Equity Market
Equity Market
Equity Market
Manish Jadhav Mansi Kumar Akshita Salunkhe Sapna Pandey Suraj Gor Ralsha Ravindran Parika Chaudhary Abhirup Ubale Divya Nair Madhuri Sanghare Sushil Padhi
Definition
The market in which shares are issued and traded, either through exchanges or over-the-counter markets. It is also known as the stock It is convenient place where trading in securities is conducted in systematic manner i.e. as per certain rules and regulations. It is an investment intermediary and facilitates economic and industrial development of a country.
MARKET
Primary market
Whenever any company wants to raise money, it can done by floating its shares in the share market.
Secondary market
Once the shares are listed on the market, they can be traded on the exchange. the market where such trading takes place is called as secondary market.
When such shares are issued for the 1st time in the share market, it is called as IPO (Initial Public Offering)
Introduction
Trade = Buy or Sell Trade means to buy and sell in the jargon of the financial markets Trade refers to buying and selling of goods and services for money or money's worth It involves transfer or exchange of goods and services for money or money's worth
Planning
a) Choice of Options Strategy b) Capital Commitment
Entry
Exit
EQUITY SHARES
Equity shares are those shares which are ordinary in the course of company's business. They are also called as ordinary shares. No preference regarding payment of dividend and repayment of capital. Equity shareholders are paid dividend out of the profits made by a company.
FEATURES
Owned capital Nominal value Distinctive number Attached rights Return on shares Transfer of shares Benefit of bonus shares Irredeemable
TYPES
Blue Chip Shares Income Shares Growth shares Cyclical Shares Defensive shares Speculative shares
PREFERENCE SHARES
Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a company bankruptcy, preferred stock shareholders have a right to be paid company assets first. Preference shares typically pay a fixed dividend. Preference share shareholders usually do not have voting rights.
ADRs
A negotiable certificate issued by a U.S. bank representing a specified number of shares (or one share) in a foreign stock that is traded on a U.S. exchange. ADRs are denominated in U.S. dollars, with the underlying security held by a U.S. financial institution overseas. ADRs help to reduce administration and duty costs that would otherwise be levied on each transaction. This is an excellent way to buy shares in a foreign company while realizing any dividends and capital gains in U.S. dollars. However, ADRs do not eliminate the currency and economic risks for the underlying shares in another country. For example, dividend payments in euros would be converted to U.S. dollars, net of conversion expenses and foreign taxes and in accordance with the deposit agreement ADRs are listed on either the NYSE, AMEX or Nasdaq as well as OTC.
GDRs
A bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international bank. The shares trade as domestic shares, but are offered for sale globally through the various bank branches
WARRANTS
Warrant is a certificate giving the holder the right to purchase securities at a stipulated price within a specified time limit or perpetually. Sometimes a warrant is offered with securities as an inducement to buy. The warrant acts as a sweetener because the holder of the warrant has the right but not the obligation of investing in the equity at the indicated rate.
Stock Indices
A stock index or stock market index is a method of measuring the value of a section of the stock market. It is computed from the prices of selected stocks. It is a tool used by investors and financial managers to
iShares MSCI EAFE Index (EFA) BBC Global 30 world stock market index of 30 of the largest companies by stock market value in Europe, Asia and the Americas. provides investment results generally equivalent to publicly traded securities in the European, Australasian and Far Eastern markets. Maintained by Morgan Stanley Capital International.
