IMPORTANCE OF MNCs AND

SHARE MARKETS

PRESENTED BY:
GUHASARAVANAN. R
MARTIN SINGH.N
PRIYADHARSHAN.S
SAMITHA.N
 Introduction of MNCs and share markets

 Origin of MNCs and share markets

 History of MNCs and share markets

 Examples of MNCs and share markets

 About Sensex and nifty

 How to invest in markets

Introduction of MNC & Share
market:
A Multinational Corporation (MNC) is a big company that
operates in many different countries. These companies are
like super-sized businesses that sell products or offer
services all around the world. They play a big role in the
global economy and impact the way people live and work
in different parts of the planet.

An MNC is a huge company that works in lots of

countries. They sell things and do business all over the
world, which makes them super important in the big
picture of how the world's businesses operate.
A share market, also known as a stock market, is like a big
marketplace where people buy and sell tiny pieces of big
companies. These tiny pieces are called "shares" or "stocks."
When you own shares of a company, you're kind of like a co-
owner, and if the company does well, your shares can become
more valuable. Share markets are where people go to trade
these shares, and it is an important place where businesses raise
money and investors try to make a work.

Origin Of MNC'S
The origins of Multinational Corporations (MNCs) can be traced
back to the late 19th and early 20th centuries, although the concept
of cross-border business activities has existed for centuries.
The development of MNCs is influenced by several historical
factors:

o Colonialism: European colonial powers, such as Britain,

Spain, and Portugal, established overseas colonies and
trading posts.
o Which began in the late 18th century and continued into
the 19th century, transformed manufacturing processes,
transportation, and communication. This made it more
feasible for businesses to expand their operations beyond
their home countries.
o Technological Advancements: - Advances in transportation,
like steamships and railways, reduced the costs and time
associated with long-distance trade.
o Telecommunication innovations, such as the telegraph and
later the telephone, improved global communication.

Origin of share markets

The origins of share markets, also known as stock markets, can
be traced back to several centuries ago, and they have evolved
over time.

o Amsterdam Stock Exchange: - One of the most notable

early stock exchanges was the Amsterdam Stock
Exchange, established in 1602 by the Dutch East India
Company.
o London Stock Exchange: - The London Stock Exchange
(LSE) was founded in 1698, primarily as a coffeehouse
where traders could meet and conduct business. Over
time, it evolved into a formal stock exchange, serving as a
model for the development of other stock markets.

o Early American Markets: - In the United States, the

Philadelphia Stock Exchange (1790) and the New York
Stock Exchange (NYSE, 1792) were among the first
stock exchanges to be established. The NYSE became a
prominent global exchange.
 History of MNC's
The history of Multinational Corporations (MNCs), also known as
Multinational Enterprises (MNEs) or Transnational Corporations
(TNCs), dates back several centuries. MNCs have played a
significant role in shaping the global economy and international
business landscape. Here is an overview of the history of MNCs:

o Early Mercantilism (16th-18th centuries):

• The British East India Company (founded in 1600) and the

Dutch East India Company (founded in 1602) are among the
earliest examples of MNCs. They were granted charters by
their respective governments to engage in trade and colonial
activities in Asia.
o Industrial Revolution (18th-19th centuries):

• The Industrial Revolution in Europe, which began in the late

18th century, led to significant technological advancements and
the emergence of large-scale manufacturing enterprises.
• This period saw the growth of MNCs in industries such as
textiles, steel, and machinery. Companies like the British-based
Imperial Chemical Industries (ICI) and Germany's Siemens
started expanding internationally.

o Post-World War II Era (20th century): -

• The aftermath of World War II saw the rise of MNCs as a

dominant force in the global economy.
• The establishment of the Bretton Woods institutions
(International Monetary Fund and World Bank) and the
General Agreement on Tariffs and Trade (GATT) facilitated
international trade and investment, encouraging the growth of
MNCs.

• American corporations like IBM, Coca-Cola, and General

Motors expanded their operations globally.

History of share markets

The history of share markets, also known as stock markets or
equity markets, is a fascinating journey that dates back
centuries.
o Early Trading Practices (18th and 19th Centuries): -

Stock trading in the 18th and 19th centuries was

characterized by open outcry trading on the trading floors of
stock exchanges. Traders would gather and negotiate prices
through verbal agreements.

o Stock Market Crashes and Regulation (20th Century):

The 20th century saw the stock market endure several

significant crashes, including the Wall Street Crash of 1929,
which precipitated the Great Depression.
Examples of MNC's
1.Apple Inc.: Apple is a multinational technology company based in
the United States. It designs, manufactures, and markets consumer
electronics, software, and services globally.
2.Microsoft Corporation: Microsoft is another U.S. based
multinational technology company known for its software
products such as Windows, Office, and cloud services like

