An Introduction to Stock market Investment Presented By Sanjay Singh Roll No. – 95 Batch – Xlll B

Table of Contents Basic Stock Information What is Investing? Understanding Risk Understanding Stock Splits Understanding IPOs Do and Don’t Sensex

Basic Stock Information

What is Investing?

Understanding Risk

Understanding Stock Splits

Understanding IPOs

Do and Don’t

Sensex

About Stock Common Stock - Its held by the public Preferred Stock - Companies that issue preferred stocks first call on dividends over common stock. Liquidity – trade frequently

Common Stock

- Its held by the public

Preferred Stock

- Companies that issue preferred stocks first call on dividends over common stock.

Liquidity

– trade frequently

What is Investing? Ownership – when you buy stock, you are buying a piece of a company. Upside Potential – participate in the growth of the company

Ownership

– when you buy stock, you are buying a piece of a company.

Upside Potential

– participate in the growth of the company

Understanding Risk!! Carry Risk – the higher the risk, the higher the potential return, and the less likely it will the higher return. Why I Lose Money? – you will give up most of the opportunity to earn a return in exchange.

Carry Risk

– the higher the risk, the higher the potential return, and the less likely it will the higher return.

Why I Lose Money?

– you will give up most of the opportunity to earn a return in exchange.

Understanding Stock Split !! Why Split? Is It Good For Investor?

Why Split?

Is It Good For Investor?

Understanding IPOs !! Why Companies use IPOs to Go Public Role of SEC(Securities and Exchange Commission). Making Money

Why Companies use IPOs to Go Public

Role of SEC(Securities and Exchange Commission).

Making Money

What you MUST do…. Get rid of the junk. Diversify. Believe in your Investment. Stick to your strategy.

Get rid of the junk.

Diversify.

Believe in your Investment.

Stick to your strategy.

What you must NOT do…. Don’t Panic Don’t make huge Investments. Don’t chase performance Don’t ignore expenses

Don’t Panic

Don’t make huge Investments.

Don’t chase performance

Don’t ignore expenses

Sensex !! Index Value: 14,483.83 Prev. Close : 14,899.10 Change : - 415.27 52wk Range :12,515.00 – 21,206.80 Trade Time : 5 Sep. 2008

Thanks……..