7/30/2019 Stock Exchange Market in India
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Stock exchangeFrom Wikipedia, the free encyclopedia
Financial markets
Public market
Exchange
Securities
Bond market
Bond valuation
Corporate bond
Fixed income
Government bond
High-yield debt
Municipal bond
Stock market
Common stock
Preferred stock
Registered share
Stock
Stock certificate
Stock exchange
Voting share
Derivatives market
Credit derivative
Futures exchange
Hybrid security
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Securitization
Over-the-counter
Forwards
Options
Spot market
Swaps
Foreign exchange
Currency
Exchange rate
Other markets
Commodity market Money market
Reinsurance market
Real estate market
Practical trading
Clearing house
Financial market participants
Financial regulation
Financeseries
Banks and banking
Corporate finance
Personal finance
Public finance
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A stock exchange is a form ofexchangewhich provides services forstock brokersandtradersto
tradestocks,bonds, and othersecurities. Stock exchanges also provide facilities for issue and redemption of
securities and other financial instruments, and capital events including the payment of income anddividends.
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Securities traded on a stock exchange includesharesissued by companies,unit trusts,derivatives, pooled
investment products andbonds.
To be able to trade a security on a certain stock exchange, it must be listed there. Usually, there is a central
location at least for record keeping, but trade is increasingly less linked to such a physical place, as modern
markets areelectronic networks, which gives them advantages of increased speed and reduced cost of
transactions. Trade on an exchange is by members only.
The initial offering of stocks and bonds to investors is by definition done in theprimary marketand subsequent
trading is done in thesecondary market. A stock exchange is often the most important component of astock
market. Supply and demand in stock markets are driven by various factors that, as in allfree markets, affect the
price of stocks (seestock valuation).
There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently
traded on the exchange. Such trading is said to be off exchange orover-the-counter. This is the usual waythatderivativesandbondsare traded. Increasingly, stock exchanges are part of a global market for securities.
Contents
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1 History
2 Role of stock exchanges
o 2.1 Raising capital for businesses
2.1.1 Common forms of capital raising
2.1.1.1 Going public
2.1.1.2 Limited partnerships
2.1.1.3 Venture capital
2.1.1.4 Corporate partners
o 2.2 Mobilizing savings for investment
o 2.3 Facilitating company growth
o 2.4 Profit sharing
o 2.5 Corporate governance
o 2.6 Creating investment opportunities for small investors
o 2.7 Government capital-raising for development projects
o 2.8 Barometer of the economy
3 Speculation
4 Major stock exchanges
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5 Listing requirements
o 5.1 Requirements by stock exchange
6 Ownership
7 Other types of exchanges
8 See also
9 References
10 External links
[edit]History
Among many other things, theCode of Hammurabirecorded interest-bearing loans.
Securities markets took centuries to develop.[1]The idea of debt dates back to theancient world, as evidenced
for example by ancientMesopotamianclay tablets recording interest-bearing loans. There is little consensus
among scholars as to when corporatestockwas first traded. Some see the key event as theDutch East India
Company's founding in 1602, while others point to earlier developments. Economist Ulrike Malmendier of
theUniversity of California at Berkeleyargues that a share market existed as far back asancient Rome.
In theRoman Republic, which existed for centuries before theEmpirewas founded, there were societates
publicanorum, organizations of contractors or leaseholders who performed temple-building and other services
for the government. One such service was the feeding of geese on the Capitoline Hill as a reward to the birds
after their honking warned of a Gallic invasion in 390 B.C. Participants in such organizations hadpartes or
shares, a concept mentioned various times by the statesman and oratorCicero. In one speech, Cicero
mentions "shares that had a very high price at the time." Such evidence, in Malmendier's view, suggests the
instruments were tradable, with fluctuating values based on an organization's success. The societas declined
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into obscurity in the time of the emperors, as most of their services were taken over by direct agents of the
state.
Tradablebondsas a commonly used type of security were a more recent innovation, spearheaded by the
Italian city-states of the latemedievaland earlyRenaissanceperiods.
In 1171, the authorities of theRepublic of Venice, concerned about their war-depleted treasury, drew a forced
loan from the citizenry. Such debt, known asprestiti, paid 5 percent interest per year and had an indefinite
maturity date. Initially regarded with suspicion, it came to be seen as a valuable investment that could be
bought and sold. The bond market had begun.
From 1262 to 1379, Venice never missed an interest payment, solidifying the credibility of the new instruments.
