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.

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