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CHAPTER-1
INTRODUCTION
1
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INTRODUCTION:
1.1 About the industry
INDUSTRY OERIE!:
Stock exchanges to some extent play an important role as indicators, reflecting to the
performance of the countrys economic state of health. Stock market is a place where
securities are sold and bought. It is exposed to a high degree of volatility; prices fluctuate
within minutes and are determined by the demand and supply of stocks at a given period of
time. Stock brokers are the ones who buy and sell securities, shares on behalf of individuals
and institutions for some commission.
he securities market has two interdependent and inseparable segments the ne" issue
#$ri%&ry %&r'et(and the sto)' #se)ond&ry %&r'et!.
Pri%&ry %&r'et"
he primary market is the part of the capital markets that deals with the issuance of new
securities companies; government or public sectors institutions can obtain funding through
the sales of anew stock or bond issue. his is typical done through a syndicate of securities
dealers .the process of selling new issues to investor is called underwriting. In the case of a
new stock issue, this sale is an initial public offering #I$%!. &ealers earn a commission that is
built into the price of the security offering. hrough it can be found in the prospectus.
In primary market certain companies issue their shares directly to the public, collect
application and after sorting out the good issues, they put in their applications. he share
brokers get their brokerage on the transactions made.
Se)ond&ry %&r'et:
he secondary market is that market in which trading is done of securities that have already
been issued in an initial private or public offering. he secondary market comprises of
brokerage that a broker earns in the buying and selling of companies that are listed in the
stock exchange. hese stock brokers are in charge of the conformation and carrying out of
transactions. %rders are taken and executed on behalf of the clients. he fluctuation of rates
'
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in the share market makes the activity in a trade market a dynamic process. It is necessary for
a brokers to have ade(uate knowledge about the economic and political factors as they affect
the share market.
S)*I" S)*I #S)+-II)S /& )0+/2) *%-& %3 I/&I! is the authori4ed body
which regulates and controls all the operations of the stock exchanges and other financial
institutions in India.
It was established in the year 1566 and given statutory powers on 1'
pril 155' through the S)*I ct, 155'. Its main role is to aware the people about stock
market trading and to provide better 7 safe environment for trading. he past performances
in the capital market especially the securities scam by 8arshad 9ehta has led to tightening
of the operations by S)*I. In addition the international trading and investment exposure has
made it imperative to better operational efficiency. :ith the view to improve, discipline and
bring greater transparency in this sector, constant efforts are being made and to a certain
extent improvements are made.
HISTORY O* INDUSTRY:
he initial emergence of stock markets in the world can be traced back over hundreds of
years to when industriali4ation and innovation took hold in )urope. he rapid economic
growth in the past one hundred years gave rise to the explosive development of stock
markets. t the same time the enhancement of stock markets has played an important role in
promoting the growth of the world economy. he modern market economy depends to agreater extent on a soundly operated stock market.
In 1'th century 3rance, the courretiers de change were concerned with managing and
regulating the debts of agricultural communities on behalf of the banks. *ecause these men
also traded with debts, they could be called the first brokers. common misbelief is that in
late 1th century *rugescommodity traders gathered inside the house of a man called 5 they became the ?*rugse *eurse?, institutionali4ing what had been,
until then, an informal meeting, but actually, the family
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inntwerpwhere those gatherings occurred;the
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Common forms of capital raising
*esides the borrowing capacity provided to an individual or firm by the banking system, in
the form ofcreditor a loan, there are four common forms of capital rising used by companies
and entrepreneurs. 9ost of these available options might be achieved, directly or indirectly,
involving a stock exchange.
+oin, $ubi)
+apital intensive companies, particularly high techcompanies, always need to raise high
volumes of capital in their early stages. 3or this reason, the public market provided by the
stock exchanges has been one of the most important funding sources for many capital
intensive startups. fter the 155>s and earlyD'>>>s hiDtech listed companiesF boom and bust
in the worldFs maCor stock exchanges, it has been much more demanding for the highDtech
entrepreneur to take hisher company public, unless either the company already has productsin 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. his is (uite different from the situation of the
155>s to earlyD'>>>s 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 wellDdocumented promising outcome.
nyway, every year a number of companies, including unknown highly speculative and
financially unpredictable hiDtech startups, are listed for the first time in all the maCor stock
exchanges E there are even speciali4ed entry markets for this kind of companies or stock
indexes tracking their performance #examples include the lternext, ++ Small, S&0,
ec&0, or most of the third marketcompanies!.
i%ited $&rtnershi$s
number of companies have also raised significant amounts of capital through -7&limited
partnerships. ax law changes that were enacted in 156J in the nited States changed the tax
@
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deductibility of investments in -7& limited partnerships. In order for a partnership to be of
interest to investors today, thecash on cash returnmust be high enough to entice investors. s
a result, -7& limited partnerships are not a viable means of raising money for most
companies, specially hiDtech startups.
enture )&$it&
third usual source of capital for startup companies has been venture capital. his source
remains largely available today, but the maximum statistical amount that the venture
company firms in aggregate will invest in any one company is not limitless #it was
approximately K1@ million in '>>1 for a biotechnology company!. LBMt those level, venture
capital firms typically become tappedDout because the financial risk to any one partnership
becomes too great.
Cor$or&te $&rtners
fourth alternative source of cash for a private company is a corporate partner, usually anestablished multinational company, which provides capital for the smaller company in return
for marketing rights, patent rights, or e(uity. +orporate partnerships have been used
successfully in a large number of cases.
/obii0in, s&in,s 2or inest%ent
:hen people draw their savings and invest in shares #through an I$%or theissuance of new
company shares of an already listed company!, it usually leads to rational allocation of
resources because funds, which could have been consumed, or kept in idle deposits with
banks, are mobili4ed and redirected to help companiesF management boards finance their
organi4ations. his may promote business activity with benefits for several economic sectors
such as agriculture, commerce and industry, resulting in stronger economic growth and higher
productivitylevels 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 longD
term company growth, without examination of a companyFs internal auditing.
B
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*&)iit&tin, )o%$&ny ,ro"th
+ompanies view ac(uisitions as an opportunity to expandproduct lines, increase distribution
channels, hedge against volatility, increase its market share, or ac(uire other necessary
business assets.takeoverbid or amerger agreement through the stock market is one of the
simplest and most common ways for a company to grow by ac(uisition or fusion.
Pro2it sh&rin,
*oth casual and professionalstock investors, as large as institutional investorsor as small asan ordinary middleDclass family, through dividendsand stock priceincreases that may result
in capital gains, share in the wealth of profitable businesses. nprofitable and troubled
businesses may result in capital lossesfor shareholders.
Cor$or&te ,oern&n)e
*y having a wide and varied scope of owners, companies generally tend to improve
management standards and efficiencyto satisfy the demands of these shareholders, and the
more stringent rules for public corporations imposed by public stock exchanges and the
government. +onse(uently, 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 than privately held companies #those companies
where shares are not publicly traded, often owned by the company founders andor their
families and heirs, or otherwise by a small group of investors!.
&espite this claim, some wellDdocumented cases are known where it is alleged that there hasbeen considerable slippage in corporate governance on the part of some public companies.
he dotDcom bubble in the late 155>s, and the subprime mortgage crisis in '>>JE>6, are
classical examples of corporate mismanagement. +ompanies like $ets.com #'>>>!, )nron
+orporation #'>>1!, %ne.el #'>>1!, Sunbeam #'>>1!, :ebvan #'>>1!, delphia #'>>'!,
9+I :orld+om#'>>'!, $armalat #'>>!, merican International 2roup#'>>6!, *ear Stearns
#'>>6!, Aehman *rothers #'>>6!, 2eneral 9otors #'>>5! and Satyam +omputer Services
#'>>5! were among the most widely scrutini4ed by the media.
