18360477 indian stock market

7/31/2019 18360477 Indian Stock Market

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Indian Stock Market

Market of Hope, Discipline & Greed


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What is Stock ?

Plain and simple, stock is a share in the

ownership of a company. Stock represents aclaim on the company's assets andearnings.

As you acquire more stock, yourownership stake in the company becomes

greater.

Whether you say share, equity, or stock, itall means the same thing.


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Classification of stocks

Stocks are classified as1. 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 boardmembers, who oversee the major decisionsmade by management

2. Preferential Stocks:- Preferred stock representssome degree of ownership in a company butusually doesn't come with the same votingrights.


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What is Stock Market ?

A stock market is a market for thetrading of publicly held company stock and

associated financial instruments (includingstock options, convertibles and stock indexfutures).


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What is Indian Stock Exchange ?

Formal organizations, approved andregulated by the Securities and Exchange

Board of India (SEBI), that are made upof members who use the facilities toexchange certain common stocks.


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INDIAN STOCK EXCHANGES

Two National Level Exchanges are

1. National Stock Exchange (NSE)

2. Bombay Stock Exchange (BSE)

Total 22 Exchanges are there in IndiaNational and Regional level, allexchanges conducts 100% computerizedtrading.


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NSE National Stock Exchange

Established In November 1992.

Around 3500 Companies Are Listed

Around850 Main Brokers And10000 SubBrokers.

Non Corporate : 35 - Corporate : 725

Daily Traded Companies Are Around 100%

Average Daily Turnover Of Rs. 15000 cr.


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BSE Bombay Stock Exchange

Established In 1875 As "The Native ShareAnd Stock Brokers Association".

Oldest Stock Exchange In Asia.

Around 7000 Companies Are Listed.

Around 935 Main Brokers And 5617 SubBrokers.

Non Corporate: 210 - Corporate : 710

Daily Traded Companies Are Around 3500Average Daily Turnover Of Rs. 7500 Cr.


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I N D I C E S

Major Indices

Sensex (BSE),S&P CNX Nifty (NSE ), CNX ITIndex, CNX Nifty Junior, CNX Bank Index

Other Indices

CNX 100, CNX FMCG Index, S&P CNX 500, CNXPSE Index, CNX Midcap, CNX MNC Index, S&PCNX Defty, CNX Service Sector Index, CNXMidcap 200, S&P CNX Industry

Indices, Customized Indices, CNX EnergyIndex, CNX Pharma Index, CNX InfrastructureIndex, CNX PSU BANK Index , CNX Realty Index


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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


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Basic requirement for Investing in

stocks

D-Mat Account:-

Saving Bank Account:-

Permanent Account Number (PAN):- Trading Account with Recognized Stock

Broker:-


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D-Mat Account and its Benefits

A Dmat account is like a Bank Account, with thedifference being that instead of cash, a Dmataccount 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.


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Trading Account

A Trading account is required if an individual

wishes to trade, i.e. buy and sell shares in thestock exchange. A Trading account can also be

opened with most banks and financialinstitutions, after filling up the required formsand providing identity and address proofs.


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Trading Process

Once the Dmat account, Trading account andBank account are in place, an individual is readyto start trading. While it is not necessary to have

the Dmat account, Trading account and Bankaccount with the same organization.


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THREE WAYS TO INVEST IN SHARES

PRIMARY MARKET:-Where Company Directly Allots His Equity

Shares To Investors.

SECONDARY MARKET:-Where Allotted Sharein Public Issue Are Bought And Sold

by Investors With The Help Of Stock Brokers

at Various Stock Exchanges.

Future & Options:- Its a derivative segment

of Underlying securities.


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PRIMARY MARKET

The primary market is where securities are

created (by means of an IPO).

Initial Public Offering (IPO) is the first sale ofstock by a company to the public. A companycan raise money by issuing either debt or equity.If the company has never issued equity to thepublic, it's known as an IPO. This market isknown as primary Market


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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.


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FUTURES & OPTIONS

In finance, a security whose price is dependent

upon or derived from one or more underlyingassets.

The derivative itself is merely a contractbetween two or more parties.

Its value is determined by fluctuations in the

underlying asset. The most common underlyingassets include stocks,bonds, commodities, currencies.


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DIFFERENCE IN EQUITY & DERIVATIVESSEGMENTS IN EQUITY MARKET

A) DELIVERY TRADING OR CASH MARKETB) INTRADY TRADING OR MARGINE MARKET

F&O MARKET IS COMBINES FEATURES OFDELIVERY AND

INTRADAY TRADING

PARAMETERS:-

A) TIME

B) NUMBER OF SHAREC) INVESTMENT

D) BROKERAGE

E) BILATERAL RETURNS


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TRADING TYPESINTRADAY TRADING:-In this type oftrading, you dont have holding of shares,

you just take a position which is must tosquare offsame day before 3:30 oclock.

DELIVERY TRADING :- In this type oftrading, you buy shares and hold them

till you receive the returns on yourinvestment.

Futures & Option trading (F&O):- In this type of

trading, you dont have holding of shares ,you justmake a contract which is must to square off

depending on time frame of contract made

(i.e.1/2/3 month) .


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TYPES OF ORDERS

ON MARKET ORDER

LIMIT ORDER

IMMEDIATE OR CANCEL (IOC) ORDER

STOP LOSS ORDER

TRAILING STOP LOSS ORDER


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FACTORS INFLUENCING CHANGE IN STOCK PRICE

DEMAND & SUPPLY, PROFITS, P.H , P/ERATIO, DIVIDENDS, BONUS SHARES,

ECONOMIC NEWS, POLITICAL NEWS,

COMPANY NEWS.


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SOME COMMON TERMS IN STOCK MARKET

BULL MARKET, BEAR MARKET, BROKERAGE,

MARGINE, OPEN, CLOSE, DAY HIGH, DAY

LOW, PREVIOUS CLOSE, % CHANGE, 52WEEK HIGH LOW, RESISTANCE & SUPPORT, STT,

TOT, OTLVT, STAMP DUTY.


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THANKING YOU ALL

18360477 indian stock market

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