Indian Stock Market

PLAIN AND SIMPLE, STOCK IS A SHARE IN THE OWNERSHIP OF A COMPANY. STOCK REPRESENTS A CLAIM ON THE COMPANY'S ASSETS AND EARNINGS. AS YOU ACQUIRE MORE STOCK, YOUR OWNERSHIP STAKE IN THE COMPANY BECOMES GREATER. WHETHER YOU SAY SHARE, EQUITY, OR STOCK, IT ALL MEANS THE SAME THING. What is Stock ?

Classification of stocks Stocks are classified as 1. Common Stock:- Common shares represent ownership in a company and a claim (dividends) on a portion of profits. Investors get one vote per share to elect the board members, who oversee the major decisions made by management 2. Preferential Stocks:- Preferred stock represents some degree of ownership in a company but usually doesn't come with the same voting rights.

What is Stock Market ? A stock market is a market for the trading of publicly held company stock and associated financial instruments (including stock options, convertibles and stock index futures).

What is Indian Stock Exchange ? Formal organizations, approved and regulated by the Securities and Exchange Board of India (SEBI), that are made up of members who use the facilities to exchange certain common stocks.

INDIAN STOCK EXCHANGES Two National Level Exchanges are 1.National Stock Exchange (NSE) 2.Bombay Stock Exchange (BSE) Total 22 Exchanges are there in India National and Regional level, all exchanges conducts 100% computerized trading.

NSE – National Stock Exchange Established In November Around 3500 Companies Are Listed Around 850 Main Brokers And Sub Brokers. Non Corporate : 35 - Corporate : 725 Daily Traded Companies Are Around 100% Average Daily Turnover Of Rs cr.

BSE – Bombay Stock Exchange Established In 1875 As "The Native Share And Stock Brokers Association". Oldest Stock Exchange In Asia. Around 7000 Companies Are Listed. Around 935 Main Brokers And 5617 Sub Brokers. Non Corporate: Corporate : 710 Daily Traded Companies Are Around 3500 Average Daily Turnover Of Rs Cr.

I N D I C E S Major Indices Sensex (BSE),S&P CNX Nifty (NSE ), CNX IT Index, CNX Nifty Junior, CNX Bank Index Other Indices CNX 100, CNX FMCG Index, S&P CNX 500, CNX PSE Index, CNX Midcap, CNX MNC Index, S&P CNX Defty, CNX Service Sector Index, CNX Midcap 200, S&P CNX Industry Indices, Customized Indices, CNX Energy Index, CNX Pharma Index, CNX Infrastructure Index, CNX PSU BANK Index, CNX Realty Index

REGULATERY BODY SEBI – Securities & Exchange Board of India  Established In 1992, As Per Securities & Exchange Board Of India, Act.  To Protect The Interests Of Investors  To Regulate The Securities Market.  To Promote The Development Of The Securities Market

Basic requirement for Investing in stocks D-Mat Account:- Saving Bank Account:- Permanent Account Number (PAN):- Trading Account with Recognized Stock Broker:-

D-Mat Account and its Benefits A Dmat account is like a Bank Account, with the difference being that instead of cash, a Dmat account holds shares. Safe & convenient way to hold securities. Immediate Transfer of Securities. No Stamp Duty on Transfer of Securities. Auto. Credit Of Shares Into Dmat Account, Arising Out of Bonus, Right Issue,Split, Merger, De-merger.

Trading Account A Trading account is required if an individual wishes to trade, i.e. buy and sell shares in the stock exchange. A Trading account can also be opened with most banks and financial institutions, after filling up the required forms and providing identity and address proofs.

Trading Process Once the Dmat account, Trading account and Bank account are in place, an individual is ready to start trading. While it is not necessary to have the Dmat account, Trading account and Bank account with the same organization.

THREE WAYS TO INVEST IN SHARES PRIMARY MARKET:- Where Company Directly Allots His Equity Shares To Investors. SECONDARY MARKET:- Where Allotted Share in Public Issue Are Bought And Sold by Investors With The Help Of Stock Brokers at Various Stock Exchanges. Future & Options:- It’s a derivative segment of Underlying securities.

PRIMARY MARKET The primary market is where securities are created (by means of an IPO). Initial Public Offering (IPO) is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO. This market is known as primary Market

SECONDARY MARKET A market on which an investor purchases an asset from another investor rather than an issuing corporation. In this market Brokers becomes intermediate body between buyer and seller.

FUTURES & OPTIONS In finance, a security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies.

DIFFERENCE IN EQUITY & DERIVATIVES SEGMENTS IN EQUITY MARKET A) DELIVERY TRADING OR CASH MARKET B) INTRADY TRADING OR MARGINE MARKET F&O MARKET IS COMBINES FEATURES OF DELIVERY AND INTRADAY TRADING PARAMETERS:- A) TIME B) NUMBER OF SHARE C) INVESTMENT D) BROKERAGE E) BILATERAL RETURNS

TYPES OF ORDERS ON MARKET ORDER LIMIT ORDER IMMEDIATE OR CANCEL (IOC) ORDER STOP LOSS ORDER TRAILING STOP LOSS ORDER

FACTORS INFLUENCING CHANGE IN STOCK PRICE DEMAND & SUPPLY, PROFITS, P.H, P/E RATIO, DIVIDENDS, BONUS SHARES, ECONOMIC NEWS, POLITICAL NEWS, COMPANY NEWS.

SOME COMMON TERMS IN STOCK MARKET BULL MARKET, BEAR MARKET, BROKERAGE, MARGINE, OPEN, CLOSE, DAY HIGH, DAY LOW, PREVIOUS CLOSE, % CHANGE, 52 WEEK HIGH LOW, RESISTANCE & SUPPORT, STT, TOT, OTLVT, STAMP DUTY.