J
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owever, when poor financial, ethical or managerial records are known by the stock
investors, the stock and the company tend to lose value. In the stock exchanges, shareholders
of underperforming firms are often penali4ed by significant share price decline, and they tend
as well to dismiss incompetent management teams.
Cre&tin, inest%ent o$$ortunities 2or s%& inestors
s opposed to other businesses that re(uire huge capital outlay, investing in shares is open to
both the large and small stock investorsbecause a person buys the number of shares they canafford. herefore the Stock )xchange provides the opportunity for small investors to own
shares of the same companies as large investors.
+oern%ent )&$it&-r&isin, 2or deeo$%ent $ro3e)ts
2overnments at various levels may decide to borrow money to finance infrastructure proCects
such as sewage and water treatment works or housing estates by selling another category of
securities known asbonds. hese bonds can be raised through the Stock )xchange whereby
members of the public buy them, thus loaning money to the government. he issuance of
such bonds can obviate the need, in the short term, to directly tax citi4ens to finance
developmentNthough by securing such bonds with the full faith and credit of the government
instead of with collateral, the government must eventually tax citi4ens or otherwise raise
additional funds to make any regular coupon payments and refund the principal when the
bonds mature.
4&ro%eter o2 the e)ono%y
t the stock exchange, share prices rise and fall depending, largely, on marketforces. Share
prices tend to rise or remain stable when companies and the economy in general show signs
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of stability and growth. n economic recession, depression, or financial crisis could
eventually lead to a stock market crash. herefore the movement of share prices and in
general of the stock indexescan be an indicator of the general trend in the economy.
Speculation
he stock exchanges are also fashionable places for speculation. In a financial context, the
terms ?speculation? and ?investment? are actually (uite specific. 3or instance, although the
word ?investment? is typically used, in a general sense, to mean any act of placing money in a
financial vehicle with the intent of producing returns over a period of time, most ventured
moneyNincluding funds placed in the worldFs stock marketsNis actually not investment but
speculation.
TOP 15 STOC6 E7ACHAN+ES IN THE !ORD
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1>
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INDIAN STOC6 E7CHAN+ES
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N&ture o2 & Sto)' E8)h&n,ehe stock exchanges are the pillars of our modern financial capitalism.' he stock exchange
represents an organi4ed market for trading in securities. ?Stock )xchange is an association,
organi4ation or body of individuals, whether incorporated or not, established for the purpose
of assisting, regulating and controlling business in buying, selling and dealing in securities?.
he securities dealt in at a stock exchange include the share; and debentures of public
companies already issued by them, 2overnment securities and the bonds and debentures
issued by municipal bodies, public sector undertakings and port trusts.
Ori,in &nd +ro"th o2 Sto)' E8)h&n,es in Indi&he Stock )xchange is an institution of rather recent growth. istorical records show that
there was stock trading in India at *ombay and +alcutta in the first half of the 15th century.
hough there was stock trading even at the time of the )ast India +ompany, stock business
started in its organi4ed form only in 16J@.
History o2 Indi&n Sto)' /&r'et
Indian stock market marks to be one of the oldest stock market in sia. It dates back to the
close of 16th century when the )ast India +ompany used to transact loan securities. In the
16>s, trading on corporate stocks and shares in *ank and +otton presses took place in
*ombay. hough the trading was broad but the brokers were hardly half do4en during 16=>
and 16@>.
n informal group of '' stockbrokers began trading under a banyan tree opposite the ow
all of *ombay from the mi16@>s, each investing a #then! princely amount of -upee 1. hisbanyan tree still stands in the orniman +ircle $ark, 9umbai. In 16B>, the exchange
flourished with B> brokers. In fact the FShareF in India began with the merican +ivil :ar
broke and the cotton supply from the S to )urope stopped. 3urther the brokers increased to
'@>. he informal group of stockbrokers organi4ed themselves as the he /ative Share and
Stockbrokers ssociation which, in 16J@, was formally organi4ed as the *ombay Stock
)xchange #*S)!.
*S) was shifted to an old building near the own all. In 15'6, the plot of land on which the
*S) building now stands #at the intersection of &alal Street, *ombay Samachar 9arg and
1'
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ammam Street in downtown 9umbai! was ac(uired, and a building was constructed and
occupied in 15>.$remchand -oychand was a leading stockbroker of that time, and he
assisted in setting out traditions, conventions, and procedures for the trading of stocks at
*ombay Stock )xchange and they are still being followed.
Several stock broking firms in 9umbai were family run enterprises, and were named after the
heads of the family. he following is the list of some of the initial members of the exchange,
and who are still running their respective business"
&.S. $rabhudas 7 +ompany #now known as &S$, and a Coint venture partner
with 9errill Aynch!
Hamnadas 9orarCee #now known as H9!
+hampaklal &evidas #now called +ifco 3inance!
*riCmohan Aaxminarayan
In 15@B, the 2overnment of India recogni4ed the *ombay Stock )xchange as the first stock
exchange in the country under the Securities +ontracts #-egulation! ct.he most decisive
period in the history of the *S) took place after 155'. In the aftermath of a maCor scandal
with market manipulation involving a *S) member named arshad 9ehta, *S) responded
to calls for reform with intransigence. he footdragging by the *S) helped radicalise the
position of the government, which encouraged the creation of the /ational Stock )xchange
#/S)!, which created an electronic marketplace. /S) started trading on = /ovember 155=.
:ithin less than a year, /S) turnover exceeded the *S). *S) rapidly automated, but it never
caught up with /S) spot market turnover. he second strategic failure at *S) came in the
following two years. /S) embarked on the launch of e(uity derivatives trading. *S)
responded by political effort, with a friendly S)*I chairman #&. -. 9ehta! aimed at blocking
e(uity derivatives trading. he *S) and &. -. 9ehta succeeded in delaying the onset of
e(uity derivatives trading by roughly five years. *ut this trading, and the accompanying shift
of the spot market to rolling settlement, did come along in '>>>and '>>1 helped by another
maCor scandal at *S) involving then $resident 9r. nand -athi. /S) scored nearly
1>>Omarket share in the runaway success of e(uity derivatives trading, thus consigning *S)
into clearly second place. oday, /S) has roughly BBO of e(uity spot turnover and roughly
1
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1>>O of e(uity derivatives turnover. Stock )xchange provides a trading platform, where
buyers and sellers can meet to transact in securities.
S)o$e o2 Indi& sto)' %&r'et
imes are really (uite exciting; an ever increasing plethora of events followed the global
financial crisis. :ith globali4ation and innovation in the financial markets at its peak D it is
very essential to study the market risks and re(uirements. %ver the years, the India stock
market has undergone maCor changes to remain at par with the 2lobal peers. :ith global
trade and finance getting more dynamic day by day, the India stock market is not far behind
to experience these developments. his has helped the financial structure of India get more
innovative
/A9OR PAYERS
Competitors of sharekhan
HD*C 4&n'
&3+ */G is one of the leading &epository $articipant #&$! in the country with over 6
Aac deDmat accounts.
&3+ *ank &eDmat services offers you a secure and convenient way to keep track of your
securities and investments, over a period of time, without the hassle of handling physical
documents that get mutilated or lost in transit.&3+ */G is &epository participant both with /ational Securities &epositories Aimited
#/S&A! and +entral &epository Services Aimited #+&SA!.
