Stock Exchange

SOUAD ELBOUDADI
GEOFC 304
stock market
is a component of a free-market economy. It allows companies
to raise money by offering stock shares and corporate bonds
and allows investors to participate in the financial
achievements of the companies, make profits through
capital gains, and earn income through dividends. The stock
market works as a platform through which savings and
investments of individuals are efficiently channeled into
productive investment opportunities and add to the capital
formation and economic growth of the country.
 STOCK
EXCHANGES -
STATISTICS &
FACTS
Stock exchanges worldwide provide the infrastructure and technology to enable the public trade of financial
products. The most prominent traded products are equity shares – also called stocks- in the ownership of
companies listed on the stock market.

The U.S. boasts the most developed stock markets with

thousands of domestic and foreign companies listed on its exchanges. One of the most common indicators to
compare stock exchanges and their performance is the combined market capitalization of all listed companies,
which is the share price of a company multiplied by the total number of shares issued. U.S.-based stock
exchanges host the most valuable companies worldwide, and are therefore the largest in terms of market
capitalization.

Younger stock exchanges, however, like the Shanghai Stock Exchange and the Shenzhen Stock Exchange have
Nasdaq and NYSE: the leading stock
exchanges worldwide
Largest stock exchanges by market
capitalization of listed domestic
companies as of October 2022 (in
trillion U.S. dollars)
Tracking stock markets’ developments
With larger stock markets recording millions of transactions per day, the question arises of how to track stock market
developments. Generally, this is achieved via a stock market index, which follows the price development of a group of
financial assets traded on an exchange from a single point in time via a single aggregated value.

There are several indexes in the world, some very broad and inclusive, while others are focused on specific sectors or
asset classes. For instance, the S&P 500 tracks the market capitalization of the 500 largest companies listed on U.S.
stock exchanges.

Major local stock market indices include the FTSE 100, which tracks the performance of the largest 100 UK companies;

the Nikkei, comprised of 225 selected major Japanese companies; and the Hang Seng, covering the 50 largest companies
on the Hong Kong Stock Exchange, among others. Looking at broader indices, perhaps among the most important are the
MSCI World, which includes 1,583 companies across 23 developed economies, and the and the EURO STOXX 50,

tracking the performance of the 50 leading companies listed in the Eurozone and representing all major industries. All
these indexes are considered bellwethers for the corresponding national economy or sector
Tracking stock markets’ developments

With larger stock markets recording millions of transactions per

day, the question arises of how to track stock market developments.
Generally, this is achieved via a stock market index, which follows
the price development of a group of financial assets traded on an
exchange from a single point in time via a single aggregated value.
There are several indexes in the world, some very broad and
inclusive, while others are focused on specific sectors or asset
classes.
For instance, the S&P 500 tracks the market capitalization of the 500 largest
companies listed on U.S. stock exchanges. Major local stock market indices include
the FTSE 100, which tracks the performance of the largest 100 UK companies; the
Nikkei, comprised of 225 selected major Japanese companies; and the Hang Seng,
covering the 50 largest companies on the Hong Kong Stock Exchange, among others.

Looking at broader indices, perhaps among the most important are the MSCI World
, which includes 1,583 companies across 23 developed economies, and the and the
EURO STOXX 50, tracking the performance of the 50 leading companies listed in
the Eurozone and representing all major industries. All these indexes are considered
bellwethers for the corresponding national economy or sector.
Types of stock market
Normal market Odd lot market
Order traded in 01 02 Used for limited physical
regular lot size for demat market. Order not traded in

S W
shares, lot size is 1 share regular lot size

Spot market
T O Auction market
Different settlement Initiated by exchange on
periods depends on 04 03 behalf of members for
normal orders. settlement related reasons
Benefits of stock market

Possibility of Income from Easy liquidity Tax benefits on

increase in dividends income earned
value of share such as exemptions
U/s 10 for
dividends
 Change in
Demand and
company’s board of
supply
directors

Speculative Causes of Financial position

of the company
pressure
stock
market

Actions of underwriters
Sympathetic
and other financial
fluctuations
institutions
Stock market shares in world wide
Trading in stock market

The stock purchased The market regulation A person wants to buy/sell

shall be sent to your SEBI has made it shares in stock market has
DEMAT account. This compulsory to open a to first place an order
process is called rolling DEMAT account to buy with broker
settlement cycle and sell stock
Types of trading in stock market

01 02 03

Short term trading Mid term trading Long term trading

Stock trading done for Stock trading done for Stock trading done for
one week to couple of one month to couple of one month to couple of
months called short months called short months called short
term trading term trading term trading
Financial market

Primary market
It deals in issuance of
securities and shares are
traded for the first time

Secondary market
It’s a market where
previously issued securities
are bought and sold
Stock market growth

Share market growth

The actual average stock
market revenue is 10%
50
Currently, investors can expect to lose
the purchasing power of 2% to 3%
40
every year due 30
to the increase. The stock market is
provided toward long-term finances —
20
money you don't require for at least 10
five years.
Reason for stock market down
Increasing interest rates can
place down pressure on real
estate investment trusts
(REITs) and slow the
protection market.
01
02
More imposing interest rates
mean higher borrowing costs
slowing down buying activity
and making stock prices to
dive Rising profit rates can
place downward pressure on
real estate investment trusts
(REITs) and slow the
protection market.
03

More unusual interest rates

mean higher borrowing costs
slowing down buying activity
and causing stock values to
dive
Stock market investment approaches
Market stag
Large number of shares in
issue market only by
paying money

Market down
This happens when the
prices do not fall as
expected by the bear

Bull market
Constant upward
movement of the
stock market

Bear market
Continuous downward
movement of the stock
market
Functions of Stock market

01

Regulating the business Registering and

in stock exchange and regulating the work of
other security market collective investment,
including mutual funds

04 02

Promoting and regulating Promoting education

self regulatory and training of
organization intermediaries
03 of security market
Stock market quotes

The stock market is a

device for transferring
money from the impatient
to the patient
Thank you