Presented By: Saurabh Jain Roll No. 11/243 B.E. 3rd SemesterElectronics and Telecommunication Engineering Department Assam Engineering College
STOCK MARKET or EQUITY MARKET is a public entity for the trading of company stock (shares) and derivatives at an agreed price. The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, thus providing a marketplace (virtual or real).
1. What are Markets? : A stock market is a market for the trading of company stock/ shares, and derivatives . Can be classified into- 1.1 Primary markets: Part of the capital markets that deals with the issuance of new securities. 1.2 Secondary markets :Here securities are sold by and transferred from one investor or speculator to another. 2. What are shares? : A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed.
3.What is a stock exchange? : It is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. Its index, or market indicator is known as the Sensex. 4. Who is a broker? : A stockbroker is person who is licensed to trade in shares. Brokers also have direct access to the sharemarket and can act as your agent in share transactions. 5. What is a Demat A/c? : Investors who wish to trade in the market need to have a dematerialized, or demat, account. In India, the government has mandated two entities –National Securities Depository, or NSDL, and Central Depository Services (India), or CDSL – to be the custodian of dematerialized securities.
1. Buying and selling of dematerialised securities : The procedure for selling dematerialized securities is very simple. After you have sold the securities, you would instruct your DP (depository participant) to debit your account with the number of securities sold by you and credit your brokers clearing account. Similarly, For receiving demat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later. 2. How to receive income from shares? : We invest in shares to make money – either through a share’s capital growth, i.e. the amount by which the share price increases in value over time, or through the dividends it pays to its shareholders.
3. How to make investment decisions? : To cope with volatility, it is important to have a disciplined and systematic approach to equity investment. Set your own rules and more importantly, follow them religiously. Indeed, the mantra for successful equity investment is a well thought-out, disciplined investment strategy. 4. How to track your investments? (Portfolio tracker) : The Portfolio Manager tracks and monitors all your investments, cash flow and assets, through live price updates. With the Portfolio Manager, you can not only view your investments at each stage, but can use this record of your holdings to base any future investments decisions.
More over investing in stock market is a kind of investment that one cannot learn or understand only through theoretical knowledge, its simply a game in which one can accelerate only through market based practical knowledge and fair investment strategy. Before one examines a company or start up a new firm, it is important to understand the nature of businesses and the stock market. This is the cornerstone of learning to invest well. At last the stock market can be a great source of confusion for many people. An average person may believe that investing is a form of gambling; they are certain that if you invest, you will more than likely end up losing your money. But at the same time any one with a small investment can make a good profit if he/she have good knowledge of this field.