Is the Stock Market and Share

Market same?

Stock market and share market essentially mean the same

thing. Both terms describe an exchange in which buyers and
sellers of stock or shares may trade in a market with high
liquidity
Share:
Share is a unit issued by a company at the
time of raising fund from the market. It is a
certificate issued to a person who applies for it
and is given at a value predetermined by the
company.
It is the smallest unit of ownership that may be
bought or sold on or off an exchange.

Stock:
Stocks in the reference of stock market are
the total number of shares a person has in
one company or in many companies.
 Stock Market
Stock market is an organised market, where
securities of govt, semi govt bodies and
corporate enterprises are brought or sold.

It is established for the purpose of assisting,

regulating and controlling business in buying
selling and dealing in securities.

In the stock market only those securities

listed in the stock exchange are transacted.

Individuals alone can buy and sell securities.

 Types of Stock Market
1. Primary Market:

The first group of investors to whom a new issue

of a security is sold.
The primary market consists of the issuer and the
first buyers of the issue.
The primary market can be a time more volatile
than the secondary market because it is difficult to
determine the underlying value of new issues.

2. Secondary Market:

A market where investors purchase securities or

assets from other investors, rather than from
issuing companies themselves.
The national exchanges - such as the New York
Stock Exchange and the NASDAQ are
secondary markets.
 Market Conditions
Bull Market:
A financial market conditions in which
prices of securities or group of
securities are rising or are expected to
rise.
Bull markets are characterized
by optimism, investor confidence and
expectations that strong results will
continue.

Bear Market:
It is a market condition in which the
prices of securities are falling.
As investors anticipate losses in a bear
market and selling
continues, pessimism only grows
 Types of Stocks
BLUE CHIP :
The blue chips carry the highest value.
Large, established firms with a long record of profit growth, dividend
payout and a reputation for quality management, products and
services are referred to as Blue Chip companies and their stocks are
Blue Chip stocks.
PENNY :
Penny stocks are low-priced, speculative stocks that are very risky.
These stocks are generally issued by the type of companies with a
short or erratic history of revenues and earnings.
INCOME :
Income stocks are stocks that pay higher-than-average dividends over
a sustained period.
These above average dividends tend to be paid by large, established
companies with stable earnings.
VALUE :
A value stock is a type of stock that is currently selling at a low price.
Companies that have good earnings and growth potential but whose
stock prices do not reflect this are considered value companies.
Investors who buy value stocks believe that these stocks are only
temporarily out of favour and will soon experience great growth.
 Procedure for listing in Stock Exchanges
1. Company decide to go public and raise fund from the
market and decide upon the Total amount to be raised
from the Market.
2. They get clarification from SEBI.
3. This amount is broken down in number of shares by
deciding the Face Value. As per the norms of the SEBI
the FV is to be multiple of 5. Normal practice is keeping
this at Rs10.
4. Then the No of shares to be introduced in the Market is
decided.
5. Depending upon the response of the Stock as IPO,
when it is opened on Secondary Market the price is
decided.
6. The combined collection of the firm from IPO and
Secondary Market operations becomes the Market
Capitalisation of the firm, from which a share of
Profitability is distributed among the share holders in the
form of Dividend
 Market Capitalization
Market capitalization is often called as market
cap is a measurement of the size of a business
enterprise.

It is the total dollar market value of all of a

company's outstanding shares calculated by
multiplying a company's shares outstanding
by the current market price of one share.

The companies were divided into large-cap, mid-

cap, and small-cap based on the size of market
capitalization.
Large-cap: $10 billion$100 billion.
Mid-cap: $1 billion$10 billion.
Small-cap: $100 million$1 billion.
 The Top 10 Largest Stock Markets
Domestic Market
Rank Exchange Name Country Capitalization(Billion
Dollars)
New York Stock
1 United States 11,837
Exchange

Tokyo Stock
2 Japan 3,306
Exchange

3 NASDAQ United States 3,239

Belgium, France,
4 Euro next 2,869
Holland, Portugal

London Stock
5 United Kingdom 2,796
Exchange

Shanghai Stock
6 China 2,704
Exchange
Hong Kong Stock
7 Hong Kong 2,345
Exchange
Toronto Stock
8 Canada 1,608
Exchange

9 BM & FBovespa Brazil 1,337

Bombay Stock India

10 1,306
Exchange
Stock Markets in India
Bombay Stock Exchange
National Stock Exchange

Regional Stock Exchanges

Ahmadabad
Bangalore
Bhubaneswar
Calcutta
Cochin
Coimbatore
Delhi
Guwahati
Hyderabad
Jaipur
Ludhiana
Madhya Pradesh
Madras
Magadh
Mangalore
Meerut
OTC Exchange Of India
Pune
Saurashtra Kutch
Uttar Pradesh
Vadodara

 Bombay Stock Exchange

Type Stock Exchange

Location Mumbai, India

Founded 1875

Owner Bombay Stock Exchange Limited

Key people Madhu Kannan (CEO & MD)

Currency Indian rupee

No. of listings 5,085

Market Cap US$1.8 trillion (Dec 2010)

Volume US$231 billion (Nov 2010)

