What is Demat Account?

it is the account that holds all your shares in electronic or dematerialized form.

Share and securities are held electronically in dematerlized account instead of investor keeping physical possession

of certificates. Every shareholder will have a Dematerialized account for the purpose of
transacting shares
Advantage
Quick Transfer.
loss on account of fire, theft or mutilation
Low transaction cost.
No need of stamp duties.
In 1996, trading began on NSE for shares held in Demat account form

Benefit to the company

Low Issue cost because there is no need to print the securities.
Benefit to the investor
Reduces risks involved in holding physical certificates, e.g., loss, theft, mutilation, forgery, etc.

Depository Participant (DP)

A depository (in simple terms) is an institution holding a pool of pre-verified shares held in electronic
mode. A DP is typically a financial organization like a bank, broker, and financial institution.
Central Depository

There are two depositories in India the CDSL and NSDL.

What is Life Insurance?

It is a contract between insurance company and Person to provide coverage to their family

( beneficiary ) if anything happen to insured person. In return to this insured person provide premium to the insurance

company.

What is Beta?

Beta represent the risk owing to general market movement.

In stock market : Beta represent movement of stock price in relation to market or index. Beta of stock can be less

than 1, more than 1 , equal to 1 and negative beta.

More than 1: like 1.2% in this case if market move my 10% the stock price will be 12.
Define Earning per share?
EPS means the portion of earning allocated to outstanding shareholders.
Calculated as:

Define share?

Total capital of company is divided into small unit called share. And each share means ownership of
shareholder on the company which company use to raise the capital from the market.

Define Retro marketing?

Retro marketing means producing goods or services that was hit in past. and company use the name and
fame to sale it again. Example: Vespa scooty in India who come upwith 60s models.

How stock market works?

When you buy a stock you're buying a piece of the company. When a company needs to raise money,
they issue shares. This is done through an initial public offering (IPO), where the price of shares are set
based how much the company is estimated to be worth, and how many shares are being issued. The
company gets to keep the money raised to grow its business, while the shares (also called stocks)
continue to trade on an exchange, such as the New York Stock Exchange(NYSE).

Traders and investors continue to buy and sell the stock of the company on the exchange, although the
company itself no longer receives any money from this type of trading. The company only receives money
from the IPO.

Why Buy Shares?

Traders and investors continue to trade a company's stock after the IPO because the perceived value of
company changes over time. Investors can make or lose money depending on whether their perceptions
are in agreement with "the market." The market is the vast array of investors and traders who buy and sell
the stock, pushing the price up or down.
Trying to predict which stock will rise or fall, and when, is very difficult. Over time stocks as a whole tend
to rise, which is why many investors choose to buy a basket of stocks and hold them for the long-term,
attempting to take advantage of the long-term bias and not concern themselves with the moment to
moment fluctuations in stock prices. This is called diversification. The ultimate goal of buying shares is to
make money by buying stocks in which you believe the outlook for the company is good and its perceived
value (in the form of the share price) will rise.

Mature and established companies may also pay a dividend to shareholders. A dividend is a cut of the
company's profit, which they send to you as long as you remain a shareholder and the company
continues to pay the dividend. Aside from the dividend, the share price will continue to fluctuate, so the
losses the gains associate with the share price are independent of the dividend. Dividends can be large
or small (or nonexistent with many stocks); investors seeking regular income from their stock market
investments tend to favoring buying high dividend paying stocks.

When you buy shares of a company you own a piece of that company, and therefore have a vote in how it
is run. While there are different classes of shares (a company can issue shares more than once), typically
owning shares gives you voting rights equal to the amount of shares you own. Shareholders, as a whole
based on their individual votes, select a board of directions and can vote on major decisions the company
is making.

Why Sell Shares?

For every stock transaction there must be a buyer and a seller. When you buy 100 shares of stock (called
a "lot") someone else must sell it to you. Either buyers or sellers can be more aggressive than the other,
pushing the price up or down.

When the price of a stock goes down, sellers are more aggressive because they are willing to sell at a
lower and lower price. The buyers are also timid and only willing to buy at lower at lower prices. The price
will continue to fall until the price reaches a point where buyers step in and become more aggressive, and
are willing to buy at higher prices, pushing the price back up.

Investors don't all have the same agenda, which leads traders to sell stocks at different times. Someone
may have reaped a nice a profit, and so they sell to lock in that profit and extract the cash. Another trader
may have bought at a higher price, is now in a losing position, and chooses to sell because they don't
want the loss to get bigger. Investors and traders may also sell because they believe the stock is going to
go down, based on their research.

Volume

How many shares change hands in a day is called volume. Many stocks on major exchanges such as
NYSE or NASDAQ have millions of shares issued. That means potentially thousands of investors in a
stock may decide to buy or sell on any particular day. A stock that has lots of daily volume is attractive to
investors because the volume means they can easily buy or sell their shares whenever they please.

When volume is inadequate, or no one is actively trading a stock, it's still usually possible to dispose of a
small of amount of shares because the exchanges mandate certain traders (firms) to provide volume.
These traders are commonly referred to as Market Makers, and act as buyers and sellers of last resort
when there are no buyers or sellers. They don't have to stop a stock from rising or falling though, which is
why most traders and investors still choose to trade stocks with lots of volume, and thus not rely on these
"market makers" which are now mostly electronic and automated. There are still people on the floor of the
NYSE. Those men and women in the blue jackets trade stocks for their firms, and also help facilitate
orders from the public (see above).

