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    Stock Market: Aditya Mohan BBA 3"B"

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    rajiv
    This document provides an overview of the stock market. It defines a stock market as a public market for trading shares of publicly held companies. The stock market allows businesses to raise capital by selling shares to the public. It also describes bull and bear markets, with bull markets referring to rising share prices and bear markets referring to declining share prices. The document then discusses the two major Indian stock exchanges, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), including details on their founding dates and major indices (SENSEX for BSE and NIFTY for NSE). It concludes by explaining how stock market indices like SENSEX are calculated based on the free-float market capitalization of constituent stocks.

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    Stock Market: Aditya Mohan BBA 3"B"

    Uploaded by

    rajiv
    94 views11 pages
    This document provides an overview of the stock market. It defines a stock market as a public market for trading shares of publicly held companies. The stock market allows businesses to raise capital by selling shares to the public. It also describes bull and bear markets, with bull markets referring to rising share prices and bear markets referring to declining share prices. The document then discusses the two major Indian stock exchanges, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), including details on their founding dates and major indices (SENSEX for BSE and NIFTY for NSE). It concludes by explaining how stock market indices like SENSEX are calculated based on the free-float market capitalization of constituent stocks.

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    Stock Market

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    This document provides an overview of the stock market. It defines a stock market as a public market for trading shares of publicly held companies. The stock market allows businesses to raise capital by selling shares to the public. It also describes bull and bear markets, with bull markets referring to rising share prices and bear markets referring to declining share prices. The document then discusses the two major Indian stock exchanges, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), including details on their founding dates and major indices (SENSEX for BSE and NIFTY for NSE). It concludes by explaining how stock market indices like SENSEX are calculated based on the free-float market capitalization of constituent stocks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    94 views11 pages

    Stock Market: Aditya Mohan BBA 3"B"

    Uploaded by

    rajiv
    This document provides an overview of the stock market. It defines a stock market as a public market for trading shares of publicly held companies. The stock market allows businesses to raise capital by selling shares to the public. It also describes bull and bear markets, with bull markets referring to rising share prices and bear markets referring to declining share prices. The document then discusses the two major Indian stock exchanges, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), including details on their founding dates and major indices (SENSEX for BSE and NIFTY for NSE). It concludes by explaining how stock market indices like SENSEX are calculated based on the free-float market capitalization of constituent stocks.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Stock Market

    Aditya Mohan
    BBA 3”B”
    Content :-

    • Stock Market
    • Importance of Stock Market
    • Bull & Bear Market
    • Indian Stock Exchanges
    • Stock Market Index
    • Examples of Stock Market Index
    What is Stock Market?

    • A stock market or equity


    market is a public entity for
    trading of company stock
    (shares) and derivatives at an
    agreed price;these are
    securities listed on a stock
    exchange as well as those
    only traded privately.
    Importance

    •The Stock market is one of the


    most important sources for to
    raise money. This allows
    businesses to be publicly
    traded,or raise additional
    capital for espansion by selling
    shares of ownership of the
    company in a public market.
    Bull & Bear
    Market
    Bull Market : A “Bull Market” refers to a
    market that is on the rise.There is a
    sustained increase in market share prices.
    Bear Market : A “Bear Market” is a general
    decline in the stock market over a period of
    time.Share prices are continuously
    dropping,resulting in a downward trend.
    • Established in 1875 in Mumbai
    Indian Stock • Asia’s First stock exchange
    Markets. • Largest Stock Exchange in India
    • SENSEX (Sensitivity Index) is the index
    of the BSE.
    Bombay Stock • Members : 852
    Exchange • Consists group of 30 stocks
    • Market Opens 09:15 am
    • Market Closes 03:30 pm
    National Stock Exchange

    • Established in 1992
    • 2nd largest Stock Exchange in India
    • NIFTY (NSE Fifty) is the index of the NSE.
    • Members: 726
    • Consists group of 50
    • Market Opens 09:15 am
    • Market Closes 03:30 pm
    Stock Market Index
    • More than 7000 companies are listed on
    BSE & NSE.
    • It Measures the performance of the Stock
    Exchange.
    • Market Index : Similar Stocks are grouped
    • Value of Grouped Stocks = Collective Value
    of Index.
    • Therefore,any changes in the value of
    these group of stocks changes the value of
    the Index.
    How Sensex Index
    Calculated:-
    Formula for calculating the
    Sensex =(sum of free float
    market capitalization of 30
    Benchmark Stock )* Index
    Factor

    Where,
    Index Factor = 100/Market Cap
    Value in 1978-79
    Examples on Sensex
    Index Calculation
    •Assume SENSEX has only 2 Stocks namely SBI and TATA. Total
    shares in SBI are 500 out of which 200 are held by government
    and only 300 are available for public trading.TATA has 1000 shares
    out of which 500 are held by promoters and 500 are available for
    trading,Assume price of SBI stocks is ₹100 & TATA is  ₹200
    •Solution:-
    •Then Free Foat Cap of these two company
    •=(300*100+500*200)
    •=30000+1,00,000
    •=1,30,000
    •Assume Market Cap during the year 1978-79 was 25,000
    •Then SENSEX = 1,30,000*100/25000
    •=520
    Thank You

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