Top Players in stock market

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Players in Stock Market

05/02/2023 Nishigandha Berde & Charmi Chheda (MAPR)

What is Stock Market?• Stock is where Shares in corporations are issued and

traded.

• Is one of the most vital component of a free market economy.

• It is also known as Equity market

• It performs two important functions

• It can be split into two main sections- Primary market and the secondary market.

05/02/2023 2Nishigandha Berde & Charmi Chheda (MAPR)

Key strengths of Stock market India

• Trading of India stock market take place in two Stock Exchanges – Bombay Stock Exchange and National Stock Exchange.

• BSE has been existence since 1875 and NSE was founded in 1992 and started trading in 1994.

• Both of the exchanges follow same trading mechanism , trading hours and settlement process.

• The market regular and Securities and Exchange board of India – plays an important role in the management of the stock market India.


• Sensex and the S &P CNX Nifty are the India’s main market indexes.

• Sensex- is a stock market index of 30 well established and financially sound companies listed in BSE.

• Nifty – is the indicator of 50 major companies on the NSE.

• Investors , Issuers , Intermediaries , Regulators are important element of India Stock market.


How Does Share market works?


• A company get listed in the Primary market through an Initial Public offering and further the stocks issued in the Primary market are allotted to investors .

• The stocks issued are traded by the investors in the secondary market.

•Stock brokers and brokerage firms – as a intermediary between investors and Stock exchange.


How the order to the exchange processed further?


How to invest in shares?• There are 5 steps which to be followed to invest

money in share market .



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There are over 60 major stock exchanges in the world with market valuation of total $69 trillion

Top stock market players in the world

• New York Stock Exchange

• National Association of Securities Dealers Automated Quotations

• London Stock Exchange group

• Japan Stock Exchange

• Shanghai Stock Exchange

• Hong Kong Stock Exchange


New York Stock Exchange:

Leading Stock Exchange in the world.

Founded on 17th May 1792

Is also known as Big Board

NYSE is owned by Intercontinental Exchange and regulated by Securities and Exchange commission.


• NASDAQ Stock Exchange: NASDAQ was created by National Association Securities Dealers.

Is the second largest exchange in the world by market capitalization.

It was founded in 4th February 1971.

Worlds 1st electronic Stock market.

The term “NASDAQ”is also used to refer to the Nasdaq Composite, an index of more than 3,000 stocks listed on the Nasdaq exchange that includes the world’s foremost technology and biotech giants such as Apple, Google, Microsoft, Oracle, Amazon, Intel and Amgen.

London Stock Exchange:

Primary Stock in U.K and largest in Europe

Originated in 1773, the regional exchanges where merged in 1973 to form the Stock Exchange of Great Britain and Ireland , later renamed London Stock Exchange.

Most international of all stock exchanges with 350 companies from more than 50 countries.


Japan Stock Exchange Group :

An Asian financial services corporation that operates multiple securities exchanges including Tokyo Stock Exchange and Osaka Securities Exchange.

It was formed by the merger of the two companies on January 1, 2013.

The group provides and operates a marketplace for the trading of equities, futures, and options.


Shanghai Stock Exchange:

Shanghai Stock Exchange is the world's 5th largest stock market.

Is not entirely open to Foreign investors

Shanghai Clearing House provides security for financial market participants, and efficient clearing services development purposes.


Hong Kong Stock Exchange:

It origins to the founding of China's first formal securities market, the Association of Stockbrokers in Hong Kong, in 1891.

A second market opened in 1921, and in 1947 the two merged to form the Hong Kong Stock Exchange.

Is one of the larger markets in Asia

The Hong Kong Stock Exchange merged with the Hong Kong Futures Exchange and the Hong Kong Securities Clearing Company in 2000 to form Hong Kong Exchanges and Clearing Ltd., a publicly traded company.


People• Optimistic (Bull)

• Pessimistic (Bear)

• Stag


Bull Market• A bull market is where people are finding jobs,

economy is rising, GDP is increasing & stock market is increasing.

• Number of share traded and companies entering the stock market is also high.

• Bull markets are characterized by optimism, investor confidence and expectations that strong results should continue.

