Sensex
The Stock Markets: Dissected
B.J.B. Autonomous College
Under the Guidance of:
Dr. Kartik Chandra Dash
Submitted by:
Arnav Pati
Roll No. BA10-215
Economics (Hons)
CONTENTS
1. Introduction 1 - 2 A. Stock – Meaning 1 B. Issuing Stock 1 C. The Stock Market and Stock Exchanges 1 2. Function 2 - 4 A. The Objectives and Functions of a Stock Market 2 B. Market Orders 3 C. Limit Orders 4 3. Interpreting the Stock Exchanges’ Ticker Symbols 5 4. SENSEX Calculation Methodology 6 - 7
Understanding Free-Floating Method 6
Examples 7 5. Important Market Trends 8 A. Bull Market 8 B. Bear Market 8 6. Bibliography and References 9
1. Introduction
A. Stock - Meaning Stock is ownership in a company, with each share of stock representing a tiny piece of ownership. The more shares we own, the more of the company we own, and the more dividends we earn when the company makes a profit. In the financial world, ownership is called equity.
Stocks are in two primary classes. The one we choose depends on what we want from a stock. Preferred stock typically pays regular dividends, and investors who want income foremost from their stocks favor it. Common stock represents ownership of a company and may offer more rights and privileges than preferred stock. B. Issuing Stock
Businesses issue stock to raise money. They use this money to finance expansions, pay for equipment and fund projects, etc. Corporations issue stock when they may need additional capital to operate successfully.
The fancy term for issuing stock to raise money is equity financing. The money received from investors who buy stocks is called equity capital.
In the world of securities, the word “equity” usually refers to stocks. The other method of raising money is debt financing, which involves selling bonds. When companies make
B.J.B. Autonomous College
Under the Guidance of:
Dr. Kartik Chandra Dash
Submitted by:
Arnav Pati
Roll No. BA10-215
Economics (Hons)
CONTENTS
1. Introduction 1 - 2 A. Stock – Meaning 1 B. Issuing Stock 1 C. The Stock Market and Stock Exchanges 1 2. Function 2 - 4 A. The Objectives and Functions of a Stock Market 2 B. Market Orders 3 C. Limit Orders 4 3. Interpreting the Stock Exchanges’ Ticker Symbols 5 4. SENSEX Calculation Methodology 6 - 7
Understanding Free-Floating Method 6
Examples 7 5. Important Market Trends 8 A. Bull Market 8 B. Bear Market 8 6. Bibliography and References 9
1. Introduction
A. Stock - Meaning Stock is ownership in a company, with each share of stock representing a tiny piece of ownership. The more shares we own, the more of the company we own, and the more dividends we earn when the company makes a profit. In the financial world, ownership is called equity.
Stocks are in two primary classes. The one we choose depends on what we want from a stock. Preferred stock typically pays regular dividends, and investors who want income foremost from their stocks favor it. Common stock represents ownership of a company and may offer more rights and privileges than preferred stock. B. Issuing Stock
Businesses issue stock to raise money. They use this money to finance expansions, pay for equipment and fund projects, etc. Corporations issue stock when they may need additional capital to operate successfully.
The fancy term for issuing stock to raise money is equity financing. The money received from investors who buy stocks is called equity capital.
In the world of securities, the word “equity” usually refers to stocks. The other method of raising money is debt financing, which involves selling bonds. When companies make