United States
AMEX Composite Dow Jones Indexes Dow Jones Industrial Average Dow Jones Wilshire 5000 NASDAQ Composite NYSE Composite Russell Indexes Russell 3000 Index S&P 500
Africa
Egypt-Case 30 Morocco - MASI Index South Africa - Johannesburg All Share Index
Canada
S&P/TSX Composite
Europe
Dow Jones Euro Stoxx 50 Middle East FTSEurofirst 300 Index Israel-TA-25 OMX Baltic Index JordanASE Market Capitalization Weighted Index OMX Nordic 40 OmanMSM 30 S&P Europe 350 Belgium-BEL20 Czech Republic-PX Index South America Denmark-OMX Copenhagen 20 iShares S&P Latin America 40 Index (ILF) Finland-OMX Helsinki 25 Argentina-MERVAL France-CAC 40 Brazil-Bovespa Index Germany-DAX Mexico-Indice de Precios y Cotizaciones (IPC) Ireland-ISEQ 20 ItalyS&P/MIB Index NetherlandsAEX Index PolandWarsaw Stock Exchange WIG Index PortugalPSI-20 RussiaMICEX Index RTS Index SpainIBEX 35 SwedenOMX Stockholm 30 Index SwitzerlandSwiss Market Index (SMI) United KingdomFTSE 100 Index (Financial Times Stock Exchange Index)
Types Of Indices
A 'world' or 'global' stock market index. MSCI world S&P global 100. A 'national' index. American S&P 500 Japanese Nikkei 225 Brazilian Ibovespa Russian RTSI Indian SENSEX British FTSE 100 Specialised indices Wilshire US REIT (American Real Estate Investment Trusts) Morgan Stanley biotech index ( Biotechnology Industry ) Linux weekly news ( Linux Operating Environment )
Index Versions
Versions can differ based on how the index components are weighted and on how dividends are accounted for. S&p 500, have 3 multiple versions. Price return, Total return, Net total return. Wilshire 4500 and wilshire 5000 Full capitalization total return, Full capitalization price, Float-adjusted total return, Float-adjusted price, Equal weight. The difference between the full capitalization, float-adjusted, and equal weight versions is in how index components are weighted.
Weighting
Price-weighted index: Dow jones industrial average, Amex major market index, NYSE ARCA tech 100 index.
S&P pure growth style index S&P pure value style index
Country
Netherlands Australia Greece Belgium Bulgaria Hungary France Croatia Germany Ecuador Egypt
Index
AEX S&P/ASX 200 ASE BEL20 SOFIX BUX CAC Croatia Stock Market DAX Ecuador Stock Market EGX30
Estonia
Singapore Italy Finland Hong Kong Spain Brazil Venezuela Iceland
OMX Tallin
STI FTSEMIB HEX25 HSI IBEX IBOV IBVC ICEXI
667
3070 16624 5600 20630 8155 62277 295801 650
0
0.0138 0.0207 0 0.0282 0.0314 0.0051 0.0199 0.0089
-0.0232
0.0015 0.0778 0.018 0.0257 0.0748 0.0539 0.0619 0.0059
0.1747
0.0907 0.1507 0.0372 0.0875 -0.0068 0.1011 0.6604 0.1201
0.2555
0.1602 0.1017 0.0458 0.1191 -0.0481 0.0973 1.5274 0.12
Colombia
Peru Chile
IGBC
IGBVL IGPA
14496
21952 20486
0.0171
0.0664 0.007
0.0173
0.0841 -0.0045
0.0422
0.0628 0.0497
0.1445
0.1273 0.0177
MICEX INDU
1535 13323
0.0396 0
0.0527 0.009
0.0183 0.165
0.095 0.0905
Ireland
South Africa Indonesia Denmark Malaysia South Korea Pakistan Latvia Luxembourg Argentina Mexico Morocco Japan New Zealand Norway Sweden
ISEQ
