This book is perfect for the beginners who want to know about How the Stock market works .It talks about fundamental and technical analysis . The Power Point Presentation gives an overview of the same .

1. ‘Monogamy is not a virtue in the stock market. Flirt
with many and marry a few is the mantra here!’

2. Book Review:
Flirting With Stocks
Stock Market Investing for Beginners
-ANIL LAMBA

3. • Broadly the book is divided into 3 parts
I
• STOCK MARKET BASICS
II
• WHAT TO BUY
III
• WHEN TO BUY

4. • PART- I
❖ In the stock market you will encounter two types of players :Investors and
Speculators
❖ Speculators may possess shares more than their ability to pay .
❖ Types of transactions in stock market -
➢ Limit Order
➢ Market Order
➢ Stop Loss Order
❖ Index-A statistical aggregate that measure change ,taking certain number of
representative stocks and indicating the price weighted movements of those
stocks with reference to a base year.

5. • PART-I
❖ IMPORTANT INDICES
➢ The Dow
➢ Standard & Poor’s 500 index
➢ The Nasdaq Composite Index
➢ Popular indices in India –NIFTY AND SENSEX
❖ Derivative markets ,Mutual funds and Insider trading understanding.

6. • PART- II
❖This part talks about understanding the two most important financial
statements .
❖Elaborately talking about the headings of balance sheet dividing the liabilities
under the heads Long term sources(LTS) and Short term sources(STS) and
Assets into Long term uses(LTU) and Short term uses(STU)
❖Broadly three types of statements exists –
LTS=LTU
STS=STU
LTS>LTU
STS<STU
LTS<LTU
STS>STU

7. ❖An ideal position is case 2.
❖When an organisation is forced to sell its long term assets in order to meet its
short term liabilities ,it’s the beginning of end of that organisation.
❖Healthy companies must maintain current ratio 2:1 and Liquid Ratio at minimum
1:1
❖The structure of capital employed in the business affects the EPS .
❖When one chooses investments on grounds of safety rather than returns ,safety
is never guaranteed ,but mediocrity of return is.
❖Leverage analysis and Ratio analysis understanding in detail.
• PART- II

8. • PART- II
❖Leverage analysis is done to gauge how risky an organization is .
❖Ratio analysis is crucial when understanding a company’s performance and
making comparisons between the companies within a peer group.
❖How to choose a fundamentally strong company
➢Industry analysis
➢Company analysis
➢For instance who shortlist 5 companies look into their gross profits ,net
profit, EPS, the price earnings ratio and some more information.
“Stay in love with a security until the security gets overvalue ,then let somebody else fall in love with
it.”

9. • PART- III
This part talks about the timings of Entry and Exit:
❖ In a rising market there will be intermittent downswings .In a falling market
there will be periodic upswings .What you need to learn is to distinguish the
daily movements from the trend.
❖ Never buy in falling market ;a good strategy would be to buy at the second jump
up .Never sell in a rising market ;sell at the second fall.

10. ❖ Some investing mantras that one should always remember is
➢ “It's far better to buy a wonderful company at fair price than a fair company at a
wonderful price .”
➢ “The first thing you do is decide the loss you are willing to suffer and put stop
loss limit.”
➢ “Keep profits open ended and put a stop loss.People often tend to reverse.”
• PART- III

11. “Certainty belongs to Mathematics, not to Markets”
Bill Miller

12. Thank You