Page 71 - DCOM507_STOCK_MARKET_OPERATIONS

Stock Market Operations

Notes Audience: We used separate research modules for each unique target audience,
spanning from extreme B2B to consumer segments

Recruiting: We did not use social media to recruit research participants as to prevent
sampling bias
Techniques: Both qualitative/open-ended and quantitative research

This approach allowed AMD to refine and optimize their social media content and tactics
based on the different behaviours of each target audience.
Question
Highlight the briefing of the case.

Source: http://www.greenbook.org/marketing-research.cfm/evaluate-b2b-social-media-strategies

3.8 Summary

Primary market of a country renders three major services: investigating and processing of
proposals for new issues, underwriting of new security issues and distribution of new
securities to ultimate investors. These functions are carried out by specialized agencies
like financial institutions, brokers and dealers in securities.
There are various methods of selling securities, viz., public issue through prospectus,
offer for sale, private placement, right issue, over-the-counter-placement, stock option
and book building.
Stock exchange is the secondary market, which provides a place for regular sale and
purchase of different types of securities like shares, debentures, bonds & government
securities. It is an organised market where all transactions are regulated by the rules and
laws of the concerned stock exchanges.
The functions of a stock exchange are to provide ready and continuous market for securities,
information about prices and sales, safety to dealings and investment, helps mobilisation
of savings and capital formation. It acts as a barometer of economic and business conditions
and helps in better allocation of funds.

Stock exchanges provide many benefits to companies, investors and the society as a whole.
But they also suffer from limitations like exclusive speculation and fluctuation in prices
due to rumours and unpredictable events.
Along with genuine investment, at times, stock exchange transactions may be undertaken
by persons as a speculation.

There are 23 stock exchanges in India presently, including BSE, NSE and OTCEI.
Stock Exchanges are regulated by the Securities Contracts (Regulation) Act and by SEBI.
SEBI has initiated a number of reforms in the primary and secondary market to regulate
the stock market. Documentary and procedural requirements for listing and trading have
been made stricter and foolproof to protect investors’ interest.

3.9 Keywords

Book-building: A process by which a demand for the securities proposed to be issued by a body
corporate is elicited and built-up and the price for such securities is assessed.
Brokers to an Issue: It represents intermediaries who are concerned with procuring the
subscription to the issue from prospective investors across the country.

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