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PRESENTED BY : JITHIN K.C

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Presentation on theme: "PRESENTED BY : JITHIN K.C"— Presentation transcript:

1 PRESENTED BY : JITHIN K.C
SHARE MARKET PRESENTED BY : JITHIN K.C

2 WHAT IS A SHARE AND SHARE MARKET?
Shares are issued by companies in order to raise capitals and are bought by investors in order to acquire ownership in a business. A stock market or equity market is a market for trading the company stock (shares) .

3 Who is a share holder ? A share holder (or stock holder) is an individual or company (including a corporation) that legally owns one or more shares of a company. Share holders are granted privileges to have company’s dividends and bonuses.

4 Why does a company issue shares in to the public ?
A company may want additional capital to invest in new projects. Financing a company through the sale of stock in a company is known as equity financing.

5 Stock Exchanges in India
There are 22 stock exchanges in India. But, two of them are biggest. NSE (National stock exchange) - is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades. BSE (Bombay stock exchange) - is the oldest stock exchange in Asia with a rich heritage of over 137 years of existence.

6 NATIONAL STOCK EXCHANGE
Location: Mumbai Index: Nifty Consist of group of 50 Stocks Date of Launch: April 1994 Timing: AM to PM Members 726

7 Bombay Stock Exchange Location: Mumbai Index: Sensex
Consist of group of 30 Stock Date of Launch: 03 January 1986 Timing: AM to PM Listed Co. : over 6000

8 HOW TO DEAL AND INVEST IN STOCK EXCHANGE ?
The market regulator, the Securities and Exchange Board of India (SEBI), has made it compulsory to open the Demat and Trading Account if you want to buy and sell stocks. A person want to buy/sell stocks in the has to first place his/her order with a broker(OFFLINE TRADING) or can do themselves using online trading systems(ONLINE TRADING).

9 STOCK BROKER A stock broker is person who is licensed to trade in shares. Brokers also have direct access to the share market and can act as your agent in share transactions. For this service they charge a fee. i.e, Brokerage. Eg; ICICI Bank,Geojit,5paisa and Bank of Baroda.

10 WHAT IS TRADING ACCOUNT AND DEMAT ACCOUNT?
Trading account is used to place buy or sell orders in the stock market through broker. Demat account is used as a bank account where shares bought are deposited in it. DEMAT stands for DEMATerialization. It is process in which physical paper shares are converted into paperless (computerized) form. In India there are two Depository organizations, NSDL (National Securities Depository Ltd.) CDSL (Central Depository Services India Ltd.)

11 Stock Market Conditions
There are two ways to describe the general conditions of the stock market: 1)BULL MARKET 2)BEAR MARKET Bull Market(+): A Bull Market indicates the constant upward movement of the stock market. A particular stock that seems to be increasing in value is described to be bullish. Bear Market(-): A bear market indicates the continuous downward movement of the stock market. stock that seems to be decreasing in value is described to be bearish.

12 trading The shares of a company are in general be transferrable
from one shareholder to another . This leads to buying and selling of shares termed as trading. Investors usually buy and sell shares on the exchanges through a stock brokers registered with the exchange.

13 TYPES OF TRADING INTRADAY TRADING
Buying and selling of stocks within the same trading day. Only a little capital investment is required by the trader as transactions can be made in small margins. DELIVERY TRADING Shares bought and can be maintained for a longer duration for higher profit . So it is considered as a delivery trade. Delivery trading requires complete amount for its transactions.

14 ADVANTAGES AND DISADVANTAGES OF INTRADAY TRADING
Only a little capital investment is required by the trader as payments can be made in small margins. It eliminates the overnight risks of the stocks. It provide short selling. DISADVANTAGES There are no long-term capital investments. It have risk in full amount. It requires constant attention of the trader as trades end by the end of the day.

15 ADVANTAGES AND DISADVANTAGES OF DELIVERY TRADING
ADVATAGES There is no time limit to sell stocks. It helps in significantly increasing the profits of the investor as higher returns are provided to the owner through the company’s dividends and bonuses. DISADVANTAGES Complete upfront payments: No trading can take place if the investor cannot pay the entire amount of transaction up front.

16 EXAMBLE FOR TRADING When trader have credit of Rs and stock have Rs. 100.Then, INTRADAY DELIVERY Buy = 500 Shares(Rs.50000) Share price move to rs.110 after trading, then trader profit is rs.5000. ie,500*110 = Now in account = 10000 Share price move to rs.90 after trading, then trader lose is rs.5000. ie,500*90 = 45000 Now in account = 0 Buy = 50 Shares(Rs.5000)

17 PROFIT IN TWO STOCKS MANAPPURAM FINANCE WIPRO

18 WIPRO INVESTMENT GROWTH Rs.100 BECOME Rs.56064000 IN 37 YEARS
DATE RATIO SHARE ACTION 1980 1 BUY 1(Rs100) 1:1 2 BONUS 4 8 16 100/10 160 FV SPLIT 320 640 2;1 1920 10/2 9600 2:1 28800 57600 2:3 96000 192000 TOTAL VALUE IN = 292(PRICE FOR ONE SHARE)*192000=

19 CHART OF WIPRO ONE DAY ONE YEAR

20 TRADE STATION

21 COUNTER OF A SHARE

22 REFERENCE WEBSTES: BOOKS: https://www.moneycontrol.com
BOOKS: How to Make Money in Stocks- William O’Neil Trade Like A Stock Market Wizard- Mark Minervin Winning on Wall Street- Martin Zweig

23 THANK YOU ANY QUERIES ?


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