I)i)i Dire)t
1=
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I+I+I &irect #or I+I+I&irect.com! is stock trading company of I+I+I *ank. long with stock
trading and trading in derivatives in *S) and /S), it also provides facility to invest in I$%s,
9utual 3unds and *onds.rading is available in *S) and /S).
P&is&.)o%
@paisa is the trade name of India Infoline Securities $rivate Aimited #@paisa!, member of
/ational Stock )xchange and he Stock )xchange, 9umbai. @paisa is a wholly owned
subsidiary of India Infoline Atd, Indias leading and most popular finance and investment
portal. @paisa has emerged as one of leading players in eDbroking space in India.
Indi& 4us
Indiabulls is IndiaFs leading retail financial services company with JJ locations spread across
B= cities. Indiabulls is lead by a highly regarded management team that has invested crores of
1@
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rupees into a world class Infrastructure that provides realDtime service 7 '=J access to all
information and products. he Indi&bus Pro2ession& Net"or' offers realDtime prices,
detailed data and news, intelligent analytics, and electronic trading capabilities, right at your
fingerDtips. his powerful technology is complemented by our knowledgeable and customer
focused -elationship 9anagers. Indiabulls offers a full range of financial services and
products ranging from )(uities, &erivatives, &emat services and Insurance to enhance wealth
1.; About the or,&ni0&tion
SHARE6HAN
1B
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CO/PANY PRO*IE:
Sharekhan is one of the top retail brokerage houses in India with a strong online trading
platform. he company provides e(uity based products #research, e(uities, derivatives,
depository, margin funding, etc.!. It has one of the largest networks in the country with 1'>>P
share shops in =>> cities and Indias premier online trading portal www.sharekhan.com. :ith
their research expertise, customer commitment and superior technology, they provide
investors with endDtoDend solutions in investments. hey provide trade execution services
through multiple channels D an Internet platform, telephone and retail outlets.
HISTORY
Sharekhan was established by 9orakhia family in 1555D'>>> and 9orakhia family, continues
to remain the largest shareholder. It is the retail broking arm of the 9umbaiDbased SS6IB $hoenix ouse'nd floor
senapati *apatmarg Aower $arel
9umbaiD=>>>1
ONINE DIISION 6,februart,'>>>
!E4SITE www.sharekhan.com
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which is established in 15> is the parent company of Sharekhan ltd. :ith a legacy of more
than 6> years in the stock markets, the SSGI group ventured into institutional broking and
corporate finance over a decade ago. $resently SSGI is one of the leading players in
institutional broking and corporate finance activities. Sharekhan offers its customers a wide
range of e(uity related services including trade execution on *S), /S), and &erivatives.
&epository services, online trading, Investment advice, +ommodities, etc.
Sharekhan Atd. is a brokerage firm which is established on 6th 3ebruary '>>> and now it is
having all the rights of SSGI. he company was awarded the '>>@ 9ost $referred Stock
*roking *rand by waa4 +onsumer
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the most significant players raising e(uity in the Indian market. SSGI, a veteran e(uities
solutions company has over 6 decades of experience in the Indian stock markets.
?Sharekhan has always believed in collaborating with likeDminded +orporate into forming
strategic associations for mutual benefit relationships? says Haideeprora, &irector D
Sharekhan Aimited.
Sharekhan is also about focus. Sharekhan does not claim expertise in too many things.
SharekhanFs expertise lies in stocks and thatFs what he talks about with authority and these
beliefs are reflected in everything Sharekhan does for usQ Sharekhan is a part of the SSGI
group, an Indian financial services power house, with strong presence in -etail e(uities
Institutional e(uities Investment banking.
.ISION:
o be the best retail brokering *rand in the retail business of stock market.
+orporate +lientele.
+ontinuous upDgradation with changing technology. o provide the best customer service and product innovation tuned to diverse
/eeds of individual.
/ISSION:
o educate and empower the individual investor to make better investment decisions
through (uality advice and superior service.
OBJECTIVE:
o increase interest about online share trading
o open &eDmat account.
o know various reasons for market fluctuations
o learn to manage time.
o gain practical knowledge of the market.
o have a practical experience of working in a reputed organi4ation.
DIRECTORS:
15
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R.T!R"# S$!$ CE%& S$!RE '$!#
R S$!#'!R (!)*!+!& ,)RECT%R -%ER!T)%#/ %0 T$E
C%!#+
R. 1!),EE !R%R!2,)RECT%R -R%C,"CT 3 TEC$#%*%4+/ %0
T$E C%!#+
OTHER DIRECTORS:
9r. *aldev A *oolani
9rs. 9eena S Hain
9r. *hupendra Shah 9r. asmukhSheth
ACHIEE/ENTS O* SHARE6HAN:
wired company along with -eliance, ll, Infosys, etc. by 8*usiness oday, Hanuary
'>>= edition.
It was awarded 8op &omestic *rokerage ouse four times by )uro and sia
money.
'>
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It was :inner of R*est 3inancial :ebsite award.
Indias most preferred brokers within @ years. R+/*+waa4 customers ward '>>@
OR+ANISATIONA STRUCTURE:
/r. T&run Sh&hE +hief )xecutive %fficer #+)%! of the company.
/r.Sh&n'&r &i&y&E &irector #%perations! of the company.
/r. 9&idee$Aror&E &irector #$roducts 7 echnology! of the company.
P&thi' +&ndotr& -ead of -esearch. Ni'hi or& -
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CASSIC ACCOUNT:
In classic account it is very simple to trading, there customer has first to open a demat
account with the sharekhan and after opening an account can login to the sharekhan.com and
in the classic account whatever company information the clients want, he has to type the
company name or code and he will get all the necessary information about that company and
he can buy and sell the that company stock or share but in the classic account the client can
access only one script at a time.
*EATURE O* CASSIC ACCOUNT:
+lassic account enables you mti buy and sell shares through over website you get the feature
like"D
%nline trading account for investing in )(uity and &erivatives via
www.sharekhan.com Integration of %nDline trading, Saving *ank and &emat ccount.
Instant cash transfer facility against purchase 7 sale of shares.
Instant order and trade confirmation by )Dmail. Streaming Tuotes #+ash 7 &erivatives!.
$ersonali4ed market watch.
Single screen interface for +ash and derivatives and more.
$rovision to enter price trigger and view the same online in market watch.
''
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SPEEDTRADE ? TRADE TI+ER"
S$))&-&) is an internetDbased software application,that enables you to buy and sell in
an instant. It is ideal for active traders and Cobbers who transact fre(uently during days
session to capitali4e on intraDday price movement.
*e&tures:
Single platform for multiple exchange *S),/S),9+0,/+&)0,9A
3/&,I$%. 9ultiple market watch available on single screen.
9ultiple charts with tick by tick intraday and end of day charting powered with
various studies.
2raph studies include average,bandDbollinger, kwnow sure thing 9+*,-SI etc. pply studies such as vertical,hori4ontal, trend,restracement and free lines.
'
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ser can save his own defined screen as well as graph templaye, thatb as saving the
layout for future use defined alerty setting on an input stock price trigger. ools available to market such as tick (uery, tickert market summary, action
watch,option premium callfuture, spam calculator. Short cut key for fast access to order place meants and reports.
%nline fund transfer activated with 1' banks.
DIA-N-TRADE:
'=
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long with enabling access for your trade online, the +ASSI+ and S$))&-&)
++%/ also gives you our &ialDnDrade services. :ith this service, all you have to do is
dial our dedicated phone lines 1D6>>D''DJ@>>, 5J>DJ@>> and Separate number for
Speedtrade +lients i.e. 16>>D''DJ6>>.
