A REPORT ON STOCK MARKET

GUEST LECTURE GIVEN BY: J.IMMAUEL (AXIS BANK MANAGER) HARI MURUGAN(Member of AXIS BANK, Coimbatore main branch)

Date: 15.11.2011 Place: Seminar Hall

STOCK MARKET

Capital Market Capital Market is raising funds, companies taping money in international market & etc. Rising funds are: Selling assets Borrowing from banks Borrowing from friends Shares-inviting the public

Types of Market Primary market Secondary market

Primary Market IPO- New company raising funds (i.e.) they decided to come up with IPO, where shareholders play the major role. They raise funds from public. They provide securities at face value or at a discount/premium. They raise resources to meet their requirements.

Pricing of an issue Pricing of an issue

Fixed price Issue price is known in advance to the investor

Book building Issue price is determined after closure of the budding

Floor price and Cap price This refers to the lower cap of the bidding price. Secondary Market Mainly it relates to stock exchanges: Securities are traded after being initially offered to the public. Provides liquidity to investors.

Majority of the trading is done in the secondary market.

BSE & NSE are the two stock exchanges. Stock exchange It provides a trading platform, where buyers and sellers can meet to transact in securities. Managing students: Trading car (e.g.).

Role of stock exchange 1. 2. 3. 4. 5. Provide trading platform. Provide liquidity. Listing of securities. Make & enforce by laws. Manage risk in securities to management. BSE- Bombay Stock Exchange NSE-National Stock Exchange BSE is the very old platform in Asia in the year 1875. It all started under one tree where 4 Gujaratis and 1 Parsi started it.

Indexes of BSE & NSE Sensex Nifty

Market Timings From morning 9.00 to 15:30 hrs. All weekdays except on all Saturdays and Sundays.

Trading on BSE & NSE 1. To provide transparency, efficiency & depth to market, BSE & NSE provide screen based trading platforms called BOLT & NEAT. 2. BOLT: BSE Online Trading. 3. NEAT: National Exchange for Automated Trading. Order Management 1. Entering order 2. Order modification 3. Order cancellation Entering order Active order

Passive order Symbol order Order book/trade book

Trading To trade in shares through stock exchange, we are required to open the following the accounts: Trading account- T+2 basis Bank account- create liquidity between demat account & trading account. Demat account Bank accounts are used to transfer/receive money to/from stock broker. It is open with bank (AXIS). Stock Broker They are the intermediaries who are allowed to trade in securities on the exchange of which they are members. A stock broker is a member of stock exchange.

Demat Account It is used to hold the stock in electronic form. It is open with depository participant. Depository participant is an agent of the depository & is authorized to offer depository services to investors. Capital Markets- SEBI (based exchanges). SEBI- Stock Exchange Board of India. Regulating store exchanges in India. Merchant Banker is between the promoter and investor. Merchant Banker mainly deals with advertisement, price band, and projection of company to public & etc.

IPO rating Book building Fixed price

Stock market or equity market is a system through which company shares are traded. Stock or Share Rs. 100 is divided into 10 pieces and cost of each piece will be Rs. 10. A stock represents ownership in a company when you buy shares, you own the company to the extent of number of shares that you own.

Dividend Whenever the business earns profit, the profit will be shared among the shareholders, according to their investments in the business. The amount of profit shared is known as dividend.

Superior Research tools in AXIS Bank 1. 2. 3. 4. 5. 6. 7. Pre-defined screener- direct search of a company. Stock comparator- comparing stocks. Technical charting- project report. Customized screener. Risk profile- which field is best to invest. Alert engine-altering. Income estimator.