A Great Concern On Stock Market Volatility Essay

Page 3: Introduction to the Financial System Page 7: Commercial Banks Page 12: The Share Market and the Corporation Page 15: Corporations Issuing Equity into the Share Market Page 19: Investors in the Share Market Page 24: Short-term Debt Page 28: Medium- to Long-term Debt Page 32: Interest Rate Determination and Forecasting Page 37: The Foreign Exchange Market Page 40: Factors that Influence the Exchange Rate Page 42: Futures Contracts and Forward Rate Agreements Page 47: Options

In the beginning, there was no real stock market. However stock exchanges did take place in smaller groups and corporations. This all took place during the 1700's where stocks were already around for a long time before that but it wasn't really popular in the United States. Stocks originally started as auctions where traders called out names of companies and the shares available. There was a auction that took place and the shares went to the highest bidders.

When an investor purchases stock, they become a shareholder which means they have ownership of “part" of the company. If the company 's profits rise, you are entitled to share in those profits. This also works the other way around. Should an investor sell their stock when the current price is lower than what they paid for it, then they would make a loss.

I have 100 thousand dollars to invest in the stock market that I will disperse among six different companies. Each of the companies that I have chosen to invest in are different types of companies so that all my money is not in one type of market. The companies that I chose consist of GW Pharmaceuticals, Callaway, Genesco, Citigroup inc., McDonalds, and Ball Corporation. Each of these companies are different market types and they are at different stages of growth. Through purchasing 100 thousand dollar’s worth of stock, I intend on these stocks doubling my money within two years.

The U.S. equity markets are characterized by its players and components. Both individuals and institutions are its customers. The size of institutions is an element used for their categorization, between retail and institutional customers \citep{AHFT}.

The whole idea of this project is to instruct us, the students, on how to buy and sell stocks in the stock market, more specifically the New York Stock Exchange. I am writing this information to the reader because by the end of this project the reader will have the knowledge in order to be successful in the stock market. The reader will learn about the three stocks I have done research on. For this project I have invested $2000 into three companies and then followed them. All three companies are on the New York Stock Exchange, I followed them from October 17 to November 11. These companies are PepsiCo aka (PEP), Walt Disney Company aka (DIS) and Delta Air Lines aka (DAL). I purchased 18 shares of PepsiCo stock for $2000, 21 shares from Walt Disney Company for $2000, and 49 shares from Delta Air Lines for $2000. The price for one share of PepsiCo, stock was $106.83 on the 14th of October, for one share of Walt Disney Company it was $91.30 and the price for one share of Delta Air Lines was $40.04 all on October 14. I chose PEP because I drink Pepsi soda and I thought it would be pretty interesting to research the company that I love to drink and follow their stocks for a month. This company just doesn’t sell your favorite soft drink, they also sell snack food and everybody loves both of these things. Plus PepsiCo is known and sold worldwide so I know

Institutions often trade of shares and institutional order’s can have a major impact on market volatility. In smaller markets, institutional trades can potentially destabilize the markets. Moreover, institutions also have to design and time their trading strategies carefully so that their trades have maximum possible

This is the first factor that affects share prices. When you get to see that more people are buying stocks, then there is an increase in the price of that particular stock. On the other hand price of stock falls when more people are selling their stocks. So it is very difficult to predict the Indian stock market. This is the main reason why you need to get in touch with a good stock market consultant. There is consultancy for you which can help you a lot on choosing the right stocks for you.

Times have changed and so have all the investment and trading options as well. Online trading activities have taken the entire financial world by storm and it is evident by the sheer number of different online trading platforms and brokerage firms emerging on daily basis. With great many advantages and benefits offered to the investors, it is obvious why; millions of traders and investors are making beelines for this interesting, online format of trading, rather than the traditional ones.

For stock market and stock brokers, the introduction of National Association of Securities Dealers Automated Quotations (NASDAQ) in 1971, the world’s first electronic stock market, made a huge impact. The NASDAQ helped lower the spread (the difference between the bid price and the ask price of the stock) and reduce significantly the delay between the initiation and execution of stock orders. Moreover, NASDAQ has provided a basis for the development of online brokers, which leads to a

Unit II: The Financial System in India - Capital markets and money markets; new issues market; secondary market – Stock exchanges in India; Listing of Securities; Registration of Brokers; SEBI regulations; Guidelines for IPO; Recent Developments in Financial System in India.

Stock market is a trading platform which provides an opportunity to buyers and sellers of securities to do transactions. As of now there are 23 recognised stock exchanges in India and 24th is likely to get functional soon. However the majority of transactions in securities happen only on the National Stock Exchange. The Bombay stock Exchange is the second largest contributor in the overall pie of total transactions. However it 's contribution is

The Indian capital market has witness impressive growth and qualitative changes, especially over the last two decades. In the fifties, sixties and most of the seventies, it was in a dormant stage when the investors were generally not familiar with, or inclined towards, the corporate securities. During this time, only few companies accessed the capital market. As a consequence, trading volumes were low during these years. The process of liberalization of the Indian economy since the early nineties has contributed to changes in the capital market scenario. The entry of

view to study potential of financial derivatives and intensification of derivatives as a hedging instrument. NSE traded derivatives have shown an exponential growth in market turnover, it has grown from Rs 2365 cr. in 2000-2001 to Rs 22916531.92 cr. in 2015-16. NSE can be considered as the one of the high-flying exchanges amongst the entire emerging markets in terms of equity derivatives. The following study tries to make an understanding of operational concepts of F&O mechanism. It encompasses analysis of Nifty Index future & options one month delivery contacts to get

A foreign direct investment has become a striking measure of economic development in both developed and developing countries. FDI and FII thus have become instruments of international economic integration and incentive. Fast growing economies like China, Singapore etc., have registered unbelievable growth at onset of FDI. Though US captures most of the FDI inflows, developing countries still account for significant growth of FDI and rise in FII. FDI not only gives access to foreign capital but also provides domestic countries with cutting edge technology, desired skill sets, tools of innovation and other harmonious skills. The policies drafted to stimulate the flow of foreign capital in to India provided much needed an external (or) internal for India to emerge as an attractive destination for foreign investors. External factors such as global economic cues, FDI & FII, Exchange rate and Internal factors such as demand and supply, market cap, EPS generally drive and dictates the Indian stock market. The current paper makes an attempt to study the relationship and impact of FDI & FII on Indian stock market using statistical measures namely correlation coefficient and multi regression during the study period from 2005 to 2014. Sensex and Nifty were considered as the representative of stock market as they are the most popular Indian stock market indices. It concludes that Flow of FDIs and FIIs in India determines the trend of Indian stock market during the study