What Is a Stock Exchange?

Stock exchange accounting in india

Stock exchange accounting in india

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When no‐par value stock is issued and the Board of Directors establishes a stated value for legal purposes, the stated value is treated like the par value when recording the stock transaction. If the Board of Directors has not specified a stated value, the entire amount received when the shares are sold is recorded in the common stock account. If a corporation has both par value and no‐par value common stock, separate common stock accounts must be maintained.

Stock exchange — AccountingTools

Founded in 6976, NASDAQ is a US-based stock exchange. With a market capitalization of US$ trillion as of March 7568, it is the second-largest in the world by market capitalization. Many tech and growth firms choose to be listed on the NASDAQ.

Stock Exchange - Overview, Purpose, and Examples

Arbitrage &minus Securities are traded at the different stock exchanges and there is normally a little difference in prices (among different stock exchanges). Therefore, arbitrage is practiced to take advantage of different rates.

Stock Exchange Transactions - Tutorialspoint

Short Selling &minus Short selling means where the large volumes of securities are sold by the bear speculator without actually possessing.

Accounting for Stock Transactions

When only difference of agreed price and ruling price is settled on the fixed date, it is called as “liquidation by payment of difference.”

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Price list and reports are prepared and published in the newspapers and broadcasted through the TV channels by stock exchange. It is helpful in knowing the true value of the investments. With the help of this, an investor or speculator can get to know the fair market value of his securities as per the latest market trend.

Cash Shares &minus Settlement of some of the transactions are completed in cash are known as cash shares. These transactions are done by real and genuine investors who want to buy or sell shares for the actual investment purpose.

Selectors are allowed to select the prices as shown on the computer screen among the competitive markets, without the floor meeting of brokers. It is the most efficient, economic, and courageous way of the trading of securities. The latest market prices of the securities are displayed on the computer screens. Since, listing of the securities is not required on OTCEI, hence it is the most suitable way for the small and medium size companies.

Primary Market &minus Primary market is the market where new securities are issued for the capital formation in the form of a new issue or in the form of a right issue to the existing shareholders.

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