For beginners, the stock market can seem incredibly lucrative, risky and confusing. Following a few stock market basics can protect you from common pitfalls and keep you excited about learning to invest.
3. Share market basics
Terminology
How to Trade
Practice on virtual terminal
Doubt clearing
4. Share market : Buying and selling of
shares is done
Share market basics
5. NSE(National Stock Exchange)
It is the largest stock exchange in India in terms of
daily turnover and number of trades, for both
equities and derivative trading NSE.(9:00 to
3:30)NIFTY
BSE( Bombay Stock Exchange)
It is the oldest stock exchange in Asia and has the
largest number of listed stocks. It is located at Dalal
Street, Mumbai.(9:00 to 3:30)SENSEX
MCX(Multi Commodity Exchange of India
Ltd.)
Silver ,Gold, Copper & Natural Gas and Crude Oil
(10:00 to 11:30) MCX
6. Why to invest in
stock market?
•You want to
maximise your
returns.
•You want to beat
inflation.
7. Why to invest in
stock market?
•Keep pace with
inflation.
•Reach your
financial goals with
the right mix of
investments.
8. Why to invest in
stock market?
•Reduce investing
risk with a solid
asset allocation
strategy.
•Reduce risk with a
well-planned
strategy for buying
and selling stocks.
9. Why to invest in
stock market?
•Use dollar-cost
averaging to stay in
the market when
stock valuations are
high.
•High-frequency
traders aren't
hurting returns for
regular investors.
11. A broker is a party that
mediates between a buyer and
a seller.
A stock broker or
stockbroker is a regulated
professional broker who buys
and sells shares and other
securities through agency
firms on behalf of investors.
12.
13. The term Demat, in India, refers to a
dematerialized account.
In a Demat account shares and securities are
held in electronic form instead of taking actual
possession of certificates.
14. Mirror of the market
How the top companies are performing
Calculated by assigning weights to specific
securities.
Examples:
Nifty 50 , Sensex , Bank Nifty, etc
21. When you purchase stocks with the purpose to
hold them for more than a day is termed as
Delivery trading.
When you buy or sell stocks for intraday with
an obligation to square off your position in the
market on the same day is known as Day
trading.
22. Last trading price
Open price
Close price
Day high
Day low
52 week high/low
23. Order: Bids you are putting into terminal.
Trade: Bids which are executed.
24. Market Price
Limit Price
Margin
Short Selling
Short Covering
Stop Loss
25. Fundamental basis:
Analysing company accounts, business profitability
by using ratios like EPS, PE, Book value to PE etc.
Technical basis:
Analyzing the historical price movements on the
charts for identifying patterns in share prices.