JALSH JCI KAX KLCI KOSPI KSE100 OMX Riga LUXXX MERVAL MEXBOL MASI NKY NZSE50FG OBX OMX
3303
36550 4257 400 1643 2008 15450 390 1204 2549 40727 9829 9159 3792 417 1115
0.0147
0.022 0.0212 -0.0077 0.0089 0.0283 0.0127 0 0 0.0158 0.0018 -0.0088 0.0179 0.0017 0 0.0293
0.0274
0.0274 0.0227 -0.0013 -0.0042 0.0321 0.0291 0.0307 -0.0255 0.0423 0.0155 -0.0022 0.0003 0.0276 0.0204 0.0268
0.2599
0.1504 0.1314 0.2563 0.1363 0.0764 0.2651 0.0171 0.0812 -0.0322 0.1647 -0.1704 0.0457 0.1275 0.1927 0.1871
0.1383
0.1427 0.1138 0.2292 0.0733 0.0996 0.3615 0.0498 0.0605 0.0351 0.0984 -0.1087 0.0833 0.1581 0.167 0.1287
Philippines
Portugal Czech Republic Qatar Romania Saudi Arabia Slovenia
PSEi
PSI20 PX QE General BET TASI SBITOP
5186
5334 978 8563 4906 7157 537
0
0 0.0097 0.0132 0 0.0072 0.0391
-0.004
0.0682 0.0305 0.0089 0.0085 0.0214 0.0426
0.1893
-0.1429 0.028 0.0077 0.0907 0.1418 -0.1605
0.1862
-0.0292 0.0733 -0.0246 0.1312 0.1152 -0.089
India
SENSEX
18464
0.0247
0.0314
0.0758
0.1947
Thailand
China Slovakia Switzerland Canada Sri Lanka Euro Area Israel Taiwan Tunisia United Arab Emirates Ukraine United Kingdom Austria Poland Turkey
SET
1248
0
0 0 0.0117 0.0222 0.0936 0.0165 0 0 -0.0155 0 0.0486 0.0237 0 0 0
0.0128
-0.0037 -0.0009 0.0062 0.0314 0.1656 0.0402 0.0183 -0.0029 -0.0171 0.0071 -0.036 0.0098 0.0165 0.0213 0.0345
0.1752
-0.1908 -0.1704 0.1652 0.0444 -0.1461 0.1912 0.0376 -0.0068 0.0992 -0.0032 -0.5157 0.106 0.0415 0.088 0.1069
0.2175
-0.0405 -0.1157 0.1049 0.0464 -0.0243 0.12 0.0119 0.0584 0.0852 0.0735 -0.2798 0.0616 0.0995 0.144 0.3284
Shanghai SE Composite 2110 SAX SMI S&P/TSX CSE All Share EURO STOXX 50 TA-25 TWSE TUNINDEX UANBGENL PFTS FTSE 100 WBI WIG XU100 191 6559 12510 5927 2595 1012 7485 5124 2682 385 5916 841 43011 68105
No 1 2 3 4
STOCK EXCHANGE New York Stock Exchange(NYSE) NASDAQ Tokyo stock Exchange London stock exchange
HEADQUARTERS MARKET CAP TRADE VALUE New york City New york City Tokyo London 14242 4687 3325 3266 20161 13552 3972 2871
5
6 7 8 9 10
Shangai
Hong kong Tornoto Sao Paulo
2357
2258 1912 1229 1198 1185
3658
1447 1542 931 1197 1758
American Stock Exchange (AMEX) Boston Options Exchange (BOX) Boston Stock Exchange Chicago Board Options Exchange (CBOE) Chicago Board of Trade (CBOT) Chicago Climate Exchange Chicago Mercantile Exchange (CME) Chicago Stock Exchange (CHX) Currenex (currency exchange) ICE (IntercontinentalExchange) ICE Futures US International Securities Exchange Iowa Electronic Markets
US STOCK EXCHANGES
Minneapolis Grain Exchange (MGEX) Kansas City Board of Trade NASDAQ OMX NASDAQ Stock Market National Stock Exchange New York Mercantile Exchange (NYMEX) New York Stock Exchange (NYSE) OneChicago (OCX) OTC Bulletin Board Philadelphia Stock Exchange (PHLX) Pink Sheets San Diego Stock Exchange U.S. Futures Exchange (USFE
Johannesburg Stock Exchange(JSE) Khartoum Stock Exchange (KSE) Swaziland Stock Exchange(SSX) Dar-Es-Salaam Stock Exchange(DSE) Bourse de Tunis (Tunis Stock Exchange) Uganda Securities Exchange(USE) Lusaka Stock Exchange (LuSE)
1.