Other Italian city-states such as Florence and Genoa became bond issuers as well, often as a means of paying
for warfare. Bonds were traded widely in Italy and beyond, a business facilitated by bankers such as
theMedicis.
War between Venice and Genoa resulted in suspension ofprestitiinterest payments in the early 1380s, and
when the market was restored, it was at a lower interest rate. Venice's bonds traded at steep discounts for
decades thereafter. Other blows to financial stability resulted from theHundred Years War, which caused
monarchs of France and England to default on debts to Italian banks, and theBlack Death, which ravaged
much of Europe. Still, the idea of debt as a tradable investment endured.
As with bonds, the concept of stock developed gradually. Some scholars place its origins as far back as ancient
Rome. Partnership agreements dividing ownership into shares date back at least to the 13th century, again
with Italian city-states in the vanguard. Such arrangements, however, typically extended only to a handful of
people and were of limited duration, as with shipping partnerships that applied only to a single sea voyage.
House Ter Beurze inBruges, Belgium.
The forefront of commercial innovation eventually shifted from Italy to northern Europe. TheHanseatic League,
an alliance of mercantile cities such asBrugesandAntwerp, operated counting houses to expedite trade.
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By the late 1500s, British merchants were experimenting with joint-stock companies intended to operate on an
ongoing basis; one such was theMuscovy Company, which sought to wrest trade with Russia away from
Hanseatic dominance.
The next big step occurred in the Netherlands. In 1602, the Dutch East India Company was formed as a joint-
stock company based in six locations with shares that were readily tradable. The stock market had begun, but
since stocks were not allowed to be traded with multiple addresses for a company, the stocks were
redesignated as coming just fromAmsterdam.
Abondissued by theDutch East India Company, dating from 7 November 1623, for the amount of 2,400florins.
The Dutch East India Company, formed to build up the spice trade, operated as a colonial ruler in what's now
Indonesia and beyond, a purview that included conducting military operations against recalcitrant natives and
competing colonial powers. Control of the company was held tightly by its directors, with ordinary shareholders
not having much influence on management or even access to the company's accounting statements.
However, shareholders were rewarded well for their investment. The company paid an average dividend of
over 16 percent per year from 1602 to 1650. Financial innovation in Amsterdam took many forms. In 1609,
investors led by oneIsaac Le Maireformed history's first bear syndicate, but their coordinated trading had only
a modest impact in driving down share prices, which tended to be robust throughout the 17th century. By the
1620s, the company was expanding its securities issuance with the first use of corporate bonds.
The Dutch West India Company was formed in 1621, bringing a new issuer to the burgeoning securities
market. Amsterdam's growth as a financial center survived the tulip mania of the 1630s, in which contracts for
the delivery of flower bulbs soared wildly and then crashed. New techniques and instruments proliferated for
securities as well as commodities, including options, repos and margin trading.[2]
Joseph de la Vega, also known as Joseph Penso de la Vega and by other variations of his name, was an
Amsterdam trader from a Spanish Jewish family and a prolific writer as well as a successful businessman in
17th-century Amsterdam. His 1688 book Confusion of Confusions explained the workings of the city's stock
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market. It was the earliest book aboutstock trading, taking the form of a dialogue between a merchant, a
shareholder and a philosopher, the book described a market that was sophisticated but also prone to excesses,
and de la Vega offered advice to his readers on such topics as the unpredictability of market shifts and the
importance of patience in investment.
The year that de la Vega published also brought an event that helped spread financial techniques and talent
from Amsterdam to London. This was the "glorious revolution," in which Dutch rulerWilliam of Orangealso
ascended to England's throne. William sought to modernize England's finances to pay for its wars, and thus the
kingdom's first government bonds were issued in 1693 and theBank of Englandwas set up the following year.
Soon thereafter, English joint-stock companies began going public.
London's first stockbrokers, however, were barred from the old commercial center known as the Royal
Exchange, reportedly because of their rude manners. Instead, the new trade was conducted from coffee
houses alongExchange Alley. By 1698, a broker named John Castaing, operating out ofJonathan's Coffee
House, was posting regular lists of stock and commodity prices. Those lists mark the beginning of theLondon
Stock Exchange.
One of history's greatestfinancial bubblesoccurred in the next few decades. At the center of it were theSouth
Sea Company, set up in 1711 to conduct English trade with South America, and theMississippi Company,
focused on commerce with France's Louisiana colony and touted by transplanted Scottish financierJohn Law,
who was acting in effect as France's central banker. Investors snapped up shares in both, and whatever else
was available. In 1720, at the height of the mania, there was even an offering of "a company for carrying out an
undertaking of great advantage, but nobody to know what it is."
