Professional Documents
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Stock market!!!!
MANIBA INSTITUTE OF BUSINESS MANAGEMENT
Steadfast
Talented
Observer
Comfortable
Knowledgeable
STOCK MARKET
WORKING
REGULATORY FRAMEWORK
WHY DO PEOPLE BUY SHARES?
WHY STOCK MARKET IS SO VOLATILE?
HOW TO MAKE MONEY IN STOCK MARKET?
ROLE OF STOCK MARKET IN ECONOMY
INTRODUCTION:
Stock
market??
PRIMARY MARKET
Deals with the new issues of securities.
SECONDARY MARKET
Deals with outstanding securities.
Also known as “STOCK MARKET”.
JARGON OF EQUITY MARKET:
• SECURITY
• BOND
• STOCK
1)COMMON STOCKS
2)PREFERRED STOCKS
• SHARE
• MUTUAL FUNDS.
Their usefulness:
Indices help to recognize broad trends in the market.
The investor can use the indices to allocate the funds
rationally among the stocks.
Technical analysts use these indices to predict the future
market.
Indices function as a status report on the general
economy.
JOB OF THESE INDICES:
Securities transaction
tax
Brokerage
Depository fees
SO HOW DOES ONE BUY
SHARES?
Unethical practices.
Big irrational greed, excessive speculation.
Lack of protection to interests of the genuine and small
investors .
Trading is extremely thin and restricted.
Structural and organisational imbalance in the growth of the
stock market.
Volatility of the market has increased over the years.
REMEDYS:
Single authority
Demutualization.
Prescribing capital adequacy norms.
Stricter registeration of brokers
Margin requirements .
Some Basic Background On The
Stocks And The Economic Market
WHAT ARE SECURITIES?
250
200
150 24-May
24-Dec
100 25-Dec
26-Dec
50 27-Dec
0
Stock
Exchange
POLITICAL PROMISES SPARK
MARKET SPECULATION
• Banks over-extended
DOWNWARD SPIRAL
- little out put means
less jobs
- Manufacturing
output fallen to 54%
of its 1929 output
- 25-30% of work
force unemployed
- 12 -15 Million
jobless
REASONS AMERICA’S
DEPRESSION EFFECTS WORLD
• Civilian
Conservation Corp
• National Recovery
Administration
• Federal Deposit
Insurance
Corporation
• Securities and
Exchange
Commission
MORE PROGRAMS
• Taxation
• Industrial regulation
• Social programs (social security,
pensions, welfare, others)
• Public programs
• Deficit spending
STOCK MARKETS MORE INFORMATION
THANK YOU FOR YOUR ATTENTION