Rs.

6,700,000,000,000

1400 Point loss to the Index

 THE “WH” FAMILY

Q1 What do you mean by investment ????

Q2 Why investment ????
Q3 Where to make investment ????
Q4 How to make investment ????
 Secondary Market

• The secondary market deals in securities previously

issued. It enables those who hold securities to adjust
their holdings in response to charges in their
assessment of risk and return.
• Stock exchanges- means any body or individual
whether incorporated or not, constituted for the
purpose of assisting, regulating or controlling the
business of buying selling and dealing in securities.
 Historical snapshot

• The Natic Stock and Share Brokers

Association- 1875
• Recent past- “Floor trading”
• BOLT – 1995
• 23 STOCK EXCHANGES AT PRESENT
 Economic Significance of Index
Movement

Every stock price moves for two possible

reasons:
 News about the company (e.g. a product launch,
or the closure of the factory)

 News about the country (e.g. nuclear bombs, or

a budget announcement)
BULLS:-Bulls are
bold animals who
might charge right
ahead

BEARS :-Bears
are cautious animals
who don't like to move
too fast
BROAD DIVISION OF THE MARKET

SMALL CAP FUND

(Rs.12-80 BILLION)

MID CAP FUND

(Rs.80-400 BILLION)

LARGE CAP FUNDS

(MORE THAN Rs.400 BILLION)
 INDEX CONSTRUCTION
INDEX = CURRENT MARKET CAPITALISATION X BASE VALUE
BASE MARKET CAPITALISATION

METHODS OF INDEX
CONSTRUCTION
1.STRAIGHTFORWARD APPROACH
2.CLUSTER ANALYSIS
3.MULTIDIMENSIONAL SCALING
 WHAT TO INCLUDE ?

• REGULARLY TRADED SECURITY

• CONSISTENT PROFITABILITY

• GOOD MARKET CAPITALISATION

• REPRESENT ALL SECTORS

Role of a Broker in Secondary
Market

• Who is a broker?

• Who is a sub broker?

Role of a Broker in Secondary
Market

• How to place an order with

the broker or sub broker?

• What are the charges that can be levied

on the investor by a
stock broker/sub broker?
 Settelment of Account

• What is an Account Period Settlement?

• What is a Rolling Settlement?

• What is the pay-in day and pay- out day?

  Activity Day
Trading Rolling Settlement Trading T
Clearing Custodial Confirmation T+1 working days
  Delivery Generation T+1 working days
Settlement Securities and Funds pay in T+2 working days
  Securities and Funds pay out   T+2 working days 
Post Settlement   Valuation Debit T+2 working days
  Auction T+3 working days
  Bad Delivery Reporting T+4 working days
  Auction settlement T+5 working days
  Close out T+5 working days
Rectified bad delivery pay-in
  T+6 working days
and pay-out
 MARGIN TRADING

• What is Margin Trading ??

• What is the Eligibility Criteria ??

• What Securities are included for Margin Trading??

• From where do the funds come for Margin Trading??

 DEMAT ACCOUNT

• What is a Demat Account??

• How to Open a Demat Account??