By the end of that same year, share prices were collapsing, as it became clear that expectations of imminent
wealth from the Americas were overblown. In London, Parliament passed theBubble Act, which stated that
only royally chartered companies could issue public shares. In Paris, Law was stripped of office and fled the
country. Stock trading was more limited and subdued in subsequent decades. Yet the market survived, and by
the 1790s shares were being traded in the young United States.
[edit]Role of stock exchanges
New York Stock Exchange, New York City
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London Stock Exchange, theCity of London
Tokyo Stock Exchange, Tokyo
Hong Kong Stock Exchange, Hong Kong
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Shanghai Stock Exchange, Shanghai
Toronto Stock Exchange, Toronto
Bolsa de Madrid, Madrid
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Bombay Stock Exchange,Mumbai
So Paulo Stock Exchange, So Paulo
Australian Securities Exchange's Sydney exchange centre, Sydney
Frankfurt Stock Exchange, Frankfurt
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Paris Stock Exchange, Paris
Warsaw Stock Exchange,Warsaw
SWX Swiss Exchange, Zurich
Mexican Stock Exchange, Mexico City
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Borsa Italiana, Milan
Stock exchanges have multiple roles in the economy. This may include the following:[3]
[edit]Raising capital for businesses
The Stock Exchange providecompanieswith the facility to raisecapitalfor expansion through sellingsharesto
the investing public.[4]
[edit]Common forms of capital raising
Besides the borrowing capacity provided to an individual or firm by thebanking system, in the form ofcreditor
a loan, there are four common forms of capital raising used by companies and entrepreneurs. Most of these
available options, might be achieved, directly or indirectly, involving a stock exchange.
[edit]Going public
Capital intensivecompanies, particularlyhigh techcompanies, always need to raise high volumes of capital in
their early stages. For this reason, the public market provided by the stock exchanges has been one of the
most important funding sources for many capital intensivestartups. After the 1990s and early-2000s hi-tech
listed companies' boom and bust in the world's major stock exchanges, it has been much more demanding for
the high-tech entrepreneur to take his/her company public, unless either the company already has products in
the market and is generating sales and earnings, or the company has completed advanced promising clinical
trials, earned potentially profitable patents or conducted market research which demonstrated very positive
outcomes. This is quite different from the situation of the 1990s to early-2000s period, when a number of
companies (particularly Internet boom and biotechnology companies) went public in the most prominent stock
exchanges around the world, in the total absence of sales, earnings and any well-documented promising
outcome. Anyway, every year a number of companies, including unknown highly speculative and financially
unpredictable hi-tech startups, are listed for the first time in all the major stock exchanges there are even
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specialized entry markets for this kind of companies orstock indexestracking their performance (examples
include theAlternext,CAC Small,SDAX,TecDAX, or most of thethird marketcompanies).
[edit]Limited partnerships
A number of companies have also raised significant amounts of capital throughR&Dlimited partnerships. Taxlaw changes that were enacted in 1987 in the United States changed the tax deductibility of investments in
R&D limited partnerships. In order for a partnership to be of interest to investors today, thecash on cash
returnmust be high enough to entice investors. As a result, R&D limited partnerships are not a viable means of
raising money for most companies, specially hi-tech startups.
[edit]Venture capital
A third usual source of capital for startup companies has beenventure capital. This source remains largely
available today, but the maximum statistical amount that the venture company firms in aggregate will invest in
any one company is not limitless (it was approximately $15 million in 2001 for a biotechnology company).[5]
At
those level, venture capital firms typically become tapped-out because the financial risk to any one partnership
becomes too great.
[edit]Corporate partners
A fourth alternative source of cash for a private company is acorporate partner, usually an established
multinational company, which provides capital for the smaller company in return for marketing rights, patent
rights, or equity. Corporate partnerships have been used successfully in a large number of cases.
[edit]Mobilizing savings for investment
When people draw their savings and invest in shares (through anIPOor theissuance of new company
sharesof an already listed company), it usually leads torationalallocation of resources because funds, which
could have been consumed, or kept in idledepositswith banks, are mobilized and redirected to help
companies' management boards finance their organizations. This may promote business activity with benefits
for several economic sectors such as agriculture, commerce and industry, resulting in stronger economic
growth and higherproductivitylevels of firms. Sometimes it is very difficult for the stock investor to determine
whether or not the allocation of those funds is in good faith and will be able to generate long-term company
growth, without examination of a company'sinternal auditing.
