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PLAN 1) Definition of Stock Exchange 2) Features of Stock Exchange

PLAN

1) Definition of Stock Exchange
2) Features of Stock Exchange
3) Function
4)

Broker and Jobber
5) Differences
6) Speculation and Speculator
7) The role of stock market
8) Conclusion
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“an association , organization , or a individual which is established

“an association , organization , or a individual which is

established for the purpose of assisting , regulating , and controlling business in buying ,selling and dealing in securities.”

WHAT IS STOCK EXCHANGE?

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It is an organized market It is a securities market It

It is an organized market
It is a securities market
It is an

important constituent of capital market i.e., market for long-term finance
It is a voluntary association of persons desirous of dealing in securities
Stock exchange is a voluntary association, its membership is not open to everybody
In a stock exchange, only the members can deal in i.e., buy & sell securities

FEATURES OF STOCK EXCHANGE

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Provide central and convenient meeting places for sellers and buyer of

Provide central and convenient meeting places for sellers and buyer of

securities
Increase the marketability and liquidity of securities
Contribute to stability of prices of securities
Equalization of price of securities
Smoothen price movement
Help the investors to know the worth of their holdings
Promote the habit of saving and investment
Help capital formation
Help companies and government to raise funds from the investors
Provide forecasting service

IMPORTANT FUNCTION OF STOCK EXCHANGE

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BROKER AND JOBBER BROKER: A broker in a stock exchange ,is

BROKER AND JOBBER

BROKER: A broker in a stock exchange ,is a

commission agent who transacts business in securities on behalf of non members.
JOBBER: He deals with brokers who are engaged with the investors and sells to members who are operating on the stock exchange as broker.
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deals with the jobber on behalf of his clients. is merely

deals with the jobber on behalf of his clients.
is merely

an agent, buying or selling securities on behalf of his clients
gets only commission for his dealings
deals in all types of securities

independent dealer in securities, purchasing or selling securities on his own account
deals only with the brokers ,does not deal with the general public
earns profit from his operations
specializes in certain group of securities

DIFFERENCES BETWEEN A JOBBER AND A BROKER

JOBBER

BROKER

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SPECULATION AND SPECULATOR SPECULATION : It is the transaction of members

SPECULATION AND SPECULATOR

SPECULATION : It is the transaction of members to

buy or sell securities on stock exchange with a view to make profits to anticipated raise or fall in price of securities.
SPECULATOR :. A person who trades derivatives, commodities, bonds, equities or currencies with a higher-than-average risk in return for a higher-than-average profit potential. Speculators take large risks, especially with respect to anticipating future price movements, in the hope of making quick, large gains.
BULL
BEAR
STAG
LAME DUCK
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SPECULATORS Speculators take large risks, especially with respect to anticipating future

SPECULATORS

Speculators take large risks, especially with respect to anticipating future

price movements, in the hope of making quick, large gains:
BULL
BEAR
STAG
LAME DUCK
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BULL He is speculator who expects the future raise in price

BULL

He is speculator who expects the future raise in

price of securities he buys the securities to sell them at future at the higher price.
The bull tends to throw its victims up in the air through its horns.
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BEAR He is speculator who expects future fall in prices ,

BEAR

He is speculator who expects future fall in prices ,

he does an agreement to sell securities at future date at the present market rate .
The bear tends to stamp its victims down to earth through its paws
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STAG He is not a genuine investor because , he sells

STAG

He is not a genuine investor because , he sells the

alloted securities at the premium and makes profit..
He creates an artificial rise in prices of new shares and makes profits.
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LAME DUCK He is speculator when the bear operator finds it

LAME DUCK

He is speculator when the bear operator finds it

difficult to deliver the securities to the consumer on a particular day as agreed upon. He struggles as a lame duck in full filling his commitment .
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THE ROLE OF THE STOCK MARKET They measure and control the

THE ROLE OF THE STOCK MARKET
They measure and control the growth

of a country.
Stock markets are the places, where exactly you do your business.
Stock exchange have very important role to play in the economy of the country.
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CONCLUSION EASY WAY TO EARN MONEY, EASY WAY TO LOSE MONEY STOCK EXCHANGE

CONCLUSION
EASY WAY TO EARN MONEY,
EASY WAY TO LOSE MONEY

STOCK EXCHANGE