Indian experience of multiple stock exchanges - Free Essay Example

Sample details Pages: 4 Words: 1319 Downloads: 1 Date added: 2017/06/26 Category Marketing Essay Type Narrative essay Did you like this example? In India, we have had over a decade of experience with multiple stock exchanges and line operators arbitraging between these markets. This has been a fairly well accepted idea. The number of investors opting for  on-line  trading has gone up manifold, according to the recently published ‘Indias Leading Equity Broking Houses, 2008? by Dun Bradstreet (DB). The publication says that less than 10% of the 191 broking firms surveyed reported huge growth in opening of e-broking accounts and some firms saw a surge in value of up to 400% in e-broking during 2009. According to the report, number of e-broking accounts registered in 2009 have grown exponentionally. Indiabulls Securities Ltd added 4,51,611 accounts while a relatively new firm in the industry, Reliance Money added 2,15,678 accounts during the same time period.   Since the banking system is not fully integrated with the securities markets, brokerage firms face limitations in raising f inancial resources for business and expansion. With buoyancy of the stock markets and the rising prospects of several well organized broking firms, important opportunity to access capital markets for resource mobilization has become available. The recent past witnessed several leading brokerage firms accessing capital markets for financial resources with success. The capital market in Pakistan is still in its infancy commensuration with the stage of economic development and transition from agricultural base to industrial based set-up. Broadly capital market includes various institutions like Commercial Banks, Investment Banks, Leasing Companies, Modarabas and Stock Exchanges. But it specifically connotes money market operations and marketing of securities through stock exchanges. The Stock Exchange is a formal association of agents who deal in shares and securities and execute the order of their customers on commission basis. An agent usually has an office with sufficient informa tion sources, current quotations and advisory expertise to assist investors in making decisions. They also must know where to find the buyers and sellers for the securities and arrange membership or contacts with the other stock exchanges operating in the country. Besides providing incidental services like financing the transactions and storage of securities. The main function of a stock exchange is to provide a place where the agents can bring their orders in respect of given list of securities. In this way buying and selling orders and transactions are matched and completed where customers gets the required service and the agents earn commissions. The working of Stock Exchange in India is regulated by Corporate Law Authority. Like Stock Exchange in other countries. Stock Exchanges in our country are also governed by business practices and extensive rules regarding method of trading in securities. Basically these regulations are made to protect the investors and also to assist m embers and develop Stock Exchange. Although the floor rules vary in nature yet they ensure the set routine and proper handling of orders. These rules try to ensure that agents or members should not take unfair advantage to the detriment of investors. While listing a stock or bond the Stock Exchange forges an understanding with the issuing company in matters like allotment, and transfer of securities, declaration of dividends, and issuance of right and bonus shares and the publication of accounts reflecting the affairs of the company. The rules also include registration of stocks and certificates and publication of Balance Sheets as a pre-condition to get listing in Stock Exchange. These rules and regulations if applied properly bring prestige to Stock Exchanges and create confidence amongst the investors. A central idea in modern finance is the law of one price. This states that in a competitive market, if two assets are equivalent from the point of view of risk and return, they should sell at the same price. If the price of the same asset is different in two markets, there will be operators who will buy in the market where the asset sells cheap and sell in the market where it is costly. This activity termed as Share Broking Houses, involves the simultaneous purchase and sale of the same or essentially similar security in two different markets for advantageously different prices. The buying cheap and selling expensive continues till prices in the two markets reach equilibrium. Hence, Share Broking Houses helps to equalize prices and restore market efficiency. The evolution of Indian stock market had been emerged in the year 1975, when Congress directed the SEC to develop a national market system in which all orders to buy or sell equities would interact. It would have been considered that a national market system abhors fragmentation and assumes that one market will best serve the needs of all investors. However, such an assumption would not capture the realities of modern markets. Every individual investor has different needs and different markets will develop to serve these needs. Markets are non anonymous, and in such markets, the most important concept of trading best price is not defined. The fragmented markets are a natural result of competition among investment options. The sharing of trade and quote information among markets helps to mitigate any deleterious effects of fragmentation within the Indian stock market. It would have also been considered that the markets of tomorrow will be global. Therefore in an Indian market, the SEC will have to give up its goal of a national market system and focus on other issues related to the world as a whole for the investors. For an instance, it will be a challenge to provide just the sharing of trade information of equities/commodities across the borders of globe. Further, a technological evolution will allow the investors in order to gathering information to be located anywhere in the world from the common market centre. Hence, this threat of relocation will place a restriction on Indian regulators, and global trading will make it more difficult for SEBI authorities to regulate investment practices and opportunities and to protect Indian investors from such difficulties. Also, the equity markets worldwide are in a state of change. As we already mentioned that the technology and the internet have had and will continue to have a deep impact on the structure of the equity markets. Some of the recent rulings from the SEBI have unleashed new competitive forces that will challenge established markets which already existed. There are some constraints and processes such as date, the cost and awkwardness of the settlement processes across the nations which had restrained global competition, but these processes were changing. As the time passes, the cross-border settlement becomes cheaper and easier to invest for an investor, as a result the global trading may increase and Indian regulators will need to adapt to this new environment. Consequently, the amendments in the year 1975 to the Securities Exchange Act of 1934 set as a national goal which state that all securities should be traded in a national market system. This goal has shaped out much of the security exchange controls thinking since that time; however this goal may collapse with some of the ongoing structural changes which might occur in the equity markets, in both domestically and worldwide. A national market system of a country represents a naÃÆ'ƒÂ ¯ve and parochial view of the way in which equities traded. It is incompatible in a way with how the markets in the country are developing and will develop in near future. As mentioned above that a national market system needs to abhor fragmentation as the fragmentation limits interaction among order flow. Since, the fragmentation has emerged as the heart of competition for investors. It has been coded by many of the research er that the new competition creates fragmentation, but significant fragmentation will occur only if the competition is successful. In case, the competition is extremely successful, existing markets will decline and fail, resulting ultimately in less fragmentation. Therefore with due effect of the increasing the world globally, the SEBI will have to give up its goal of a national market system, begin to recognize the global nature of the equity across the India. Don’t waste time! Our writers will create an original "Indian experience of multiple stock exchanges" essay for you Create order