*EATURES O* DAI-N-TRADE"
wo dedicated numbers for placing your orders with your cellphone or land line
number.
Simple and secure interaction voice response based system for authentication. /o waiting time enter your $I/ to be transferred to our telebrokers.
fter hours order placement facing between 5">> pm to 5"> am.
E>UITY:
In finance, e(uity trading is the buying and selling of company stock shares. Shares in large
publicly traded companiesare bought and sold through one of the maCor stock exchanges,
such as the/ew Uork Stock )xchange, Aondon Stock )xchange or*ombay Stock )xchange,
which serve as managed auctionsfor stock trades. Stock shares in smaller public companies
are bought and sold in overDtheDcounter#%+! markets.
)(uity trading can be performed by the owner of the shares, or by an agentauthori4ed to buy
and sell on behalf of the shareFs owner. $roprietary trading is buying and selling for the
traderFs own profit or loss. In this case, the principal is the owner of the shares. gency
trading is buying and selling by an agent, usually a stockbroker, on behalf of a client. gents
are paid acommissionfor performing the trade.9aCor stock exchanges have market makers
who help limit price variation #volatility! by buying and selling a particular companyFs shares
on their own behalf and also on behalf of other clients.
%ver the past 1@ years with the popularity of the internet and discount brokerage firms, it has
become increasingly luring for the average investor to partake in their own financial planning
and direction of their future. lthough trading can be incredibly stressful and dangerous
financially, many people have made it their profession in place of a 5 to @ Cob. Individuals
that pursue this nonDmainstream career usually will have a knack for technical analysis,
'@
http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Auctionhttp://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Agent_(law)http://en.wikipedia.org/wiki/Proprietary_tradinghttp://en.wikipedia.org/wiki/Principal_(commercial_law)http://en.wikipedia.org/wiki/Stockbrokerhttp://en.wikipedia.org/wiki/Commission_(remuneration)http://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Volatility_(finance)http://en.wikipedia.org/wiki/Brokerage_firmhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Shareshttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Auctionhttp://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/Agent_(law)http://en.wikipedia.org/wiki/Proprietary_tradinghttp://en.wikipedia.org/wiki/Principal_(commercial_law)http://en.wikipedia.org/wiki/Stockbrokerhttp://en.wikipedia.org/wiki/Commission_(remuneration)http://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Volatility_(finance)http://en.wikipedia.org/wiki/Brokerage_firm7/25/2019 amit project(2).docx
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money management, tape reading and traderFs psychology as well as enCoy working in a fast
paced competitive environment.
/UTUA *UND:
mutual fund is a very professionally managed type of collective investment scheme that
pools money from many investors and invests it stock,bond,,short term money market
instruments and other securities.9utul funds have a fund manager who invests money on
behalf of the investor by buyingselling stock,bonds, etc.+urrently the worldwide value of all
mutul funds totals more than KS'B trillion.he nited States lead with the number of mutul
fund schemes.here are more than 6>> mutul fund schemes in the .S.. comparatively,
India has around 1>>> mutul fund schemes,but this number has grown exponentially in the
last few year.he total assets under management in India of all mutul fund put together
touched a peak of -s.@,==,@@.here are various investment avenues available to an investor
such as real estate, bank deposits, post office deposits, share, debenture, bonds etc. mutul
fund is one more type of investment avenue available to an investors. here are many reasons
why investors prefer mutulfunds.*uying shares directly from the market is one way of
investing but this re(uires spending time to find out the market to find out the performance of
the company whose share is being purchased, understanding the future business prospects of
the company, finding out the track record of the promoters and the dividend,
bonus,etc.Investor therefore prefer the mutul fund route.
INITIA PU4IC O**ERIN+:
n initial public offering #I$%! or stock market launch is a type of public offering where
shares of stockin a company are sold to the general public, on a securities exchange, for the
first time. hrough this process, aprivate companytransforms into apublic company. Initial
public offerings are used by companies to raise expansion capital, to possibly moneti4e the
investments of early private investors, and to become publicly traded enterprises. company
selling shares is never re(uired to repay the capital to its public investors. fter the I$%,
'B
http://en.wikipedia.org/wiki/Public_offeringhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Private_companyhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Monetizehttp://en.wikipedia.org/wiki/Public_offeringhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Securities_exchangehttp://en.wikipedia.org/wiki/Private_companyhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Monetize7/25/2019 amit project(2).docx
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when shares trade freely in the open market, money passes between public investors.
lthough an I$% offers many advantages, there are also significant disadvantages. +hief
among these are the costs associated with the process, and the re(uirement to disclose certain
information that could prove helpful to competitors, or create difficulties with vendors.
&etails of the proposed offering are disclosed to potential purchasers in the form of a lengthy
document known as a prospectus. 9ost companies undertaking an I$% do so with the
assistance of an investment banking firm acting in the capacity of an underwriter.nderwriters provide a valuable service, which includes help with correctly assessing the
value of shares #share price!, and establishing a public market for shares #initial sale!.
lternative methods such as the dutch auctionhave also been explored. In terms of si4e and
public participation, the most notable example of this method is the 2oogleI$%.+hina has
recently emerged as a maCor I$% market, with several of the largest I$%s taking place in that
country.
In '>1, documentsunder sealin an ongoing lawsuit were obtained by /ew Uork imes :all
Street *usiness columnist Hoe /ocera. he documents related to the I$% of oys.com, during
the dotDcom bubble, and alleged that kickbackswere demanded from institutional investors
who made large profits flippingdeliberately undervalued I$%s underwritten by investment
banker2oldman Sachs. -euters:all Street correspondent 3elix Salmonsuggested that both
the company going public and their initial shareholders would be defrauded by such a
practice. he lawsuit is ongoing, and the allegations remain unproven.
CO//ODITY:
In economics, a commodity is a marketable item produced to satisfy wants or needs.
)conomic commodities comprise goodsandservices. he more specific meaning of the term
commodity is applied to goodsonly. It is used to describe a class of goodsfor which there is
demand, but which is supplied without (ualitative differentiation across a market.
commodity has full or partial fungibility; that is, the market treats its instances as e(uivalent
or nearly so with no regard to who produced them. ?3rom the taste of wheat it is not possible
'J
http://en.wikipedia.org/wiki/Prospectus_(finance)http://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Securities_underwritinghttp://en.wikipedia.org/wiki/Dutch_auctionhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Under_sealhttp://en.wikipedia.org/wiki/Joe_Nocerahttp://en.wikipedia.org/wiki/EToys.comhttp://en.wikipedia.org/wiki/Kickback_(bribery)http://en.wikipedia.org/wiki/Flippinghttp://en.wikipedia.org/wiki/Investment_bankerhttp://en.wikipedia.org/wiki/Investment_bankerhttp://en.wikipedia.org/wiki/Goldman_Sachshttp://en.wikipedia.org/wiki/Felix_Salmonhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Wantshttp://en.wikipedia.org/wiki/Needshttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Fungibilityhttp://en.wikipedia.org/wiki/Prospectus_(finance)http://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Securities_underwritinghttp://en.wikipedia.org/wiki/Dutch_auctionhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Under_sealhttp://en.wikipedia.org/wiki/Joe_Nocerahttp://en.wikipedia.org/wiki/EToys.comhttp://en.wikipedia.org/wiki/Kickback_(bribery)http://en.wikipedia.org/wiki/Flippinghttp://en.wikipedia.org/wiki/Investment_bankerhttp://en.wikipedia.org/wiki/Investment_bankerhttp://en.wikipedia.org/wiki/Goldman_Sachshttp://en.wikipedia.org/wiki/Felix_Salmonhttp://en.wikipedia.org/wiki/Economicshttp://en.wikipedia.org/wiki/Wantshttp://en.wikipedia.org/wiki/Needshttp://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Good_(economics)http://en.wikipedia.org/wiki/Qualitative_datahttp://en.wikipedia.org/wiki/Product_differentiationhttp://en.wikipedia.org/wiki/Markethttp://en.wikipedia.org/wiki/Fungibility7/25/2019 amit project(2).docx
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to tell who produced it, a -ussian serf, a 3rench peasant or an )nglish capitalist.? $etroleum
and copper are other examples of such commodities, their supply and demand being a part of
one universal market. Items such as stereo systems, on the other hand, have many aspects of
product differentiation, such as the brand, the user interface and the perceived (uality. he
demand for one type of stereo may be much larger than demand for another.
