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Investor
The dumbest reason in the world to buy a stock is because it's going up
Financial system
y Financial system is the system that allows the transfer of
modern economy.
y They channel household savings to the corporate sector and
allocate investment funds among firms; they enable households and firms to share risks.
Capital Market
A capital market is a market for securities (Debt or equity), where business enterprises and governments can raise long-term funds.
securities are sold for the first time. In a primary issue, the securities are issued by the company directly to investors.
y In secondary market investors purchase
securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the BSE and NSE are secondary markets.
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y How many stock exchanges are there in India? y By what name is the building phiroze jeejeebhoy
Clue.
Intermediaries
y Stock exchanges y Brokers y Depositories, depository participants y Merchant bankers y Bankers to the issue y Registrars to the issue y Underwriters y Portfolio managers y Debentures trustees y Credit rating agencies
depositories.
y Investors open their account with depositories via depository
for dematerialisation with both the depositories viz CDSL & NSDL.
electronic form .
y Trading Account : An account which is used to place orders for
account and shares are taken away from your Demat Account and sold in the stock market.
involving dematerialised securities (just like the transactions through a bank teller are costlier than ATM transactions).
y Quick Transfer- Securities can be transferred at an instruction immediately. y Elimination of Risks - Risks like forgery, thefts, bad delivery, delays in transfer etc,
intimated to all companies in which investor holds any securities, without having to inform each of them separately.
the aim of protecting the interests of investors, promoting and regulating the securities market.
y Screen Based Trading - Open out-cry system replaced by on-line
progressively from T+5 to T+3 days. From April 2003 onwards, T+2 days settlement cycle is being followed.
managing risks better through hedging, speculation and arbitrage, the market presently offers index futures, index options, single stock futures and single stock options.
y Clearing Corporation - National Securities Clearing Corporation
clients, direct access to the Exchange trading system through the brokers infrastructure without manual intervention by the broker
y Launch of Securities Lending & Borrowing Scheme - Allows
: $14.2 trillion : $3.32 trillion : $4.68 trillion : $3.26 trillion : $2.35 trillion : $2.25 trillion : $1.912 trillion : $1.18 trillion : $1.07 trillion :$0.98 trillion
responsible for a significant amount of the worlds economic condition whether it be healthy, ailing, or trending sideways.
In general, stock market growth is a leading indicator that the
will happen in the economy of that country around six months later.
Todays rate is Rs. 450 Your portfolio would have been Rs. 432 crore
your worth except you tell him/her. In other investments, people can easily look at the assets of the business or your property (real estate) and come up with approximate worth of it.
y The rate of growth is far beyond the bank interest rate. y
Dividend -This is cash reward given to share holders as part of the profit made by the company at the end of each financial year.
Conclusion
Exposure to stocks is only a meagre 1.25 per cent as against 35-
40 per cent in developed economies. This is one of the lowest in the world.
while India has over 75 crore mobile phone connections, the
with about 36 per cent. About 64 per cent of the savings in India goes to banks in fixed deposits and 6 per cent to the capital markets.
bright career ahead, has a higher risk-taking capacity, and so can afford to invest larger amounts in assets that carry higher risk but much better returns.
Compared with the returns from various assets like bank
deposits and company deposits, over long terms, equities have consistently delivered higher returns.
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and services of Aditya Birla Money Limited and Aditya Birla Money Mart Limited
y Aditya Birla Money Limited is a broking and distribution player,
offering Equity and Derivative trading through NSE and BSE and Currency derivative on MCX-SX.
y
We are registered as Depository Participant with both NSDL and CDSL and also provides commodity trading on MCX and NCDEX through its subsidiary company.
distribution player, offering third party products like company deposits, mutual funds, insurance, structured products, alternate investments, property services and has a premier wealth management service arm to cater to HNI customers.
y These offerings are delivered through a strong pan India distribution
network of about 1000 own and franchisee branches, a robust online and offline model with a strong technology backbone to a large customer base, in excess of 4 lakhs.
y For more information please visit www.adityabirlamoney.com