The Patriot s History Of The United States - 1589 Words

After the Civil War, the United State began to experience an industrial growth that was unparalleled to any nation. There were new advancements among America’s transportation, manufacturing and agriculture industries. While an economic growth was occurring in the nation, the national government was inactive, almost forgotten between all the new innovations achieved during the late 19th century. Looking back at the Industrial Revolution, there are many perspectives of the events that occurred during this time. Two readings on the late 19th century, The Patriot’s History of the United States, by Larry Schweikart and The People’s History of the United States, by Howard Zinn, have their own takes. The perspectives on the history, the tone†¦show more content†¦Even though the new inventions were ground-breaking and revolutionary, The People’s History of the United States were quick to point out the cruel conditions it brought. However, The Patriot’s History of the United States, had a different perspective. Larry Schweikart spoke more positively of the economical situation in America. The wages were â€Å"In terms of that era’s cost of living†¦sufficient† and used an example of what a typical family in Atlanta might earn and spend (Schweikart 435). The perspective of the wages differ from the two authors. Howard Zinn had a negative tone toward the low wages, while Larry Schweikart kept a more positive tone towards worker’s pay. In fact, the two authors collide on the importance and significance of the elite class. Larry Schweikart wrote favorably of the millionaire that rose up during this era. Schweikart wrote on page 436, â€Å"The good news was that there were more of the wealth.† Larry Schweikart perspective on the rising class was that the rich were beneficial to society, with their new ideas and in novations. On the other hand, Howard Zinn painted the rich as corruptible, and greedy. The Industrial Revolution brought new technology that paved the way for the modern corporation. While some believed the top executives of these businesses started from the bottom and rose to the top, Howard Zinn had a

Stuff for Echemendia Essay Example For Students

Stuff for Echemendia Essay #2The ancient grudge between the two families affects the whole city becausethey have to live in this atmosphere created by the two families fighting. In the movie, this effect was seen to full because it showed the twohouses servants starting a fight and then everyone else moving to theside, running into their houses, and closing their shutters, as if theyknew what would happen next. That is what the two families fighting causethe city. Fear. Fear that the city has against what the two families coulddo to each other could cause a civil war between the city, the Montagues,and the Capulets. #5The two men are different because Paris is more intent and lean towardsgetting married while Romeo is interested in the IDEA of love, romance,marrage, and seem to love the idea of doing dirty bad things with Julietand paste them off by calling them things lovers do. If I were Julietsdad, I would personally pick because neither both do not really Love mydaughter but I was asked to pick one so Paris would be the suitor. Pariswould be the suitor I would be most comfortable one with because ParissIdeas are just for marriage not for.sex. #6Capulets stand on marriage the first time is awkward because he does notwant to marry off Juliet to Paris just yet. He was being noble when he saidhe wanted Juliet to enjoy her childhood more. The thing is after Tybaltkills Mercutio (the princes cousin) Capulet thinks that the Prince must beangry with him so to try to get him happy (he thinks) he will marry Paris,who is another relative of the Prince, to Paris. Juliet is 13 which a youngage for girl to get married in our standards. #7Capulet does not drive Romeo out of because in his words he did not want toruin the party. He wanted a chance to get away from all the fighting andall of the constant feuding between the two families and I think Capuletknew that the city was tired of their feuding and in a way Im sure he knewwhen people came they were afraid that a Capulet and Montague fight wouldoccur. Capulet was happy of the high attendance and knew if he had a brawloccur that people would not come anymore because of the fear that a fightwould occur. #8Juliet was afraid that Romeo was just another player looking for a girl todo his thing with then leave her

