Produced by: Abduvali Ibn Manan. Stocks are issued by companies in order to raise capitals and are bought by investors in order to acquire a portion of.
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London Stock Exchange
Produced by: Abduvali Ibn Manan
STOCK EXCHANGEStocks are issued by companies in order to raise capitals and are bought by investors in order to acquire a portion of the company.
Stock exchange means anybody of individual whether incorporated or not ,constituted for the purpose of assisting ,regulating or controlling the business of buying ,selling or dealing in securities “.
Largest stock exchanges
IN THE WORLD
LONDON STOCK EXCHANGE NEW YORK STOCK EXCHANGE SHANHAI STOCK EXCHANGE AUSTRALIA STOCK
EXCHANGE TOKYO STOCK EXCHANGE HONG KONG STOCK
EXCHANGE TORONTO STOCK EXCHANGE DEUTSCHE BORSE BM&F BOVESPA NASDAQ OMX STOCK
EXCHANGE
IN INDIA
NATIONAL STOCK EXCHANGE
BOMBAY STOCK EXCHANGE CALCUTTA STOCK
EXCHANGE COCHIN STOCK EXCHANGE MULTI COMMODITY
EXCHANGE DERIVATIVES EXCHANGE OTC EXCHANGE PUNE STOCK EXCHANGE INTERCONNECTS EXCHANGE
Features of stock exchange It is a place where securities issued by companies,
govt. & other authorities are purchased & sold. Its area of operation or geographical jurisdiction is
well defined. Its purpose is to assist & regulate buying & selling in
securities. It operates as per rules 7 guidelines issued by the
Securities & Exchange Board Of India (SEBI).
Importance of stock exchange Stock exchange is a organized securities market which
provides sufficient marketability to shares & debentures.
Stock exchange provide a reasonable measure of safety & fair dealing in the buying & selling of securities.
It constitutes the prime centre through which bulk of investment activities are conducted by individual & institutional operators.
Stock exchange play an important part to speed up the process of economic in the country.
Stock exchange has been described as the pulse of the economy of the country.
Functions of Stock Exchange 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 companies and government to raise funds
from the investors Provide forecasting service
BOMBAY STOCK EXCHANGE
BSE Limited formerly known as Bombay Stock Exchange (BSE) , is the oldest stock exchange in Asia.
It is a stock exchange located on Dalal Street, Mumbai.
The equity market capitalization of the companies listed. on the BSE was US$1 trillion as of December 2012
It the 6th largest stock exchange in Asia and the 14th largest in the world.
BSE was established in 1875 as “The Native Share & Stock Brokers”.
First Stock Exchange in the country to obtain permanent recognition in 1956 from GOI.
Around 4700 Indian companies listed with Stock Exchange.
As of 2012, it is among the five biggest Stock Exchanges in the world in terms of transactions volume. As of March 2012, there are over 5,133 listed Indian companies and over 8,196 scrip's on the stock exchange, the Bombay Stock Exchange has a significant trading volume.
The BSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia.
LONDON STOCK EXCHANGE
It was the first stock exchange established by east India company in 18th century in London. The top gainer of LONDON STOCK EXCHANGE is “Blue chip shares”.
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LONDON STOCK EXCHANGE:◦ Significantly changed by the “Big Bang” of 1986:
ending fixed commissions introduced SEAQ (Stock Exchange Automated
Quotations) attracted trading in non-UK stock
London Stock Exchange - key statistics
Total companiesDomestic: 2,550International: 675
Market capitalisation Main Market: UK listed: US$3,570bnInternational listed: US$4,398bnAIM: US$181bn
Turnover value (Jan-Dec 2007) Main Market: US$8,054bn
AIM: US$150bn
London Stock Exchange
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London and New York exchanges offer optimal profile London has world’s highest reputation for regulation and
governance Principles-based (UK) versus rule-based (US) approach
London has the most liquid equity market in Europe London has the world’s most successful growth market (AIM) London Stock Exchange offers world’s only location for liquid and
transparent trading of GDRs
London combines simple, flexible disclosure with high reputation of regulators
US disclosure regime more prescriptive, exacerbated by need to protect against opportunistic securities litigation
London offers rapid turnaround by regulators, and limits the time regulators can take to approve offer documents
US: SEC review periods longer, with no certainty on turnaround time
AIM offers potentially shorter transaction timetable
Timing
Disclosure
Trading
Cost-benefit analysis favours London
Profile
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New York Listing• Higher cost• Slower to market• Higher risk• Sarbanes Oxley• Section 404• Class actions
London Listing• Access to global capital• Lower cost• Lower risk• Faster to market• Intelligent regulation
The world’s capital market
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