendment in Secrities Exchange Act, 1%(9 in 1%%9 $a+ed the *ay

for the restrctring of stock market in Ne$al, *hich led to esta-lishSecrities Board of Ne$al SEB=N in 1%%9 *ith a mandate to reglate andde+elo$ the stock market.

7he first amendment in the Act also led to con+ert the then SE3 into NEPSE,a fll/fledged o$en/ot/cry trading system *ith the indction of stock -rokersin anary 19, 1%%".

/



$oting rights.

%ividends.

&esidual claims.Stoc"holder

Benefits

Corporate *)nership

Preemptive rights.

!!"0



$ i c e P r e s i d e n t

' P r o d u c t i o n (


' ) a r " e t i n g (


' * i n a n c e (


' P e r s o n n e l (

P r e s i d e n t

B o a r d o f % i r e c t o r s

S t o c " h o l d e r s

' O w n e r s o f v o t i n g s h a r e s (

Corporate *)nership

!!"1



23uit' 4ersus Debt Financing

Ad5antages o( e3uit'

6 23uit' does not ha5e tobe repaid7

6 Di5idends are optional7

Ad5antages o( debt

6 nterest on debt is ta8deductible7

6 Debt does not change

stockholder control7

Ad5antages o( e3uit' and debt (inancing7 Ad5antages o( e3uit' and debt (inancing7

!!"9



Two primary sources of

Stoc"holders+ Euity

Common Stock Transactions

-ontributed

-apital

-ommon

Stoc"

dditional

Paid/in

-apital

&etained

Earnings

!!"!:



Authori;ation< ssuance< and

Repurchase o( Stock

The ma0imum number

of shares of capital

stoc" that can be

issued to the public.

ssued

shares are

authori1ed

shares of

stoc" that

have beendistributed to

stoc"holders.

2nissued

shares of

stoc" are

shares that

have never

beendistributed to

stoc"holders.

2nissued

Shares

Treasury

Shares

Outstanding

Shares

Outstanding shares areissued shares that are

owned by stoc"holders.

uthori1ed

Shares

!!"!!



Stock Authori;ation

Par value is anarbitrary amountassigned to each

share of stoc" when itis authori1ed.

Par value is anarbitrary amountassigned to each

share of stoc" when itis authori1ed.

)ar"et price is theamount that each

share of stoc" will sellfor in the mar"et.

≠

!!"!+



Stock ssuance

nitial public offering

'PO(

The first time a

corporation issues

stoc" to the public.

Seasoned new issue

Subseuent issues

of new stoc" to the

public.

!!"!,



Di5idends on Common Stock

%eclared by board

of directors.

#ot legallyreuired.

-reates liability at

declaration.

&euires sufficient &etained

Earnings and -ash.

!!"!-



Di5idends Dates

!!"!.



&ecord at currentmar"et value

of stoc".

&ecord atpar value

of stoc".

Small 3arge

The journal entry moves an amount from

&etained Earnings to other euity accounts.

Stock Di5idends

Stoc" dividend 4 56 7 589Stoc" dividend : 56 7 589

!!"!/



$re(erred Stock Di5idends

6 -urrent %ividend Preference; The currentpreferred dividends must be paid beforepaying any dividends to common stoc".

6 -umulative %ividend Preference; nyunpaid dividends from previous years'dividends in arrears( must be paid beforecommon dividends are paid.

f the preferred stoc" is noncumulative, any

dividends not declared in previous years are lost

permanently.

!!"!0



#et ncome

verage #umber of -ommon Shares Outstanding

EPS <

Earnings per share is probably the singlemost widely watched financial ratio.

2arnings $er Share =2$S>

!!"!1



Return on 23uit' =R*2>

#et ncome

verage Stoc"holders+ Euity&OE <

&eturn on euity is the amount earned

for each dollar invested by stoc"holders.

!!"!9



Thank 'ou

presentation of history of stock market

Documents