Description
Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors.
A EASY WAY TO EARN THE MONEY @ A EASY WAY TO LOSE THE MONEY
STOCK MARKET
How Companies Raise The Capital
? By following mean’s
? Debentures ? Equity ? Loan’s
Why Companies Issue Stock?
When a company would like to grow, it issues stocks to raise funds and pay for ongoing business activities ? It is popular because:
? The company does not have to repay the money ? Paying dividends is optional
? Dividends are distributions of earnings paid to stockholders
What is a Stock?
? Stock is a share in the ownership of a company.
It represents a claim on the company's assets and earnings
? Whether you say shares, equity or stock, it all
means the same thing.
Types of share
Four types of share’s
? Ordinary ? Preference ? Cumulative preference ? Redeemable
What is a stock market?
? Place where business of buying and selling stock takes place ? The stock market is not a specific place, though some people use the term "Dalaal Street”
Market Segments
? Primary market
-Channel for creation of new securities
? Secondary market
-The new securities issued in the primary market are traded the secondary market
Stock exchange world wide
? New York Stock Exchange - United States
? NASDAQ (National Association of Security Dealers Automated
Quotations) - United States
? Shanghai Stock Exchange - China ? London Stock Exchange
- UK
Stock exchange in India
? The Bombay Stock Exchange (BSE)
? National Stock Exchange of India Ltd (NSE)
Bombay Stock Exchange (BSE)
?
Following is the timeline on the rise and rise of the Sensex through Indian stock market history.
? 1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.
? 1860-1865 Cotton price bubble as a result of the American Civil War
? 1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal ? 1978-79 Base year of Sensex, defined to be 100.
National Stock Exchange (NIFTY)
? November 1992 as a
tax-paying company ? In April 1993, it was recognized as a stock exchange.
INDEX
? SENSEX
? Sensex is an index, an index is basically an indicator. ? It gives you a general idea about whether most of the
stocks have gone up or most of the stocks have gone down. The sensex is an indicator of all the prices of the major companies of the BSE(Bombay stock exchange)
? It includes 30 companies
NIFTY(Nifty Fifty)
? Nifty is an indicator of all the major companies of NSE.
? The Nifty index is a composite of the top 50 stocks listed
on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand what happens in the stock market & by extension, the economy.
Market Timings
Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the exchange in advance) The market timings of the equities segment are:
Normal market open : 09:55 hours Normal market close : 15:30 hours The closing session is held between 15.50 hours and 16.00 hours in NSE and 15.40 hours and 16.00 hours in BSE
Trading on BSE and NSE
? BSE and NSE provide trading facility on
two segments ,which are - Cash Segment and - Derivative Segment ? NSE also has another segment called WDM, Wholesale Debt Market.
NEAT- Cash
NEAT-F&O
Circuit Breakers
? An index based market-wide circuit breaker system applies at three
stages of the index movement either way at 10%, 15% and 20%.
? The breakers are triggered by movement of either S&P CNX Nifty or
Sensex, whichever is breached earlier
As an additional measure of safety, individual scrip-wise price bands has been fixed as below: ? Daily price bands of 2% (either way) on a set of specified securities ? Daily price bands of 5% (either way) on a set of specified securities ? Daily price bands of 10% (either way) on another set of specified securities
Securities and Exchange Board of India (SEBI)
? SEBI is the Regulator
for the Securities Market in India. ? Originally set up by the Government of India in 1988, it acquired statutory form in 1992.
Functions and Responsibilities (SEBI)
? SEBI has to be responsive to the needs of three groups, which constitute the market:
? the issuers of securities
? the investors
? the market intermediaries.
ISSUES
? The way to invite share capital from the public is through a PUBLIC ISSUE
Types Of Issues
ISSUES
Public
Rights
Preferential
IPO
FPO
Fresh Issues
Offer for sale
How to Start?
? Open Demat A/c.
? Open Trading A/c.
How the Market Work
NSE
Broker Broker
Public
Public
doc_436587873.ppt
Some studies have suggested that institutional investors and corporations trading in their own shares generally receive higher risk-adjusted returns than retail investors.