Regulator for security market in INDIA. Formed by Govt. of INDIA by SEBI ACT 1992, passed by INDIAN PARLIAMENT Headquartered in Bandra Kurla Complex in Mumbai. Upendra Kumar Sinha is appointed Chairman of SEBI on 18th Feb, 2011. SEBI has to be responsive to the needs of three groups, which constitute the market: the issuers of securities the investors the market intermediaries. SEBI has three functions rolled into one body: quasi-legislative, quasi-judicial and quasi-executive It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity
An institution of the State Council of the People's Republic of China (PRC), with ministry-level rank. Main securities regulator of the PRC. Headquartered in Beijing. CSRC "authority to implement a centralized and unified regulation of the nationwide securities market in order to ensure their lawful operation.
Among its responsibilities include: Formulating policies, laws and regulations concerning markets in securities and futures contracts. Overseeing issuing, trading, custody and settlement of equity shares, bonds, investment funds. Supervising listing, trading and settlement of futures contracts; futures exchanges; securities and futures firms.
Japanese commission which comes under the authority of the Financial Services Agency. SESC was formally established on July 20, 1992 Responsible for ensuring fair transactions in both securities and financial futures markets. The SESC has five objectives, and a division to handle each one: Market Surveillance Compliance Inspection Disclosure Document Inspection Administrative Civil Monetary Penalties Investigation Enforcement-Investigation and Filing Criminal Charges
4.
MAS was set up in 1971 Singapore's central bank and financial regulatory authority.
Administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance.
MAS : Insurance Industry : April 1977, Security Market : September 1984, regulations laid under Securities Industry Act (1973). The MAS has been given powers to act as a banker to and financial agent of the Government. It has also been entrusted to promote monetary stability, and credit and exchange policies conducive to the growth of the economy. MAS does not regulate the monetary system via interest rates to influence the liquidity in the system. Instead it chooses via FX mechanism, so does by intervening SGD market.
5.
Headquartered in Moscow, the FFMS is a part of the Russian Government.
Russian federal executive body regulates, Russian financial markets including Securities issuance and trading Supervision of exchanges, Issuers, Professional market participants and their Self-Regulatory Organisations; The Russian Federation Pension Fund; The State management company.
Major social role of FFMS is to promote public understanding of the Securities laws and their practical application.
6.
It has the right, when it discovers a crime or even the suspicion of a crime, in particular insider trading, market manipulation, illegal operation of banking, financial fraud, incitement to establish stock exchange speculation to forward them to law enforcement authorities. BaFin is in effect a law enforcement agency and can initiate legal action.
7.
Established by the Financial Security Act of 1 August 2003 Stock market regulators in France AMF is an independent public body that is responsible for safeguarding investments in financial instruments and in all other savings and investment as well as maintaining orderly financial markets. The AMF is an independent public body with legal personality and financial autonomy with the duty of: Safeguard investments in financial instruments and in all other savings and investment vehicles Ensure that investors receive material information Maintain orderly financial market
8.
Quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom.
It is structured as a company limited by guarantee and is funded entirely by fees charged to the financial services industry. Main office : Canary Wharf, London and it is referred to as the UK Listing Authority (UKLA). Chairman and CEO are currently Lord Turner of Ecchinswell and Hector Sants The Financial Services and Markets Act 2000 imposed four statutory objectives upon the FSA: Market confidence Financial stability Consumer protection Reduction of financial crime
9.
SEC is a federal agency , was established by United States President Franklin D. Roosevelt in 1934
SEC headquartered in Washington D.C.
Primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets in the United States
The SEC's five main divisions are: Corporation Finance Trading and Markets Investment Management Enforcement Risk, Strategy, and Financial Innovation
2010
75.62
2009
119.35
2008
85.19
2010
189.06
2009
348.58
2008
230.19
2010
114.49
2009
127.08
2008
153.23
INVESTMENT IN % OF GDP
40 37.84
Year 2010 %
35
30 25 20
20.21
15
10
5 0 India United states Europian Union South Africa Japan
YEAR 2010 %
23.77
20 18.48 15 19.95
10 5
0 India
11.58
Japan
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