In contrast, one of the characteristics of a commodity good is that its price is determined as a
function of its market as a whole. :ellDestablished physical commodities have actively traded
spot and derivativemarkets. 2enerally, these are basic resources and agricultural products
such as iron ore, crude oil, coal, salt, sugar, tea, coffee beans, soybeans, aluminum, copper,
rice, wheat, gold, silver,palladium, andplatinum. Soft commodities are goods that are grown,
while hard commodities are the ones that are extracted through mining. here is another
important class of energy commodities which includes electricity, gas, coal and oil.
)lectricity has the particular characteristic that it is usually uneconomical to store; hence,
electricity must be consumed as soon as it is produced. +ommodification #also called
commoditi4ation! occurs as a goods or services market loses differentiation across its supply
base, often by the diffusion of the intellectual capitalnecessary to ac(uire or produce it
efficiently. s such, goods that formerly carried premium margins for market participants
have become commodities, such as generic pharmaceuticals and &-9 chips. nother
example suggested by the/ew Uork imesLBMis multivitamin supplements; a @> mg tablet of
calcium is of e(ual value to a consumer no matter what company produces and markets it,
and as such, multivitamins are now sold in bulk and are available at any supermarket with
little differentiation among brands.
here is a spectrum of commodification, rather than a binary distinction of ?commodity
versus differentiable product?. 3ew products have complete undifferentiability and hence
fungibility; even electricity can be differentiated in the market based on its method of
generation #e.g., fossil fuel, wind, solar!. 9any productsF degree of commodification depends
on the buyerFs mentality and means. 3or example, milk, eggs, and notebook paper are
considered by many customers as completely undifferentiable and fungible; lowest price is
'6
http://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Spot_markethttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Soybeanhttp://en.wikipedia.org/wiki/Aluminumhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Palladiumhttp://en.wikipedia.org/wiki/Platinumhttp://en.wikipedia.org/wiki/Mininghttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Commodificationhttp://en.wikipedia.org/wiki/Commoditizationhttp://en.wikipedia.org/wiki/Intellectual_capitalhttp://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Markethttp://en.wiktionary.org/wiki/participationhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Dynamic_random-access_memoryhttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/Commodity#cite_note-Times-6http://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Spot_markethttp://en.wikipedia.org/wiki/Derivative_(finance)http://en.wikipedia.org/wiki/Agriculturehttp://en.wikipedia.org/wiki/Iron_orehttp://en.wikipedia.org/wiki/Crude_oilhttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Salthttp://en.wikipedia.org/wiki/Sugarhttp://en.wikipedia.org/wiki/Teahttp://en.wikipedia.org/wiki/Coffee_beanhttp://en.wikipedia.org/wiki/Soybeanhttp://en.wikipedia.org/wiki/Aluminumhttp://en.wikipedia.org/wiki/Copperhttp://en.wikipedia.org/wiki/Ricehttp://en.wikipedia.org/wiki/Wheathttp://en.wikipedia.org/wiki/Goldhttp://en.wikipedia.org/wiki/Silverhttp://en.wikipedia.org/wiki/Palladiumhttp://en.wikipedia.org/wiki/Platinumhttp://en.wikipedia.org/wiki/Mininghttp://en.wikipedia.org/wiki/Coalhttp://en.wikipedia.org/wiki/Commodificationhttp://en.wikipedia.org/wiki/Commoditizationhttp://en.wikipedia.org/wiki/Intellectual_capitalhttp://en.wikipedia.org/wiki/Profit_marginhttp://en.wikipedia.org/wiki/Markethttp://en.wiktionary.org/wiki/participationhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Dynamic_random-access_memoryhttp://en.wikipedia.org/wiki/New_York_Timeshttp://en.wikipedia.org/wiki/Commodity#cite_note-Times-67/25/2019 amit project(2).docx
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the only deciding factor in the purchasing choice. %ther customers take into consideration
other factors besides price, such as environmental sustainability and animal welfare. o these
customers, distinctions such as ?organic versus not? or ?cage freeversus not? count toward
differentiating brands of milk or eggs, and percentage of recycled content or forestry council
certification count toward differentiating brands of notebook paper.
CURRENCY:
he foreign exchange market #forex, 30, or currency market! is a global decentrali4ed
market for the trading of currencies. he main participants in this market are the larger
international banks. 3inancial centers around the world function as anchors of trading
between a wide range of different types of buyers and sellers around the clock, with the
exception of weekends. )*Sand -eutersF dealing >>>are two main interbank 30 trading
platforms. he foreign exchange market determines the relative values of different currencies.
he foreign exchange market works through financial institutions, and it operates on severallevels. *ehind the scenes banks turn to a smaller number of financial firms known as
Rdealers, who are actively involved in large (uantities of foreign exchange trading. 9ost
foreign exchange dealers are banks, so this behindDtheDscenes market is sometimes called the
Rinterbank market,although a few insurance companies and other kinds of financial firms are
involved. rades between foreign exchange dealers can be very large, involving hundreds of
millions of dollars.
he foreign exchange market assists international trade and investment by enabling currency
conversion. 3or example, it permits a business in the nited Statesto import goods from the
)uropean nionmember states, especially )uro4onemembers, and pay )uros, even though
its income is in nited States dollars. It also supports direct speculation in the value of
currencies, and the carry trade, speculation based on the interest rate differential between two
currencies.
In a typical foreign exchange transaction, a party purchases some (uantity of one currencyby paying some (uantity of another currency. he modern foreign exchange market began
'5
http://en.wikipedia.org/wiki/Organic_foodhttp://en.wikipedia.org/wiki/Free-range_eggshttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Electronic_Broking_Serviceshttp://en.wikipedia.org/wiki/Reuters_3000_Xtrahttp://en.wikipedia.org/wiki/Currency_conversionhttp://en.wikipedia.org/wiki/Currency_conversionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Euroshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Carry_tradehttp://en.wikipedia.org/wiki/Organic_foodhttp://en.wikipedia.org/wiki/Free-range_eggshttp://en.wikipedia.org/wiki/Currencyhttp://en.wikipedia.org/wiki/Electronic_Broking_Serviceshttp://en.wikipedia.org/wiki/Reuters_3000_Xtrahttp://en.wikipedia.org/wiki/Currency_conversionhttp://en.wikipedia.org/wiki/Currency_conversionhttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/European_Unionhttp://en.wikipedia.org/wiki/Eurozonehttp://en.wikipedia.org/wiki/Euroshttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Carry_trade7/25/2019 amit project(2).docx
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forming during the 15J>s after three decades of government restrictions on foreign exchange
transactions #the *retton :oods system of monetary management established the rules for
commercial and financial relations among the worldFs maCor industrial states after :orld :ar
II!, when countries gradually switched to floating exchange ratesfrom the previous exchange
rate regime,which remained fixedas per the *retton :oods system.
