Indian stock exchanges are suffering from weak and deficient management and also certain flaws in their structure. The country face high inflation for much of the year, but that inflation is reported to have dropped to 2.
Meaning of Stock Exchange 2. The stock markets establish a system of market makers at par with all leading stock exchanges of the world. Stock Market exchange essay or exchange is, therefore, an important institution for running the corporate type of firm in a smooth manner.
Such information will also help the authorities to restrict and regulate the stock markets properly. The present large scale production system favours formation of joint stock company or corporate form of organisation which is quite suitable for securing large amounts of capital from those people who possess surplus funds and are willing to take risk and invest them profitably as per their own convenience and temperament.
There are 22 stock exchanges in the country, out of which 20 SEs are regional ones with allocated areas.
This uniform system will reduce the risk missing out of price movements in shares and also check the strong tendency towards over speculation and over-concentration of trading activity in a few shares.
Floating of the Chinese Currency A Chinese toy manufacturer has the opportunity to supply a US toy Market exchange essay chain with a month supply of stuffed animals with an average landed price price in the US of 7 Yuan for 1, pieces.
Being an integral part of trading mechanism and all other arrangements, he protects the investors from its exploitation by the stock brokers and ensures the transactions of shares at best possible market rates and also ensure prompt execution of transactions and liquidity.
The buyer of stocks and securities can realise their invested capital by selling those stocks and shares to others ready to buy the same at the prevailing price in the stock exchanges.
Major Problems in Trading 6.
Stock markets establish nexus between savings and investments of the community. By investment transaction, we mean purchase or sale of securities which are done with the long term prospect relating to their yield and price.
This Act has made the securities of public limited companies freely transferable and also provides for maintenance of ownership records in the book entry form. In this market owners can dispose of their securities as per their likings.
Stock market or exchange is, therefore, an important institution for running the corporate type of firm in a smooth manner.
Among all these stock exchanges, Bombay Stock Exchange is the premier exchange in the country, which transacts nearly 70 per cent of total transactions made in all the stock exchanges of the country.
The first one suggests to adopt the margin trading system of USA in which commercial banks provide financial support to the extent of 50 per cent to the buyer in the stock market trading after necessary pledging of shares with a bank.
Another important function of stock markets or exchanges is to provide a market place for the purchase and sale of securities to the original subscriber and a huge number of buyers for attaining its free transferability.
As the purchase and sale of securities are centralised in that market so the purchaser usually get a ready seller and the seller usually get a ready purchaser at a competitive price for making necessary transaction on their securities. In order to unify all stock exchanges in India on a national basis, all the SE should introduce a uniform system of one-week settlement.
The situation in Japan is worse. By investment transaction, we mean purchase or sale of securities which are done with the long term prospect relating to their yield and price. This is bad news all round, and earning yen right now it not wise. Gupta suggested two alternatives against this system.
Complain from the investors remain uncared and unattended. Again, the system of imposition of margins has also failed to control excessive speculation in stock exchanges. Nature of Transaction and Speculation: Thus the stock exchanges usually provide a systematic regular and continuous market for both buying and selling of old securities.
But there is lack of proper integration among these stock exchanges. The idea of speculation in a stock exchange indicates purchase and sale of a security or share at a particular point of time with the sole object of making windfall profit by its sale or purchase at another point of lime.
Indian stock exchanges are so designed that it provides much benefit to the brokers and ignores the genuine interests of the investors.Words: Length: 4 Pages Document Type: Essay Paper #: Foreign Exchange Market of China The foreign exchange market is a financial market for trading currencies.
The market is decentralized and there are financial centers around the world that operate as places of trade, where different types of buyers and sellers can trade the currencies.
The Foreign Exchange Market is a market that converts the currency of one country’s into another country’s (Ball et al, ). The foreign exchange market is the largest financial market in the world. 1. Essay on the Meaning of Stock Exchange.
Industrial securities market can be broadly divided into two parts, i.e., namely, primary markets or new issues market (NIM) and secondary markets or stock markets.
Foreign Exchange Market Summary The foreign exchange market is the market in which national currencies are traded.
As in any market, a price must exist at which trade can occur (Woodbury ). Foreign Exchange Market The foreign exchange market is one of the most important financial markets.
It affects the relative price of goods between countries and so can affect trade. Foreign exchange means claims on another country held in the form of the currency or interest bearing bonds of that country i.e.
converting one national currency into another country's national currency/5(18).Download