The Major Powers of the Second World War

Before the Second World War, a number of world powers, including Britain, France, and the US had attained their war objectives. This implies that they had prepared amicably to face any enemy in the international system. Before the war, Germany had been reduced to a military cipher while the rest of European powers had been weakened economically.Advertising We will write a custom essay sample on The Major Powers of the Second World War specifically for you for only $16.05 $11/page Learn More In other words, France and Germany had hegemonic powers in Europe because their militaries could not be matched with those of other states in the continent. In the postwar period, Britain and France could not agree over simple issues because of mistrust and suspicion. In fact, they were unable to control major issues affecting the continent, particularly security issues. The British and French could not come with a single foreign policy that could dictate what was to be done in the continent. Since the two major powers could not agree over issues, they adopted the policy of appeasement, which was very dangerous to other states. Britain and France came with a resolution to appease Germany to abandon its military programs, which were related to arms race. The two powers believed that appeasing Germany would pave way for negotiations and peaceful resettlement of conflicts. European states could not pay the US its debts, which forced the US to adopt isolationist policies. The US decided to keep off from European problems. The treaty of Versailles could no longer hold because many countries had been forced to pay debts that did not belong to them. Germany had been forced to enter into compensation program, which stated that the Germany populace had to compensate other nations that had lost their resources during the First World War. With the above factors, the Second World War was inevitable. The First World War veterans felt that their governments h ad not honored them in any way. They resorted to circulating new, radical ideas, which were very dangerous to global peace. For instance, fascism was circulated in Italy, which was later adopted by Hitler and his Nazi Party. After the First World War, the victors stated that they would do everything to preserve peace in the world. Germany was one of the losers, which was forced to adopt democracy. Instead of adopting democracy, states turned to fascism, which is compared to nationalism. A number of states observed that they were being forced to obey some of the rules and regulations that were inconsistent to their culture and beliefs. Germany and Italy are some of the nations that resorted to fascism (nationalism) because they believed that countries such as Britain and France were inferior to them. Benito Mussolini was the first leader to adopt fascist ideologies in 1922. In the late 1920s, Hitler joined Mussolini in preaching racism. Hitler promised the Germany populace to create more space for them. In 10930, Germany was hit by a financial crisis, which gave Hitler and his party a chance to introduce fascism. He claimed that foreigners destabilized the economy of the country. Hitler promised Germans that he could everything to achieve their lost glory. He became aggressive to an extent of attacking other states without a valid reason.Advertising Looking for essay on history? Let's see if we can help you! Get your first paper with 15% OFF Learn More While some countries collaborated with Germany, some opposed its move strongly. Those that opposed its mission faced severe consequences because they were badly destroyed. The countries that resisted Hitler’s ambition were referred to as the Allies of the Second World War. The Allies decided to resist Hitler’s ambitions because they were directly affected. Countries that supported Hitler’s ambitions were referred to as the Axis. The Axis decided to support Hitler because they we re faced with similar threats. As earlier noted, the Versailles Treaty affected a number of countries, which ganged up to fight for their rights. Some of the Allies of the Second World War include France, the United Kingdom, Austria, Canada, New Zealand the Soviet Union and later the United States. Italy and Japan were the only countries that collaborated with Germany during the Second World War. The collaborators shared one thing, which was the hegemonic power. After the Second World, the Grand Alliance was formed. The alliance consisted of the United States and the Soviet Union. The US was under Franklin Roosevelt while the Soviet Union was under Joseph Stalin. Winston Churchill controlled Great Britain. After the Second World War, the Grand alliance had an ambition of controlling the affairs of the world. However, the two major partners differed over the best policy to be applied in the development of the economy. The US adopted capitalism while the Soviet Union adopted communism . This difference led to a war referred to as the Cold War. The Cold War was fought in a number of ways. However, it was not a serious war as compared to the previous wars. The war changed the international system because it came bipolar. Before the Cold War, the international system was multipolar because there were various powers, including Germany, Britain, Japan, Russia, and China. Cold War brought about the new world order because power was distributed between two states only. This essay on The Major Powers of the Second World War was written and submitted by user Edward B. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.