he foreign exchange market is uni(ue because of the following characteristics"
its huge trading volume representing the largest asset class in the world leading to
high li(uidity;
its geographical dispersion;
its continuous operation" '= hours a day except weekends, i.e., trading from '>"1@
29on Sunday until ''">> 29 3riday;
the variety of factors that affect exchange rates;
the low margins of relative profit compared with other markets of fixed income; and
the use ofleverage to enhance profit and loss margins and with respect to account
si4e.
s such, it has been referred to as the market closest to the ideal of perfect competition,notwithstanding currency intervention by central banks. ccording to the *ank for
International Settlements,LM as of pril '>1>, average daily turnover in global foreign
exchange markets is estimated at K.56 trillion, a growth of approximately '>O over the
K.'1 trillion daily volume as of pril '>>J. Some firms speciali4ing on foreign exchange
market had put the average daily turnover in excess of SK= trillion. L=M
he K.56 trillion breakDdown is as follows"
>
http://en.wikipedia.org/wiki/Floating_exchange_ratehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Fixed_exchange_ratehttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Liquidityhttp://en.wikipedia.org/wiki/GMThttp://en.wikipedia.org/wiki/Exchange_ratehttp://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Perfect_competitionhttp://en.wikipedia.org/wiki/Perfect_competitionhttp://en.wikipedia.org/wiki/Currency_interventionhttp://en.wikipedia.org/wiki/Currency_interventionhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Bank_for_International_Settlementshttp://en.wikipedia.org/wiki/Bank_for_International_Settlementshttp://en.wikipedia.org/wiki/Bank_for_International_Settlementshttp://en.wikipedia.org/wiki/Foreign_exchange_market#cite_note-BIS-3http://en.wikipedia.org/wiki/Foreign_exchange_market#cite_note-BIS-3http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Foreign_exchange_market#cite_note-4http://en.wikipedia.org/wiki/Floating_exchange_ratehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Exchange_rate_regimehttp://en.wikipedia.org/wiki/Fixed_exchange_ratehttp://en.wikipedia.org/wiki/Bretton_Woods_systemhttp://en.wikipedia.org/wiki/Liquidityhttp://en.wikipedia.org/wiki/GMThttp://en.wikipedia.org/wiki/Exchange_ratehttp://en.wikipedia.org/wiki/Leverage_(finance)http://en.wikipedia.org/wiki/Perfect_competitionhttp://en.wikipedia.org/wiki/Currency_interventionhttp://en.wikipedia.org/wiki/Central_bankhttp://en.wikipedia.org/wiki/Bank_for_International_Settlementshttp://en.wikipedia.org/wiki/Bank_for_International_Settlementshttp://en.wikipedia.org/wiki/Foreign_exchange_market#cite_note-BIS-3http://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Foreign_exchange_market#cite_note-47/25/2019 amit project(2).docx
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K1.=5> trillion in spottransactions
K=J@ billion in outright forwards
K1.JB@ trillion in foreign exchange swaps
K= billion currency swaps
K'>J billion in optionsand other products
TYPES O* CURRENCY ARE TRADIN+ IN INDIA"
1. &%AA%-
'. )-%
. $%/&
=. U)/
*UTURE PANS O* SHARE6HAN:
',>>,>>> plus retail customers being serviced through centrali4ed call
+enters web solutions. *ranches Semi branches servicing affluent aggressive traders through
high skill financial advisor. '@> independent investment managers franchisee servicing @>,>>> highly
valued clients. /ew initiatives $ortfolio management Services and commodities trading.
9edia reports indicate that 3uture 2rouphas shelved plans to sell stakes in some of
its retail formats.
he group had earlier planned to sell stakes to either strategic or financial investors in
retail formats including electronic chain )DVone, furniture business omeown,
logistics firm 3uture Supply +hain, convenience store format G*Fs 3air $rice and
office supplies retail Staples in an effort to reduce the companyFs highdebtburden.
1
http://en.wikipedia.org/wiki/Foreign_exchange_spothttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Foreign_exchange_swaphttp://en.wikipedia.org/wiki/Currency_swaphttp://en.wikipedia.org/wiki/Foreign_exchange_optionhttp://www.sharekhan.com/stock-market/news/Future-Group-drops-plan-to-sell-stake-in/FBBB6393-74C0-4145-868C-01A342C8750E/MustKnowNews/161/News.htmhttp://en.wikipedia.org/wiki/Foreign_exchange_spothttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Foreign_exchange_swaphttp://en.wikipedia.org/wiki/Currency_swaphttp://en.wikipedia.org/wiki/Foreign_exchange_optionhttp://www.sharekhan.com/stock-market/news/Future-Group-drops-plan-to-sell-stake-in/FBBB6393-74C0-4145-868C-01A342C8750E/MustKnowNews/161/News.htm7/25/2019 amit project(2).docx
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he company has however managed to reduce its high debt by selling stakes in some
of its businesses.
CHAPTER @ ;
ITERATURE REIE!
'
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calling each customer in order to take feedback and any suggestions for improvement of the
services or any other kind of Sharekhan.
;( Cient isits+lient
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visitor to stock market and second about their personal detail. In personal detail he
should have to give their name, phone no and address, each part is mandatory to fill.
. Adertise%ent throu,h "ebsite"D his advertisement method is used by sharekhan to
get popular among the netusers. s we know Internet is most important factor of the
human being life in todays era of advancement. here is a form type popDup occur on
screen of the user that should be filled by user. hat information automatically
distributed to their nearest sharekhan outlets. nd a contact made by sales executives
to that client for their help.
. P&%$hets distribution"D $amphlets that having the key features of the broking
company and address of nearest outlet to contact for help. hese are distributed by the
trainees, executives or other hired persons, mostly to those places where huge rush
passed daily. hese also supports to the outlets to collect the raw data for their further
use to making them their customer and providing services. $amphlets consist key
features and new achievements of the company that aware to the customer for their
special services.
. Tee-)&in," his is used to provide information regarding share market to the
customers 7 also to convince them to trade in share market , opening a demat accout
with sharekhan 7 to satisfy the customers with the aim of profit maximi4ation.
Sharekhan motive is to give satisfaction to their customer in the better way.
5. Adertisin, Pro%otion& A)tiities &do$ted by Sh&re'h&n td.
Ty$es o2 Adertisin,
Print Adertisin,:/ewspapers, 9aga4ines, *rochures, and 3liers.
4ro&d)&st &dertisin,:elevision, -adio and the Internet
Outdoor Adertisin,:*illboards, Giosks, radeshows and )vents
@
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he data collected from secondary data sources from Sharekhans database such as
Aead 9anagement System does not cover all the customers details and responses and
consider a small sample si4e, thus the analysis may not be accurate. $rimary data collection through Tuestionnaires accounts for a small sample si4e of
the no. of investors, thus the analysis may not be accurate.
J
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CHAPTER-
RESEARECH/ETHODOO+Y
6
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RESEARCH /ETHODOO+Y
-esearch 9ethodology is a way to systematically solve the research problem. he -esearch
9ethodology includes the various methods and techni(ues for conducting a -esearch.
