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Monday, 2 April 2012

Stock Exchange Functions:

 Stock Exchange Functions:
A Stock Exchange is a place whether incorporated or not assisting, regulating and controlling to carry the particular transaction in buying, selling and dealing with the securities.

Raising Business Capital:
Some companies invest the surplus amounts in the form of securities and to earn capital gains.that helps to rise the capitals of the business

Encourages Savings:
It encourage the savings for investor to save funds that are invested in the shares (capital gains) Provides a mart for the trading of securities to individuals and organizations. Seeking to their action or overmuch finances through the purchase of securities.

Facilitating Economic or Company Growth:
It also facilitates to economic growth for expanding the product lines, distribution channels, market share and other necessary business assets.

Redistribution of Wealthiness:
Redistribute wealth by capital gains that are gained from their investments. Management records of circle a broad and diversified reach of owners, companies mostly lean to alter on their management standards and efficiency in dictate to cater the requirements of their shareholders and the writer tense rules for unrestricted corporations imposed by world inventory exchanges and the government.

Barometer of Economic Growth:
The rise or fall in price depend upon the demand and supply of the market hence it acts as the barometer of the economic growth.

Provide Physiological Location for Line of Securities:
Helps in purchasing and selling securities to the inverters as and when needed.

Establish Rules & Regulations of Trading of Shares:
Can create their own system of rules and regulations to regulate the stock market , all needed to follow those rules and regulations.

Fair Activities:
it restricts or prohibits  the unfair trade practices.

Effective Activity:
This agency that orders are executed and transactions are resettled in the fastest likely way in acquire mercantilism.

SPECULATORS AND TYPES:
The Main functions of  stock exchange is to allow to buy and sell the shares. It regulates with their own rules and controls to unfair trade practices.there are 4 kinds of speculators in BSE stock exchange.that are as follows:

Bulls:
He is also called as Tejiwala. Bulls always expects in rise in price of the securities.In initial stage they will purchase the shares at low price when the price rises he will sell the shares.He enjoys the gains with rise in prices.he is always an optimistic person.

Bears:
He is also called as Mandiwala. He will sell the shares at the present prices if he thinks the share value will goes down in future. He enjoys the gains with drop in prices. He is pessimistic.

Stags:
He applies shares of new companies for premium allotment, selects the companies only that are having more demand. He will sell those share at gains.

Lame Ducks:
When speculator bulls or bears finds out difficult to provide shares to his clients at promised prices then he will struggle like a lame duck..

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