The document discusses the differences between an over-the-counter (OTC) exchange and a stock exchange. An OTC exchange provides small and medium companies a low-cost way to access public funds, while a stock exchange facilitates trading of stocks, bonds, and other securities through a regulated market. Key differences are that OTC markets have no central regulator while stock exchanges are regulated markets with less potential for price manipulation.

1. Over the
counter
exchange
v/s
stock exchange

3. What is Over the counter exchange of
India
(OTC) ????
OTCEL is an electronic stock exchange with the
object of providing an opportunity to small
&medium companies to assess public funds at a
low cost.

4. Why was it set up?????
It was set up to access high-technology
enterprising promoters in raising finance
for new product development in a cost
effective manner and to provide transparent
and efficient trading system to the
investors.

5. Objectives of OTC
The objectives of the OTC are
-liquidity
-fixed
-fair price
-simplified process of buying and selling
-quick disposal of orders
-cheaper method of public sale of new issues

6. Benefits for company of OTC
OTCEI offers facilities to the company having a
issued equity capital of more than Rs.30 lakhs
Small & medium closely held company can go
public
Encourage entrepreneurship
Company can get the money before the issue in
cases of bought out deals
Easy issue marketing by using the nation-wide
OTCEI dealers network
Nation wide trading by listing at just 1 exchange

7. Benefits for investors
Easily accessible by any investor
Provide greater confidence to investors because
of the complete transparency in India
Transactions are fast and completed quickly
Ensures security, liquidity, by offering 2 way
quotes,
OTCEI is an investors friendly exchange with
single window clearance for all investor requests.

8. What is Stock exchange ????
A stock exchange is an entity that provides services
for stock brokers and traders to trade stocks, bonds,
and other securities. Stock exchanges also provide
facilities for issue and redemption of securities and
other financial instruments, and capital events
including the payment of income and dividends.
Securities traded on a stock exchange include shares
issued by companies, unit trusts, derivatives, pooled
investment products and bonds.

10. History of Stock Exchange
In 1609, investors led by one Isaac Le Maire formed history's first bear
syndicate.
The Dutch West India Company was formed in 1621, bringing a new
issuer to the burgeoning securities market.
On February 8, 1971, NASDAQ, the world's first electronic stock
exchange, started its operations.
A bond issued by the Dutch East India Company, dating from 7
November 1623, for the amount of 2,400 florins.

11. Facts about the Stock Exchange
The Code of Hammurabi recorded interest-bearing loans.
In 1609, investors led by one Isaac Le Maire formed history's first bear
syndicate.
The Dutch West India Company was formed in 1621, bringing a new
issuer to the burgeoning securities market.
NASDAQ was the first electronic stock exchange.
By 1698, a broker named John Castaing, operating out of Jonathan's
Coffee House, was posting regular lists of stock and commodity prices.
Those lists mark the beginning of the London Stock Exchange.
On February 8, 1971, NASDAQ, the world's first electronic stock
exchange, started its operations.

12. The role of stock exchanges
Raising capital for businesses
Mobilizing savings for investment
Facilitating company growth
Profit sharing
Corporate governance
Creating investment opportunities for small investors
Government capital-raising for development projects
Barometer of the economy
Speculation

13. Major stock exchanges of the world
New York Stock Exchange, New York City
London Stock Exchange, the City of London
Tokyo Stock Exchange, Tokyo
Hong Kong Stock Exchange, Hong Kong
Bolsa de Madrid, Madrid
Bombay Stock Exchange, Mumbai
Toronto Stock Exchange, Toronto
Sao Paulo Stock Exchange, Sao Paulo
Australian Securities Exchange's Sydney exchange centre, Sydney
Frankfurt Stock Exchange, Frankfurt
Paris Stock Exchange, Paris
SWX Swiss Exchange, Zurich
Mexican Stock Exchange, Mexico City

15. Difference between OTC &
Exchange
In exchange markets, there’s a regulator (exchange)
through which transactions are completed, while in
OTC markets there is no regulator.
Exchange markets have less chances of price
manipulation, while the many competing traders in
OTC markets can manipulate prices.
Exchange markets ensure transaction security, while
OTC markets are prone to fraud and dishonest
traders.