The Bottom Line

Stock are issued by companies to raise cash, and the stock then continues to trade on a exchange.
Overall stocks have risen over the long-term which makes owning shares attractive. There are also
additional perks such as dividends (income), profit potential and voting rights. Share prices also fall
though, which is why investors typically choose to invest in a wide array of stocks, only risking a small
percentage of their capital on each one. Shares can be bought or sold at any time, assuming there is
enough volume available to complete the transaction, which means investors can cut losses or take
profits whenever they wish

What is mutual fund?

Mutual funds are professionally managed fund. Here investment of various investors is pooled together
and invested in stock and stocks under watch of fund manager. It is better than equity because
 Well diversified.
Under the watch of professional
Save time
Less risky

Buying shares directly from the market is one way of investing. But this requires spending time to find
out the performance of the company whose share is being purchased, understanding the future business
prospects of the company, finding out the track record of the promoters and the dividend, bonus issue
history of the company etc. An informed investor needs to do research before investing. However, many
investors find it cumbersome and time consuming to pore over so much of information, get access to so
much of details before investing in the shares. Investors therefore prefer the mutual fund route.

MUTUAL FUNDS: STRUCTURE IN INDIA?

Mutual Funds in India follow a 3-tier structure. There is a Sponsor (the First tier), who thinks of
starting a mutual fund. The Sponsor approaches the Securities & Exchange Board of India (SEBI), which
is the market regulator and also the regulator for mutual funds.
Not everyone can start a mutual fund. SEBI checks whether the person is of integrity, whether he
has enough experience in the financial sector, his networth etc. Once SEBI is convinced, the sponsor
creates a Public Trust (the Second tier) as per the Indian Trusts Act, 1882. Trusts have no legal identity
in India and cannot enter into contracts, hence the Trustees are the people authorized to act on behalf of
the Trust. Contracts are entered into in the name of the Trustees. Once the Trust is created, it is
registered with SEBI after which this trust is known as the mutual fund.

Asset Management Company (the Third tier) Trustees appoint the Asset Management Company
(AMC), to manage investors money. The AMC in return charges a fee for the services provided and this
fee is borne by the investors as it is deducted from the money collected from them.

How will you sell pen for a person who is not interested in buying it?

Im sure youll agree with me that a pen is vital to your day-to-day work and its
therefore important to make sure youve got just the right one? Allow me to introduce BIC
pens. This pen is solidly constructed so as to be durable for everyday use even if it rolls
off your desk onto the floor. It has a plentiful ink reserve so theres less chance of the pen
running dry at a critical moment. It fits comfortably into the hand and even has a clip so
you can safely attach it to your jacket pocket when youre on the move. I can offer you this
pen at the very reasonable price of 20 pence. However, if you were to take three Im sure
your colleagues would also be interested then I could offer you a 20% discount making a
total of just 48 pence. How many would you like?

Why do you choose sale as carrier?

 CNX nifty= CRISIL NSE Index.

FOLLOW ON PUBLIC OFFER - FPO'

An issuing of shares to investors by a public company that is already listed on an exchange. An FPO is essentially a

stock issue of supplementary shares made by a company that is already publicly listed and has gone through the IPO

process.

What is primary and secondary market?

Primary market is a market where share are issued for first time. Ex IPO

Secondary market means the place where already issued shared is resale.

The secondary market can be further broken down into two specialized categories: auction market and dealer market.

In the auction market, all individuals and institutions that want to trade securities congregate in one area and

announce the prices at which they are willing to buy and sell. These are referred to as bid and ask prices. The idea is

that an efficient market should prevail by bringing together all parties and having them publicly declare their prices.

Thus, theoretically, the best price of a good need not be sought out because the convergence of buyers and sellers

will cause mutually-agreeable prices to emerge. The best example of an auction market is the New York Stock

Exchange (NYSE).

In contrast, a dealer market does not require parties to converge in a central location. Rather, participants in the

market are joined through electronic networks (from low-tech telephones or fax machines to complicated order-

matching systems). The dealers hold an inventory of the security in which they "make a market". The dealers then

stand ready to buy or sell with market participants. These dealers earn profits through the spread between the prices

at which they buy and sell securities. An example of a dealer market is the Nasdaq, in which the dealers, who are

known as market makers, provide firm bid and ask prices at which they are willing to buy and sell a security. The theory

is that competition between dealers will provide the best possible price for investors.

What is capital market?

It is a market where buying and selling of financial instrument takes place. Such as equity and debt.
It is of two types:
Primary and secondary.
Capital market helps in channeling the saving of investor to entrepreneur.
 A new company will go in for IPO or debt?
IPO because a new company will be not able to pay fixed rate of interest.

How will you convince your client to trade?

As we know everybody does trade to make profit. However risk of loss put them in fix (dilemma) to invest or not to

invest. So I will try to make her assure that he/ she is giving money in safe hand .here safe hand means to an

experience person who have is very much personalized with market behavior and in addition to this I will try to show

the glimpse of high uncertain profit .

How will you convince your client to buy insurance?

Insurance is promise of reimbursement in the case of loss.