Azure.
3.Toyota Motor Corporation: Toyota is a Japanese
multinational automotive manufacturer. It is one of the
largest automakers in the world.
4.Samsung Electronics: A South Korean conglomerate,
Samsung is a global leader in electronics, particularly
in smartphones, televisions, and semiconductors.
5.Nestlé: Nestlé is a Swiss multinational food and
beverage company. It is one of the largest and most
diversified food companies in the world, producing products
ranging from coffee and chocolates to baby food and pet care.
6.Amazon.com: Based in the United States, Amazon is
a multinational e-commerce and technology company
known for its online retail platform, cloud computing
services (Amazon Web Services), and digital

streaming.
7.Nokia Corporation: Nokia is a Finnish
multinational telecommunications, information technology,
and consumer electronics company. It was once a
 dominant force in the mobile phone industry and has
diversified its business

8.Volkswagen Group: Volkswagen is a German multinational

automotive company that manufactures a range of vehicles under
various brand names, including Volkswagen, Audi, Porsche, and
more.

5.Coca-Cola Company: Coca-Cola is an American

multinational beverage corporation known for its soft drink
brands, including Coca-Cola, Diet Coke, and Sprite. It operates
globally and is a symbol of the soft drink industry.
 Examples of Share market
Share markets, also known as stock markets or equity
markets, are financial platforms where investors buy and sell
shares (equity) in publicly-traded companies.

New York Stock Exchange (NYSE): Located in New York City,

NYSE is one of the largest and most prestigious stock exchanges
globally. It lists many prominent U.S. and international
companies.
London Stock Exchange (LSE): Located in London, the LSE is
one of the world's oldest stock exchanges. It lists a wide range
of companies from various sectors.
Bombay Stock Exchange (BSE): The BSE is one of the oldest
stock exchanges in Asia and is in Mumbai, India. It lists a wide
range of Indian companies.
Toronto Stock Exchange (TSX): The TSX is the largest stock
exchange in Canada and lists numerous Canadian and
international companies.
 About Sensex
The Sensex, short for the "Sensitive Index," is a stock market index
in India. It represents the performance of the top 30 companies
listed on the Bombay Stock Exchange (BSE).

The Sensex is a critical indicator of the overall health and trends in

the Indian stock market. When the Sensex goes up, it means that, on
average, the stock prices of the major companies are rising.
Conversely, when the Sensex goes down, it suggests that, on average,
these companies' stock prices are falling.
• Investors, financial analysts, and the media often use the
Sensex as a gauge to understand the direction of the
Indian stock market and to track its performance over
time. It provides valuable insights into the economic and
financial conditions in India.
 About Nifty
Nifty, short for the "National Stock Exchange Fifty," is
another key stock market index in India. It represents the
performance of the top 50 companies listed on the National
Stock Exchange (NSE). In simple terms.
Just like the Sensex, the Nifty is a crucial indicator of the
overall health and trends in the Indian stock market. When the
Nifty goes up, it means that, on average, the stock prices of
these 50 major companies are rising. Conversely, when the
Nifty goes down, it suggests that, on average, these companies'
stock prices are falling.
How to invest in share market?
Investing in stock markets can seem complex, but in simple terms,
here is a step-by-step guide to get started:
1.Learn the Basics:

Understand what stocks are- Stocks represent ownership in a

company.

2.Set Clear Goals:

• Determine why you want to invest. Is it for retirement, a
major purchase, or wealth-building?
• Define your risk tolerance - how much risk are you willing to
take?
3.Create a Budget:
• Ensure you have enough money to invest after covering your
essential expenses.
• Never invest money you cannot afford to lose.
4.Open an Account:
• Choose a brokerage platform: Online brokers make it easy to
buy and sell stocks.
• Sign up, provide necessary information, and link your bank
account.
5.Research:
• Look for companies you believe in or industries you
understand.
• Analyse financial reports, news, and market trends to make
informed choices.
6.Start Small:
• Begin with a small investment to gain experience and
confidence.
• Diversify your investments by buying shares in different
companies to spread risk.
7.Buy Stocks:
• Use your brokerage account to search for and buy stocks.
• Specify the number of shares you want to purchase and the
price you are willing to pay

8. Monitor and Stay Informed:

• Keep an eye on your investments regularly but avoid making
impulsive decisions based on short-term fluctuations.
• Stay updated on company news and broader market trends.
9.Hold for the Long Term:
• Investing in stocks is typically a long-term endeavour. Avoid
frequent buying and selling (day trading) unless you have
expertise in it.
• Be patient and let your investments grow over time.
10.Review and Adjust:
• Periodically reassess your portfolio to ensure it aligns with
your goals and risk tolerance.
• Adjust as necessary, such as rebalancing or selling
underperforming stocks.
11.Continue Learning:
• Stock markets evolve, and it is essential to keep learning and
improving your investment knowledge.