The article is about to guide novice traders in Share Market Trading, as they don’t have enough knowledge and seeking for the content that guides them “how stock trading works”. So here ProfitAim tried to mention all the essentials required for share market trading. We hope it will be beneficial for all readers.

1. This presentation is about to guide novice traders in
share market trading, as they don’t have enough
knowledge and seeking for the content that guides
them “how stock trading works”. So here I mention
all the essentials required for share market trading.
I hope it will be beneficial for all readers.

2. • It’s a means to own a company.
• The definition of ‘Securities’ as per the Securities Contracts
Regulation Act (SCRA), 1956, includes instruments such as
shares, bonds, stocks or other marketable securities of
similar nature in or of any incorporate company or body
corporate, government securities, derivatives of securities,
units of collective investment scheme, interest and rights in
securities, security receipt or any other instruments so
declared by the Central Government.

3. Shares Market trading refer to buying and selling of
company shares – or any derivative products based on
company stock – with the motive of profit earning.

4. • We need to have DP(DEPOSITORY
PARTICIPANT) account.
• We need to have a Trading account
• And of course money

5. • Companies get themselves listed on popular stock
exchanges like NSE, BSE
• Interested traders using terminal provided by their
brokers trade on those shares.

6. • Investor- Participates through website of brokerage
using internet and computer.
• Brokers- They contact each other through trading
terminals and they also find who is interested to buy
or sell shares.
• Stock exchange- It facilitates transactions through
its servers. Most dominant stock exchange in India
are NSE and BSE.

7. • Registrar of Company-It is a government body that
maintains records of all shareholders and updates
database changes whenever ownership changes.
• Depositories- It includes depository participants which
stores shares in electronic format.
• SEBI (Securities Exchange Board of India)- SEBI is
a government body which regulates financial markets
and looks into Investor complaints against companies.

8. Intraday Trading
Delivery Based Trading

9. Intraday Trading
Intraday trading includes
buying and selling of stocks
within the same trading day.
The stocks purchased in this
kind of trading, are not
purchased with an intention
to invest, but for the purpose
of earning profits by
analyzing the movement of
stock indices.
Delivery Based Trading
• Delivery based trading means buying shares and
holding them for certain period of time is called
delivery based trading.
• In this method you have to place your buying
request through your broker and pay for the
current price of the stock. Once your request is
executed the stocks that you have bought are
deposited to your DP account. In this process
you have to pay the full amount of the stock
price. Once the stocks are deposited to your
account you can then sell the stocks or hold
them for as long as you want.