Basic understanding of the stock Market

1. SIRC OF KAKINADA
INSTITUTE OF CHARTERED
ACCOUNTANTS OF INDIA

2. TOPIC:

3. LEARNING OBJECTIVES
What is a stock market?
Types of stock market
What are the market conditions?
What is SENSEX & NIFTY 50?
HOW TO CALCULATE NIFTY AND SENSEX?
WHERE & HOW to trade??????????

4. What is a stock market?
A Stock market is an exchange
Where stock brokers and traders
Can buy and sell shares of
Stocks, bonds and other
Securities in a listed
stock exchange(BSE&NSE).

5. TYPES OF STOCK MARKET?
CONTD...

6. `

8. BULLS
A financial market
condition in which prices of
securities or group of
securities are rising or
expected to rise
BULL markets are
characterised by optimism,
investor confidence and
expectations that strong
results will continue.

9. BEARS
IT is a market
condition in which the
prices of securities are
falling.
As investors
anticipate losses in a
bear market and
selling continues,
pessimism only grows.

10. SENSEX
 Sensex, otherwise known as the S&P BSE Sensex index,
is the benchmark index of the Bombay Stock Exchange
(BSE) in India. Sensex is composed of 30 of the largest
and most actively-traded stocks on the BSE.
 Providing an accurate gauge of India's economy. Initially
compiled in 1986, the Sensex is the oldest stock index in
India.

11. NIFTY 50
 The NIFTY 50 index is National Stock Exchange of
India's benchmark broad based stock market index for
the Indian equity market. Full form of NIFTY is National
Stock Exchange Fifty . It represents the weighted average
of 50 Indian company stocks.

12. Calculation of SENSEX and
NIFTY
Free-float market capitalization is defined as that
proportion of total shares issued by the company
that are readily available for trading in the market.
MARKET
CAPITALIZATION

13. WHERE TO TRADE..????

14. CONCLUSION
One of the things you need to plan when you are
getting ready to trade options is exactly how you are
going to make your trades i.e. where will you buy,
sell, and write options.