[edit]Facilitating company growth
Companies view acquisitions as an opportunity to expandproduct lines, increase distribution channels, hedge
against volatility, increase itsmarket share, or acquire other necessary businessassets. Atakeoverbid or
amergeragreement through thestock marketis one of the simplest and most common ways for a company to
grow by acquisition or fusion.
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lic_Offeringhttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=9http://en.wikipedia.org/w/index.php?title=Corporate_partner&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=8http://en.wikipedia.org/wiki/Stock_exchange#cite_note-5http://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=7http://en.wikipedia.org/wiki/Cash_on_cash_returnhttp://en.wikipedia.org/wiki/Cash_on_cash_returnhttp://en.wikipedia.org/wiki/Limited_partnershiphttp://en.wikipedia.org/wiki/R%26Dhttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=6http://en.wikipedia.org/wiki/Third_markethttp://en.wikipedia.org/wiki/TecDAXhttp://en.wikipedia.org/wiki/SDAXhttp://en.wikipedia.org/wiki/CAC_Smallhttp://en.wikipedia.org/wiki/Alternexthttp://en.wikipedia.org/wiki/Stock_index7/30/2019 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[edit]Profit sharing
Both casual and professionalstock investors, as large asinstitutional investorsor as small as an ordinary
middle-class family, throughdividendsandstock priceincreases that may result incapital gains, share in the
wealth of profitable businesses. Unprofitable and troubled businesses may result incapital lossesfor
shareholders.
[edit]Corporate governance
By having a wide and varied scope of owners, companies generally tend to improve management standards
andefficiencyto satisfy the demands of these shareholders, and the more stringent rules for public
corporations imposed by public stock exchanges and the government. Consequently, it is alleged that public
companies (companies that are owned by shareholders who are members of the general public and trade
shares on public exchanges) tend to have better management records thanprivately held companies(those
companies where shares are not publicly traded, often owned by the company founders and/or their families
and heirs, or otherwise by a small group of investors).
Despite this claim, some well-documented cases are known where it is alleged that there has been
considerable slippage incorporate governanceon the part of some public companies. Thedot-com bubblein
the late 1990s, and thesubprime mortgage crisisin 200708, are classical examples of corporate
mismanagement. Companies likePets.com(2000),Enron
Corporation(2001),One.Tel(2001),Sunbeam(2001),Webvan(2001),Adelphia(2002),MCI
WorldCom(2002),Parmalat(2003),American International Group(2008),Bear Stearns(2008),Lehman
Brothers(2008),General Motors(2009) andSatyam Computer Services(2009) were among the most widely
scrutinized by the media.
However, when poor financial, ethical or managerial records are known by thestock investors, the stock and
the company tend to lose value. In the stock exchanges, shareholders of underperforming firms are often
penalized by significant share price decline, and they tend as well to dismiss incompetent management teams.
[edit]Creating investment opportunities for small investors
As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large
and smallstock investorsbecause a person buys the number of shares they can afford. Therefore the Stock
Exchange provides the opportunity for small investors to own shares of the same companies as large investors.
[edit]Government capital-raising for development projects
Governments at various levels may decide to borrow money to finance infrastructure projects such as sewage
and water treatment works or housing estates by selling another category ofsecuritiesknown asbonds. These
bonds can be raised through the Stock Exchange whereby members of the public buy them, thus loaning
money to the government. The issuance of such bonds can obviate the need, in the short term, to directly tax