R9arketing -esearch is the systematic design, collection, analysis and reporting of data and
finding relevant solution to a specific marketing situation or problem. &. Slesinger and 9.
Stephenson in the encyclopedia of Social Sciences define -esearch as Rthe manipulation of
things, concepts or symbols for the purpose of generali4ing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the practice of an
art.
-esearch is, thus, an original contribution to the existing stock of knowledge making for its
advancement. he purpose of -esearch is to discover answers to the Tuestions through the
application of scientific procedures. %ur proCect has a specified framework for collecting data
in an effective manner. Such framework is called R-esearch &esign. he research process
followed by us consists of following steps"
#1! I have divided the entire city into 4ones and drew out samples out of each 4one.
#'! he si4e of samples drawn from each 4one depended on the prospectiveness of the
particular area.
3or e.g., if a particular research area consisted of %ffices then the sample si4e would
obviously be higher than an area like shopping mall or $
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RESEARCH DESI+N:-
Con)usion Oriented Rese&r)h: -
he research was conclusion oriented because this research aimed at identifying the
characteristics of a successful entrepreneur. In other words it is a research when we give our
own views about the research.
Des)ri$tie Rese&r)h: -
he research was a descriptive research as it was concerned with specific predictions, with
narration of facts and characteristics concerning individuals specially entrepreneurs. In other
words descriptive research is a research where in researcher has no control over variable. e
Cust presents the picture which has already studied.
SA"#$E DESIGN
sampling design is a definite plan for obtaining a sample from a given population. It refers
to the techni(ue or the procedure the researcher adopts in selecting items for the sample. he
following factors need to be decided within the scope of sample design"
Unierse o2 the Study: -he universe of the study included respondents in &elhi /+-
#1>> exixting customers!.
S&%$e Si0e:-Sample si4e is the number of elements to be included in a study. Geeping in
mind all the constraints B> respondents was selected..
S&%$in, Te)hniues:-he sampling techni(ues used are convenience sampling techni(ue
and simple random sampling techni(ue.
/ethods o2 D&t& Coe)tion" D -esearch work is exploratory in nature. Information has
been collected from both $rimary and Secondary data.
Pri%&ry sour)es: -$rimary data are those, which are collected afresh and for the first time,
and thus happen to be original in character. $rimary data has been collected by conductingsurveys through (uestionnaire, which include both openD ended and closeDended (uestions.
=>
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Se)ond&ry Sour)es: - Secondary data are those which have already been collected by
someone else which already had been passed through the statistical process. In this research
proCect secondary source used were books, online Cournals and websites and lead
management system.
Toos o2 Present&tion &nd An&ysis: -
o analy4e the data obtained with the help of (uestionnaire, following tools were used.
Toos o2 Present&tion:It means what tools were used to present the data in a meaningful way
so that it becomes easily understandable. In this research tools used were tables and graphs.
Toos o2 An&ysis:In this research the tools of analysis used were $ercentage method.
=1
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CHAPTER-
ANAYSIS AND
INTERPRETATION
='
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TAB$E'(). +ender o2 the res$ondent.
2)/&)- /%.%3 -)S$%/&)/S $)-+)/2)
9ale B> B>O
3emale => =>O
W
3I2-)1.; +ender o2 the res$ondent.
male
female
==
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T!=*E5.9O))u$&tion o2 the res$ondent.
%ccupation /%.%3 -)S$%/&)/S $)-+)/2)
Student '> '>O
*usiness => =>O
Service '@ '@O
%ther 1@ 1@O
3I2-)1. O))u$&tion o2 the res$ondent.
student
business
service
other
=@
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*A)1.=Are you &"&re &bout the sh&re %&r'et .
%$I%/S /%.%3 -)S$%/&)/S $)-+)/2)
U)S '> '>O
/% 6> 6>O
3I2-) 1.= Are you &"&re &bout the sh&re %&r'et.
yes
no
=B
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*A)1.@ !ith "hi)h bro'er&,e 2ir% do you h&e & de%&t &))ountX
%$I%/S /%.%3 -)S$%/&)/S $)-+)/2)
S-)G/ '> '>O
-)AI/+) +$IA '' ''O
G%G S)+-II)S 16 16O
&3+ S)+-II)S '@ '@O
%)-S 1@ 1@O
3I2-)1.@ I2 yesF "ith "hi)h bro'er&,e 2ir% do you h&e & de%&t &))ountG
sharekhan
reliance capital
kotak securities
hdfc securities
others
*A)1.BAre you s&tis2ied "ith their seri)es o2 sh&re'h&n td.G
=J
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%$I%/S /%.%3 -)S$%/&)/S $)-+)/2)
U)S B@ B@O
/% @ @O
3I2-)1.B Are you s&tis2ied "ith their seri)es o2 sh&re'h&n td.
yes
no
*A)1.JRe&son 2or )hoosin, Sh&re'h&n td.G
%$I%/S /%.%3 $)-+)/2)
=6
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-)S$%/&)/S
brokerage rate =@ =@O
research and investement tools '> '>O
online availabilityDinterface
and ease of use
1> 1>O
minimum opening margin and
maintenance fees
1@ 1@O
additional perks and services 1> 1>O
3I2-)1.J Re&son 2or )hoosin, & bro'er&,e 2ir%
brokerage rate
research
online availability
minimum opening
adiitional perks
*A)1.6 Ho" %u)h do you e8$e)t to e&rn 2ro% your s&in,sG #s$e)i2y in $er)ent&,e(
=5
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%$I%/S /%.%3 -)S$%/&)/S $)-+)/2)
1>OD'>O '@ '@O
'>OD>O => =>O
>OD@>O 1@ 1@O
@>O%- *%O
3I2-)1.6 Ho"%u)h do you e8$e)t to e&rn 2ro% your s&in,sG #s$e)i2y in $er)ent&,e(
58&78
78&98
98&68
68%R !=%(E
*A)1.5 !oud you i'e to s"it)h to so%e other seri)es $roider i2 s&%e 2&)iities &re
o22ered to you &t & o"er $ri)eX
%$I%/S /%.%3 -)S$%/&)/S $)-+)/2)
@>
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Ues > >O
/o J> J>O
3I2-)1.5 !oud you i'e to s"it)h to so%e other seri)es $roider i2 s&%e 2&)iities
&re o22ered to you &t & o"er $ri)eG
yes
no
*A) 1.1>!oud you i'e to re)o%%end sh&re'h&n td. Produ)ts seri)es &nd
2&)iit&te to othersG
Suggestion -espondent $ercentage
@1
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Ues 5>O 5>O
/o 1>O 1>O
0)4"RE 5.58!oud you i'e to re)o%%end sh&re'h&n td. Produ)ts seri)es &nd
2&)iit&te to othersG
yes
no
CHAPTER @
@'
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*INDIN+S AND
SU++ESTION
*INDIN+S:
*ased on the real data collected by primary and secondary sources and the information, we
can get the following findings"
he broking charges are charged minimum by sharekhan.ltd against its
competitors.
@
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here is no charges for opening of demat account in sharekhan.ltd. It is free of cost
but annual charges for the demat ac are -s==>year. wa r e n es s a b o ut t h e b a s i c s h a r e m a r k e t i s n o t v e r y g o o d a m o n g
t h e c u s t o m e r s a n d a l s o h a s t h e n e g a t i v e i m a g e o f s h a r e m a r k e t . lt h ou g h m ar k et i ng s t ra t eg i es a r e g o od b u t r e (u i re d m o re e D
m ar ke ti ng s o t ha t t he c om pa n y c an r ea ch t o m ax i mu m n o. o f
c u s t o m e r s . %nly B@ O of the respondents studied have the awareness level about the operational
system of the stock market and the derivative market in india. 3 re (u en cy o f t ra de ma de b y t he c us to me rs i s v er y h ig h o n
intraday basis and it is very low for I$%s applications only. he opinion about the current scenario of the market is volatile more than
previou s ye ars and people think that it is risky to invest at this time. 9 os tl y i nv es tm en t i s m ad e o n t he b as is o f r es ea rc h ma il s
p ro v id ed b y t he r e l a t i on s h ip managers and there are very few who want to
play try and error.
