STOCK MARKET

BULL VS BEAR
STOCK MARKET
It is a place where shares of pubic listed companies
are issued and traded.

The primary market is where companies float shares

to the general public in an initial public offering (IPO)
to raise capital.

Once new securities have been sold in the primary

market, they are traded in the secondary market
where one investor buys shares from another
investor at the prevailing market price or at whatever
price both the buyer and seller agree upon.
 STOCK EXCHANGE

It is an organized market where securities are bought

and sold at prices governed by the forces of demand
and supply.

The stock exchanges are the exclusive centres for

trading of securities.
Stock Exchange in India:
NSE National Stock Exchange
BSE Bombay Stock Exchange

The BSE has been in existence since 1875. BSE On-Line Trading
(BOLT) system introduced on 14th March 1995.
The NSE, on the other hand, was established in 1992 and
started trading in 1994.
LISTING OF SHARES
Listing refers to the company's shares being on the list (or
board) of stock that are officially traded on a stock exchange.

In other words, Listing means admission of securities on a

recognised stock exchange (NSE and BSE) for trading.

The prime objective of Listing of Shares on the exchange is to

provide liquidity and marketability to securities.

Listing of companies on a Stock Exchange is mandatory to

provide an opportunity to investors to invest in the securities
 DEMATERIALIZATION

Dematerialization (DEMAT) refers to conversion of a

share certificate from its present physical form to
electronic form for the same number of holding.

Dematerializationis the process of converting

physical shares into electronic format.

It offers scope for paperless trading whereby share

transactions and transfers are processed
electronically without involving any physical share
certificate
 DEPOSITORY SYSTEM

The operations in the Depository System involve the

participation:
Depository,

Depository Participants,

Company and Investors. The company is also called the Issuer.

A depository is an organization which holds securitiesof investors in

electronic form at the request of the investors through a registered
Depository Participant.

Depositories in India:
NSDL National Securities Depository Limited (Established in 1995 )
CDSL - Central Depository Services Limited (Established in 1999)
It can be compared with a bank, which holds the funds
for depositors.
CONTD.

A Depository Participant is the agent of the

Depository and is the medium through which the
shares are held in the electronic form. They are also
the representatives of the investor, providing the link
between the investor and the company through the
Depository.

Examples :
Karvy Stock Broking Limited

Sharekhan

ICICI Securities Ltd.

Geojit BNP Paribas

Advantages of Dematerialization

It is a safe and convenient way to hold securities.

It ensures immediate transfer of securities.
There is no stamp duty on transfer of securities.
Reduces Brokerage charges
Eliminates risks involved in physical certificates
Misplacing, thefts, fake certificates etc..
No paper work, hence time saving
Transmission of securities is done by DP, eliminating
correspondence with companies.
Increasing liquidity of securities due to immediate transfer
& registration
No loss of certificates in transit and saves substantial
expenses involved in obtaining duplicate certificates, when
the original share certificates become mutilated or
misplaced.
Procedure of opening a Demat account:

You can open a depository account with any DP convenient to

you by following these steps:

Fill up the account opening form, which is available with the

DP.

Sign the DP-client agreement, which defines the rights and

duties of the DP and the person wishing to open the account.

Receive your client account number (client ID). This client id

along with your DP id gives you a unique identification in the
depository system.

There is no restriction on the number of depository accounts

you can open.