BSE SENSEX
BSE Small Cap
Indexes
BSE Mid-Cap
BSE 500

Website www.bseindia.com
 BSE Indexes
BSE SENSEX:
The Bombay Stock Exchange SENSEX also referred to as BSE 30.
It is a free-float market capitalization weighted index of 30 well-established and
financially sound companies listed on Bombay Stock Exchange.
BSE Mid-Cap:
BSE Mid-Cap tracks the performance of scrips between 80 & 95% of
aggregate market capitalisation.
It is also introduced to track the performance of companies with
relatively smaller market capitalization.
BSE Small-Cap:
BSE Small-Cap index tracks the performance of remaining 5% scrips (95-100%).
It is introduced to track the performance of companies with relatively smaller
market capitalization.
BSE-500:
It represents more than 93% of the listed universe Companies with large market
capitalization.
 Some Companies listed in BSE based on Market
Capitalization:
Company Current Price (Rs) % Change Volume Equity Face Value Market Cap (Rs Cr)
Current Price
Reliance
Company Inds. 773.75
(Rs) -2.68
% Change 1024225
Volume 3,274.00
Equity 10Face Value Market
2,53,325.75
Cap (Rs Cr)
Reliance Inds.
ONGC 834.50
246.30 -0.08
-2.20 182987
508149 3,274.00
4,277.76 5 10 2,73,215.30
2,10,722.46
Coal India Ltd. 380.00 +0.50 63994 6,316.36 10 2,40,021.68
Tata Consultancy 1,062.40 -2.04 183366 195.72 1 2,07,932.93
ONGC 275.35 +5.86 1730408 4,277.76 5 2,35,576.24
Coal India Ltd. 300.90 -0.55 573715 6,316.36 10 1,90,059.27
Tata Consultancy 1,055.95 +1.53 92306 195.72 1 2,06,670.53
Infosys
ITC Ltd. 2,650.55
199.25 -2.67
+0.13 111157
73787 287.00
773.81 5 1 1,52,141.57
1,54,181.64
ITC
BhartiLtd.
Airtel 192.85
383.80 -1.66
-0.85 382925
64074 777.30
1,898.80 1 5 1,49,902.31
1,45,751.89
Bharti
NTPC Airtel 364.85
168.05 -3.70
+2.34 948270
138190 1,898.80
8,245.46 5 10 1,38,555.44
1,38,564.96
Infosys
NTPC 2,393.30
156.65 -0.51
+0.58 71284
289635 287.00
8,245.46 10 5 1,37,375.42
1,29,165.13
SBI
SBI 1,899.20
1,654.30 +0.06
-2.03 266889
773312 635.00
635.00 10 10 1,20,599.20
1,05,048.05
HDFC Bank 485.70 +0.25 47575 466.77 2 1,13,355.09
HDFC Bank 426.70 -3.85 559277 467.66 2 99,775.26
ICICI Bank 883.00 +0.82 112707 1,152.18 10 1,01,737.49
HDFC 624.65 -2.10 181526 294.44 2 91,960.97
L&T 1,609.50 +1.22 101813 122.00 2 98,179.50
Wipro Ltd 365.05 -3.17 298019 491.50 2 89,711.04
HDFC 666.55 +1.78 35362 293.99 2 97,979.52
ICICI Bank 726.95 -2.53 755878 1,152.47 10 83,778.81
NMDC Ltd. 238.00 +1.56 8225 396.47 1 94,359.86
Hindustan
Wipro Ltd Unilever L 383.00
348.00 -0.51
-0.01 155652
67815 216.10
491.10 1 2 82,766.30
85,451.40

LBharat
& T Heavy Ele 1,708.00
1,191.35 -0.13
-2.85 34093
509347 489.52
122.23 2 10 83,610.02
72,809.36
Indian Oil Corp 319.95 +1.19 72595 2,427.95 10 77,682.26
NMDC Ltd. 181.30 -4.38 49734 396.47 1 71,880.01
Indian OilUnilever
Hindustan Corp L 262.60
347.25 -3.47
-0.59 101045
33974 2,427.95
216.07 10 1 63,757.97
75,030.31
MMTC Ltd.
Bharat Heavy Ele 712.00
255.70 +1.61
-3.58 6023
539004 100.00
489.52 2 1 71,200.00
62,585.13

Reliance Petroleum
Adani Enterprises Lt L 130.85
591.00 +0.35
+1.10 2233265
14438 4,500.00
109.98 10 1 58,882.50
64,998.18
National Stock Exchange
Type Stock Exchange

Location Mumbai, India

Founded 1992

National Stock Exchange of

Owner
India Limited

Key people Ravi Narain (MD)

Currency Indian rupee

No. of listings 1,552

Market Cap US$1.59 trillion (Dec 2010)

S&P CNX Nifty

Indexes CNX Nifty Junior
S&P CNX 500

Website www.nse-india.com
 NSE Indexes
S&P CNX Nifty:
It is Standard & Poor's CRISIL NSE Index 50. Nicknamed Nifty 50 or simply
Nifty .
It is the leading index for large companies on the National Stock Exchange of
India.
The S&P CNX Nifty stocks represent about 60% of the total market capitalization
of the National Stock Exchange.
CNX Nifty Junior:
It represents the next range of liquid securities after S&P CNX Nifty.
It representing approximately 10% of the traded value of all stocks on the
National Stock Exchange of India.
S&P CNX 500:
The S&P CNX 500 is Indias first broad-based stock market index of the Indian
stock market.
The S&P CNX 500 represents about 96% of total market capitalization and about
93% of the total turnover on the National Stock Exchange of India (NSE).
 Importance Of Indices
The stock market indexes are useful in a number of
ways to stock investors:

1. The market indexes provide an historical perspective

of stock market performance.

2. It provide a yardstick with which investors can

compare the performance of their individual stock
portfolios.

3. It acts as a forecasting tool. Studying the historical

performance of the stock market indexes, investors
can forecast trends in the market