6= O of the respondents are aware about the role played by S)*I whereas 1B O of the
respondents are not aware about it.
*UTURE +RO!TH PROSPECTS:
he /ew Uear began on a shaky note on &alal Street. fter rising for three consecutive weeks
in &ecember, stock markets witnessed volatility in the first week of Hanuary, with the Sensex
and the /ifty declining =O and .JO, respectively.
he instability was largely due to skyrocketing inflation. 3ood inflation during the week rose
to 16.O as compared to 1=.=O in the last week of &ecember. he II$ numbers too were not
encouraging. Industrial growth plunged to '.JO in /ovember as compared to an expansion of
@=
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11.O in the same month a year ago. he pulling out by 3IIs and a hike in interest rates by
the -*I still remains a concern.
hough the mediumD and longterm prospects continue to be positive, analysts believe that the
markets might face some nearDterm headwinds. lso, volatility may persist for some time.
Since it isnFt possible to control the market sentiments, it would be better to focus our
attention on the sectors we are invested in. his would give us a more accurate picture of the
growth prospects of the 9oney odayD
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ess ti%e:
hey should try to make some arrangements to reduce account opening
time by verifying documents at branch it selves.
in' b&n' A?Cs:
Ainked as many accounts as client wants to its online account.
Ne" b&n's in the 'itty:
/eed to tie up with maCor banks like llahabad *ank, *ank of *aroda etc.
Custo%er s&tis2&)tion:
he company should focus on the customer satisfaction not on Cust taking money from
their pocket.
Controed br&n)hes :
he company would have to make some arrangements to control the branches and
make standardi4ed procedures for all of them for their better control and performance
appraisal.
+ommitment should be e(uali4ed for every person.
$rovide the facility of free demonstrations for all.
Improvement in the opening of &eDmat 7 contract notice procedure is re(uired.
here should be a limited number of clients under the relationship manger. So that he
can handle new as well as old customer properly.
Some promotional activities are re(uired for the awareness of the customer.
$eople at young age should be encouraged to invest in stock market.
@B
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Seminars should be held for providing information to prospective and present
customers. I suggest the exchange authorities to take steps to educate Investors about their rights
and duties. I suggest to the exchange authorities to increase the investors confidences. I suggest the exchange authorities to be vigilant to curb wide fluctuations of prices.
he speculative pressures are responsible for the wide changes in the price, not
attracting the genuine investors to the greater extent towards the market. 2enuine investors are not at all interested in the speculative gain as their investment is
based on the future profits, therefore the authorities of the exchange should be more
vigilant in imposing to curb the speculative of securities. /ecessary steps should be taken by the exchange to deal with the situations arising
due to break down in online trading.
CHAPTER @ 5
@J
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CONCUSION
CONCUSION:
%n the basis of the study it is found that Sharekhan Atd has better image among the
customers 7 has good marketing strategies which are easily influences the customers against
the other stockbrokers because of their timely market research and personali4ed advice on
how to improve the marketing strategies and to aware the customers regarding products and
services of sharekhan.
Sharekhan Atd. provide the facility of rade tiger as well as relationship manager facility for
encouragement and protect the interest of the investors. It also provides the information
@6
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through the internet and mobile alerts that what I$%s are coming in the market and it also
provides its research on the future prospect of the I$%.
Study also concludes that people are not much aware of commodity market and while its
going to be biggest market in India.
he company should also organi4e seminars and similar activities to enhance the
knowledge of prospective and existing customers, so that they feel more comfortable
while investing in the stock market. hings have changed for the better with the sharekhan going onDline coupled with
endeavor to stream line the whole trading system, things have changed dramatically
over the last to = years. /ew and advanced technologies have breached geographical
and cultural barriers, and have brought the countrywide market to doorstep.
*-%G)-S have suddenly been thrown to intense competition from their counter
parts across the country. he -egional Stock )xchanges have their own advantages like being nearer to the
retail investors and to let the *rokers perish would be detrimental to stock market
system there is no brokerage firms with in India with national reach. In the present scenario and to compete the *-%G)-S would re(uire sound
infrastructure and trading as per international standards. he concepts of business
have changed and today this has become service to client or to provide the best
possible service to client or to engage into new business from the regional center to
the metro centers and to impart li(uidity introduction of onDline trading is necessary. he introduction of onDline trading would influence in the investors resulting in an
increase in the business of the exchange. It has helped the brokers handling a vast
amount of transactions and this can be an efficient trading, delivering, settlement
system with ade(uate protection to investors. he trading of S-)G/ of the
first day was -s. 1.6 crores. &ue to invention of online trading there has been greater benefit to the investors as
they could sell buy shares as and when re(uired and that to with online trading, it
will inspire confidence in investors resulting in increase business of the exchange.
he *-%G)-S has a greater scope than compared to the earlier times because ofinvention of online trading
@5
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he concept of business has changed today this is a service oriental industry hence the
survival would re(uire them to provide the best possible service to the client he longer trading time had helped the investors as well as the broker to take much
interest in the trading of the securities as they had extra time to take in the security
market he existing system can be further improved by introduction of stop loss facility that
will help to reduce investors losses
lso there is need for an exchange to setup standing committee into breakdown of online
trading.
he Indian stock market witnesses both the good as well as the bad time. 9ost of the people
keep them away from bad times that lead to low li(uidity in the markets. *ut for the rest who
want to remain in the markets without losing much of their capital and take leverage of the
market movements in both north and south directions, &erivatives Instruments are the tools to
be with. *y studying and applying various &erivative Instruments like 3utures, 3orwards and
%ption strategies, I came to a conclusion that these instruments are the best ones to turn the
bad time into a good one i.e. to earn profits in any market direction.
herefore, &erivative Instruments are a very good tool that will help us to minimi4e our risk
and maximi4e our returns so that one can have conviction in his portfolio in the hugely
volatile stock market
3inally, the obCective of the study is accomplished and I recommend that one should use the
&erivative Instruments, as it is very much applicable in the Indian Stock 9arket.
B>
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ANNE7URE
Tee$honi) &nd )&ed )&in, >uestionn&ire
/ameYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
+ontact no"YYYYYYYYYYYYYYYYYYYYYYYYYYYYY
&o you invest into stock marketX
Ues /o If yes, where do you investingX
)(uity 9utual fund
+ommodity %ther
3rom which brokerage house you do tradingX
Indiabulls -eliance %thers
ngle Sharekhan
B1
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:hich way you prefer for tradingX
%nline %ffline
:hat is your current brokerage rateX
YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY ave you ever heard about Sharekhan broking firmX
Ues /o
re you interested because we have scheme going onX
+es #o
If yes then appointment is generated for live demonstration for Sharekhans online
softwareXUes /o
4I4O+RAPHY:
ists o2 boo's:
Sharekhans brochures
Investment and portfolio management and basic of share market
&erivatives" valuation and risk management by &avid .. &ubofsky 7 homas :
9iller
3inancial engineering" complete guide to financial innovation by
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