• Bull does not last long and is also quiet risky and prices of stock in this period rise continuously.


• Ideally, you'd like to buy the stock in the lower range and collect on earnings as the stock continues to soar

• Any losses are viewed as minimal or temporary within a bull market.

• For example, Facebook has a bull market where it’s stock are continuously increasing. When it was started the stock price of FB was just $38 but today it has increased to $125.



• Another example can be Gold prices in India. Since 90s they have been increasing since 1964 where price was ₹ 63.25 to current rate of ₹31K.


Bear Market• It is period when there is recession, stocks are

falling & economy is bad.

• If the market falls by 20% it has entered into the bear market period.

• Investors face tough choice to buy profitable stocks. If a person is pessimistic, believing that stocks are going to drop, he or she is called a "bear" and said to have a "bearish outlook".


• Investors can make gains in a bear market by short selling. This technique involves selling borrowed shares and buying them back at lower prices.

• Bear Market example can be Viacom Inc. which was as high as $85 but fell to $41 in 3 years of period.



Difference


Stag Market• A stag specifically refers to a speculator who buys

and sells stocks in short time frame's to make quick profits.

• A stag investor assumes that the price of a stock will rapidly increase over the short-term, within the first few hours or days. Short term profit and low risk business.

• Stag is a smart player but sometimes it involves risks too.



Duration of Bull & Bear markets in India

• The equity market in India is volatile because Indian equities tend to move strongly upward within a short period only to crash violently quickly as well. Reasons for such volatility:

1. The debt market (bond market) is undeveloped and is very tiny. As a result much of the capital flows into equities driving volatility.

2. Retail investor participation in India is still very low. By one estimate it is just 3.3%. As a result, major investors such as institutions, mutual funds, wealthy individuals control the direction of the market.


3. Indian companies, including large-caps, traditionally have low dividend yields. The dividend yield has been less than 1.50% for many decades. Due to the low payouts, investors buy stocks hoping for price appreciation rather than yields. So during bull markets investors go rush into stocks driving prices ever higher while during bear markets the low yields on stocks offer not much help to hold on to them or depend on them for a steady stream of income.


•Here it clearly shows that from May 2003- Jan 2008, Indian markets rose as high as 622%•It fell to -62% the same year.•Also every eight year sensex has declined by more than 50%.


Duration of Bull & Bear market in the World (Since 1929)

A BULL MARKET is defined by the S&P500 Rising at least 20%. Here is the upshot of BULL MARKET HISTORY:

• Since 1929 there have been 25 BULL Markets

• The average Bull Market period lasted 31 months

• The average Bull Market gain was +104% (The smallest gain was +21% in 2001, and the largest gain was +582% registered in period 1987-2000)

• Average frequency of Bull Markets is every 3.4 years


• The present Bull Market is quite long with 7 years to date vs. the 3.4 year average since 1929.

• The bull market that began in WW II and lasted well into the 1950s had duration of 181 months for a colossal gain of 935.8 percent. Golden years indeed. Again, the subsequent bear market was a minor event of only six months for a decline of 22.3 percent.

• The bull market of the 1960s was less mighty than the 1950s, rising only 143.7 percent over 77 months with an average annual gain of 14.9 percent.



A BEAR MARKET is defined by the S&P500 falling at least 20%. Here is the upshot of BEAR MARKET HISTORY:

• Since 1929 there have been 25 Bear Markets

• The average Bear Market loss was -35% (The smallest loss was -21% in 1949, and the largest loss was -62% registered in 1932)

• Average frequency of Bear Markets since 1929 is every 3.4 years


• The last Bear Market ended in March 2009. Therefore, another Stocks Bear Market looms - as the present BULL MARKET is quite long in the tooth with 7 years to date.

• The average bear market has seen losses of 23% and has lasted 14 months.

• Two out of the three worst bear markets have happened since 2000 (stocks fell 43% from 2000-early 2003 and the market declined 51% from 2008-2009).




Thank you



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Sources• Google• NSE/BSE• Various news articles• NASDAQ• Different websites

Economy & Finance

Top Players in stock market