Report

Topics: Stock market, Stock exchange, Stock Pages: 50 (9984 words) Published: August 25, 2013
Table of contant

1. Industry profile09

2. Company profile13

3. Objectives of study21

4. Project title24

5. Research and methodology 26

6. Fact and finding28

7. Analysis and interpretation 33

8. Suggestion 58

9. Limitations59

10. Conclusion 60

11. Appendices61

12. Bibliography 64

Industry Profile

ORIGIN OF SHARE MARKETS IN INDIA

The origin of stock market in India goes back to the end of the 18th century when long term negotiable securities where first issued. However, for all practical purposes, the real beginning occurred in the middle of the 19th century after the enactment of the company’s act in 1850, which introduced the feature of limited liability and generated investor interest in corporate securities.

An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers association at Bombay in 1875, the precursor of the present day Bombay Stock Exchange. This was followed by the formation of associations/exchanges in Ahmadabad (1894), Calcutta (1908), and Madras (1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently.

Presently the recognized stock exchanges in India have one of the following organizational forms; Voluntary non- profit making association
Public limited company and
Company limited by guarantee
A governing body consisting of selected and nominated members manages recognized stock exchanges. Stock exchanges are required to appoint an executive director with substantial powers to be the chief operating executive. 1. STOCK

A type of security that signifies ownership in a corporation and represents a claim on part of the corporation’s assets and earnings. There are two main types of stock: common and preferred. Common stock usually entitles the owner the right to vote at shareholder meetings and to receive dividends that the company has declared. Preferred stock generally does not have voting rights, but has a higher claim on assets and earnings than the common shares. For example, owners of preferred stock receive dividends before common shareholders and have priority in the event a company goes bankrupt and is liquidated. Also known as shares or equity.

2. SECURITIES
Tradable interests representing financial value. They are often represented by a certificate. They include shares of corporate Stock or Mutual fund, bonds issued by corporation or governmental agencies Stock Options Or other options, Other derivatives securities, limited partnership units, and various other formal “investment instruments.”

Primary Market
The market in which investors have the first opportunity to buy a newly issued security.

Secondary Market
A market on which an investor purchases an asset from another investor rather than an issuing corporation. Exchange
A market in which securities, commodities, options, or futures are traded.

3. Security Exchange Board of India (SEBI)

The regulatory body for the investment market in India. The purpose of this board is to maintain stable and efficient markets by creating and enforcing regulations in the market place. Shortly after the stock market crash of 1929 (known as Black Thursday), a regulatory body called the Securities & Exchange Commission (SEC) was born. Its goal was to restore investor confidence and faith in a financial sector that was notorious for fraudulent activities, easy credit and hazardous investments. Two significant proposals by the U.S. Congress, the Securities Act of 1933 and the Securities Exchange Act of 1934, led the way to the formation...
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