A EASY WAY TO EARN THE MONEY @ A EASY WAY TO LOSE THE MONEY
STOCK MARKET
How Companies Raise The Capital
? By following mean’s
? Debentures ? Equity ? Loan’s
Why Companies Issue Stock?
When a company would like to grow, it issues stocks to raise funds and pay for ongoing business activities ? It is popular because:
? The company does not have to repay the money ? Paying dividends is optional
? Dividends are distributions of earnings paid to stockholders
What is a Stock?
? Stock is a share in the ownership of a company.
It represents a claim on the company's assets and earnings
? Whether you say shares, equity or stock, it all
means the same thing.
Types of share
Four types of share’s
? Ordinary ? Preference ? Cumulative preference ? Redeemable
What is a stock market?
? Place where business of buying and selling stock takes place ? The stock market is not a specific place, though some people use the term "Dalaal Street”
Market Segments
? Primary market
-Channel for creation of new securities
? Secondary market
-The new securities issued in the primary market are traded the secondary market
Stock exchange world wide
? New York Stock Exchange - United States
? NASDAQ (National Association of Security Dealers Automated
Quotations) - United States
? Shanghai Stock Exchange - China ? London Stock Exchange
- UK
Stock exchange in India
? The Bombay Stock Exchange (BSE)
? National Stock Exchange of India Ltd (NSE)
Bombay Stock Exchange (BSE)
?
Following is the timeline on the rise and rise of the Sensex through Indian stock market history.
? 1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.
? 1860-1865 Cotton price bubble as a result of the American Civil War
? 1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal ? 1978-79 Base year of Sensex, defined to be 100.
National Stock Exchange (NIFTY)
? November 1992 as a
tax-paying company ? In April 1993, it was recognized as a stock exchange.
INDEX
? SENSEX
? Sensex is an index, an index is basically an indicator. ? It gives you a general idea about whether most of the
stocks have gone up or most of the stocks have gone down. The sensex is an indicator of all the prices of the major companies of the BSE(Bombay stock exchange)
? It includes 30 companies
NIFTY(Nifty Fifty)
? Nifty is an indicator of all the major companies of NSE.
? The Nifty index is a composite of the top 50 stocks listed
on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand what happens in the stock market & by extension, the economy.
Market Timings
Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the exchange in advance) The market timings of the equities segment are:
Normal market open : 09:55 hours Normal market close : 15:30 hours The closing session is held between 15.50 hours and 16.00 hours in NSE and 15.40 hours and 16.00 hours in BSE
Trading on BSE and NSE
? BSE and NSE provide trading facility on
two segments ,which are - Cash Segment and - Derivative Segment ? NSE also has another segment called WDM, Wholesale Debt Market.
NEAT- Cash
NEAT-F&O
Circuit Breakers
? An index based market-wide circuit breaker system applies at three
stages of the index movement either way at 10%, 15% and 20%.
? The breakers are triggered by movement of either S&P CNX Nifty or
Sensex, whichever is breached earlier
As an additional measure of safety, individual scrip-wise price bands has been fixed as below: ? Daily price bands of 2% (either way) on a set of specified securities ? Daily price bands of 5% (either way) on a set of specified securities ? Daily price bands of 10% (either way) on another set of specified securities
Securities and Exchange Board of India (SEBI)
? SEBI is the Regulator
for the Securities Market in India. ? Originally set up by the Government of India in 1988, it acquired statutory form in 1992.
Functions and Responsibilities (SEBI)
? SEBI has to be responsive to the needs of three groups, which constitute the market:
? the issuers of securities
? the investors
? the market intermediaries.
ISSUES
? The way to invite share capital from the public is through a PUBLIC ISSUE
Types Of Issues
ISSUES
Public
Rights
Preferential
IPO
FPO
Fresh Issues
Offer for sale
How to Start?
? Open Demat A/c.
? Open Trading A/c.
How the Market Work
NSE
Broker Broker
Public
Public
doc_436587873.ppt