The stock market tends to be a leading indicator of the business cycle, since investors look to other indicators and tend to exit the market at or before an economic contraction and return to the market during recovery.

1. *
Easy way to earn money
Easy way to loose money

2. * A stock is a share in the ownership of a company. Stock
represents a claim on the company’s assets and earnings
* Stock exchange is that place where trading of shares is
*
done in terms of sale and purchase
SAJNA FATHIMA,SMBS, MGU

3. *
Stock Exchange
People using
terminal
provided by their
brokers
SAJNA FATHIMA,SMBS, MGU

4. *BROKER: He is one acts as a intermediary
on behalf of others. A broker in a stock
exchange ,is a commission agent who
transacts business in securities on behalf of
non members.
*JOBBER: He is not allowed to deal with the
public directly .He deals with brokers who
are engaged with the investors . Thus, the
securities is bought by the jobber from
members and sells to members who are
operating on the stock exchange as broker
*
SAJNA FATHIMA,SMBS, MGU

5. *
SAJNA FATHIMA,SMBS, MGU

6. IMPORTANCE OF STOCK MARKET
Provides a source of funding for organisations.
An investment avenue.
A source of income for investors.
A source of revenue for government in the form of
taxes.
A source of employment opportunities.
Meeting place for investors and organisations.
SAJNA FATHIMA,SMBS, MGU