http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=11http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=11http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=11http://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Institutional_investorshttp://en.wikipedia.org/wiki/Institutional_investorshttp://en.wikipedia.org/wiki/Institutional_investorshttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Stock_pricehttp://en.wikipedia.org/wiki/Stock_pricehttp://en.wikipedia.org/wiki/Stock_pricehttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Capital_losshttp://en.wikipedia.org/wiki/Capital_losshttp://en.wikipedia.org/wiki/Capital_losshttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=12http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=12http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=12http://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Corporate_governancehttp://en.wikipedia.org/wiki/Corporate_governancehttp://en.wikipedia.org/wiki/Corporate_governancehttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Pets.comhttp://en.wikipedia.org/wiki/Pets.comhttp://en.wikipedia.org/wiki/Pets.comhttp://en.wikipedia.org/wiki/Enron_Corporationhttp://en.wikipedia.org/wiki/Enron_Corporationhttp://en.wikipedia.org/wiki/Enron_Corporationhttp://en.wikipedia.org/wiki/Enron_Corporationhttp://en.wikipedia.org/wiki/One.Telhttp://en.wikipedia.org/wiki/One.Telhttp://en.wikipedia.org/wiki/One.Telhttp://en.wikipedia.org/wiki/Sunbeam_Productshttp://en.wikipedia.org/wiki/Sunbeam_Productshttp://en.wikipedia.org/wiki/Sunbeam_Productshttp://en.wikipedia.org/wiki/Webvanhttp://en.wikipedia.org/wiki/Webvanhttp://en.wikipedia.org/wiki/Webvanhttp://en.wikipedia.org/wiki/Adelphia_Communications_Corporationhttp://en.wikipedia.org/wiki/Adelphia_Communications_Corporationhttp://en.wikipedia.org/wiki/Adelphia_Communications_Corporationhttp://en.wikipedia.org/wiki/MCI_WorldComhttp://en.wikipedia.org/wiki/MCI_WorldComhttp://en.wikipedia.org/wiki/MCI_WorldComhttp://en.wikipedia.org/wiki/MCI_WorldComhttp://en.wikipedia.org/wiki/Parmalathttp://en.wikipedia.org/wiki/Parmalathttp://en.wikipedia.org/wiki/Parmalathttp://en.wikipedia.org/wiki/American_International_Grouphttp://en.wikipedia.org/wiki/American_International_Grouphttp://en.wikipedia.org/wiki/American_International_Grouphttp://en.wikipedia.org/wiki/Bear_Stearnshttp://en.wikipedia.org/wiki/Bear_Stearnshttp://en.wikipedia.org/wiki/Bear_Stearnshttp://en.wikipedia.org/wiki/Lehman_Brothershttp://en.wikipedia.org/wiki/Lehman_Brothershttp://en.wikipedia.org/wiki/Lehman_Brothershttp://en.wikipedia.org/wiki/Lehman_Brothershttp://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganizationhttp://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganizationhttp://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganizationhttp://en.wikipedia.org/wiki/Satyam_Computer_Serviceshttp://en.wikipedia.org/wiki/Satyam_Computer_Serviceshttp://en.wikipedia.org/wiki/Satyam_Computer_Serviceshttp://en.wikipedia.org/wiki/Stock_investorshttp://en.wikipedia.org/wiki/Stock_investorshttp://en.wikipedia.org/wiki/Stock_investorshttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=13http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=13http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=13http://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=14http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=14http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=14http://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Securitieshttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=14http://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=13http://en.wikipedia.org/wiki/Stock_investorshttp://en.wikipedia.org/wiki/Satyam_Computer_Serviceshttp://en.wikipedia.org/wiki/General_Motors_Chapter_11_reorganizationhttp://en.wikipedia.org/wiki/Lehman_Brothershttp://en.wikipedia.org/wiki/Lehman_Brothershttp://en.wikipedia.org/wiki/Bear_Stearnshttp://en.wikipedia.org/wiki/American_International_Grouphttp://en.wikipedia.org/wiki/Parmalathttp://en.wikipedia.org/wiki/MCI_WorldComhttp://en.wikipedia.org/wiki/MCI_WorldComhttp://en.wikipedia.org/wiki/Adelphia_Communications_Corporationhttp://en.wikipedia.org/wiki/Webvanhttp://en.wikipedia.org/wiki/Sunbeam_Productshttp://en.wikipedia.org/wiki/One.Telhttp://en.wikipedia.org/wiki/Enron_Corporationhttp://en.wikipedia.org/wiki/Enron_Corporationhttp://en.wikipedia.org/wiki/Pets.comhttp://en.wikipedia.org/wiki/Subprime_mortgage_crisishttp://en.wikipedia.org/wiki/Dot-com_bubblehttp://en.wikipedia.org/wiki/Corporate_governancehttp://en.wikipedia.org/wiki/Privately_held_companyhttp://en.wikipedia.org/wiki/Efficiency_(economics)http://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=12http://en.wikipedia.org/wiki/Capital_losshttp://en.wikipedia.org/wiki/Capital_gainhttp://en.wikipedia.org/wiki/Stock_pricehttp://en.wikipedia.org/wiki/Dividendhttp://en.wikipedia.org/wiki/Institutional_investorshttp://en.wikipedia.org/wiki/Stock_investorhttp://en.wikipedia.org/w/index.php?title=Stock_exchange&action=edit§ion=117/30/2019 Stock Exchange Market in India
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citizens to finance developmentthough by securing such bonds with the full faith and credit of the government
instead of with collateral, the government must eventually tax citizens or otherwise raise additional funds to
make any regular coupon payments and refund the principal when the bonds mature.