Topics

What is a share/stock/equity?
What is share market?
Who is a shareholder?
Importance and role of stock market
Disadvantages of stock market
Types of stock market
Market conditions
Why does company issue shares to the public?
Leveraged strategies
Stock Market Index
NSE
BSE
Shares represent a fraction of ownership in a business.
The common feature of all these is equity
participation. Different classes of shares have different
voting rights.
Ownership of shares is documented by a legal
document that specifies the amount of shares owned
by the shareholder, and other specifics of the
shares, such as the par value or the class of the shares
(if any).
These days these stock certificates have been
dematerialized.(No physical document!)
A stock market or equity market is a market for the
trading of company stock (shares) and derivatives at
an agreed price.
The size of the world stock market was estimated at
about $36.6 trillion USD at the beginning of October
2008.
A shareholder (or stockholder) is an individual or
company (including a corporation) that legally owns
one or more shares of a company.
Shareholders are granted privileges depending on the
class of stock, including the right to vote on matters
such as elections to the board of directors, the right to
share in distributions of the company's income, the
right to purchase new shares issued by the
company, and the right to a company's assets during a
liquidation of the company.
Shareholders vary from individual stock investors to
large hedge fund traders.
Raising capital for businesses
Government capital-raising for development
projects
Mobilizing savings for investment
Facilitating company growth through acquisitions
Creating investment opportunities for small
investors
Barometer of the economy
 Disadvantages of Stock Market
Risk - Since stocks are so volatile, they can be much more risky
investments as opposed to something like bonds. With great potential
for reward comes risk. Thankfully techniques have been developed to
manage your risk in the stock market.
Paper Asset - Since stocks are paper assets, they are backed by the
companies they represent, but you have no physical asset in your
possession. Real estate, for example, you get the house in your
control. It’s all about what you’d prefer.
With all this said to make sure to learn before investing. Investing is
only hard if you make it hard. Manage your risk wisely. Check out this
free trading guide to get started trading. It is important to learn as much
as you can before investing so you do not end up losing money.
Acompany may want additional capital to invest in
new projects.
The promoters may simply wish to reduce their
holding, freeing up capital for their own private use.
Once a company is listed, it will be able to issue further
shares via a rights issue, thereby again providing itself
with capital for expansion without incurring any
debt.
Financing a company through the sale of stock in a
company is known as equity financing.
Margin Buying
Buying stock on margin means buying stock with money
borrowed against the stocks in the same account. These
stocks, or collateral, guarantee that the buyer can repay the
loan; otherwise, the stockbroker has the right to sell the
stock to repay the borrowed money. The broker usually
charges 8-10% interest on margin borrowing.
Short selling
In short selling, the trader borrows stock (usually from his
brokerage) then sells it on the market, hoping for the price
to fall. The trader eventually buys back the stock, making
money if the price fell in the meantime and losing money if
it rose.
The movements of the prices in a market or section of
a market are captured in price indices called stock
market indices. Such indices are usually market
capitalization weighted, with the weights reflecting
the contribution of the stock to the index. Examples of
index include Sensex, Nifty, DJIA, S&P500, Nikkei etc.
The constituents of the index are reviewed frequently
to include/exclude stocks in order to reflect the
changing business environment.
Investment

• Fixed Deposit 7%
• Debt Fund 6%
• Real State 5%
• Gold 6%
• Saving Account 4%
• Mutual Fund 12%
• Share Market 18%
Investment
INVESTMENT
Investment
Share Market
Stock Market
Share Market
Golden Statement
Harshad Mehta Scam
Harshad Mehta Scam
Price Earning Ratio
Price Earning Ratio
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Price Earning Ratio
Share Market
Share market