6. BASICSBASICS
What is Saving?
What is Investment?
Why should one invest?
When to start invest?
What care should one take while investing?
What is interest?
Determinants of interest rate?
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13. IPO PROCESSIPO PROCESS
Who is Merchant Banker?
Pricing Of Issue
Face value
Premium and Discount to
Face Value
Book Building Process
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Cut-off Price
Prospectus
Abridged Prospectus
Listing of Securities
Delisting of Securities
14. SECONDARY MARKETSECONDARY MARKET
What is Secondary market?
Diff. between Primary and Secondary market
What is Stock Exchange?
Products in Secondary Market
Shares / Debentures / Bonds
What is Trading member?
What is Clearing Member?
What is Clearing Corporation?
What is Rolling Settlement?
What is Pay-in and Pay-out?
What is Auction?
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15. REDRESSAL MECHANISMREDRESSAL MECHANISM
Investor grievances cell of stock exchange
Arbitration through stock exchange
Investor protection fund
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19. WHAT IS TIME VALUE OF MONEY?WHAT IS TIME VALUE OF MONEY?
Future value of single cash flow
Future value of annuity
Present value of single cash flow
Present value of annuity
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22. LIQUIDITY RATIOLIQUIDITY RATIO
Current Ratio = Current Assets / Current Liability
Acid – Test Ratio =
[ Current Assets – Inventory ] / Current Liability
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23. TURNOVER RATIOSTURNOVER RATIOS
Inventory Turnover Ratio = Cost of good sold /
average inventory
Debtors turnover ratio = Net credit sales /
Average Account Receivable
Average collection period = average debtors /
avg. daily credit sales
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24. Average collection period = 365 days / debtors
turnover
Fixed assets turnover ratio = net sales / net fixed
assets
Total assets turnover ratio = net sales / average
total assets
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27. PROFITABILITY RATIOS:PROFITABILITY RATIOS:
Return on Total Assets = PBIT / Total Assets
Return on Capital Employed = PAT / Total Capital
Employed
Return on Shareholders' Equity = PAT / Net worth
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28. PROFITABILITY RATIOSPROFITABILITY RATIOS
EPS = Profit available to shareholder / no. of equity
share outstanding
Price-earnings ratios = P/E Ratio =Market Price /
EPS
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31. How to select stocks or Commodities for trading.
How to generate profits in intra-day, short-term
and long-term trading by using Technical Analysis.
When to buy and sell stocks or commodities.
Trend Identification
Trend Strength
Over Bought / Over Sold area
How to minimise the risk.
BENEFITS OF TECHNICALBENEFITS OF TECHNICAL
ANALYSISANALYSIS
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33. WHAT IS THE PURPOSE OF DRAWING TRENDWHAT IS THE PURPOSE OF DRAWING TREND
LINES?LINES?
The purpose of drawing trend lines is to identify
where possible reversals will take place. They
can also signal that a change in trend may occur.
TypesTypes ofof trendtrend::
• Up Trend
• Down Trend
• Sideways Trend
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45. Readings below 20 considered oversold and readings above 80
considered overbought. These levels can be adjusted to suit
analytical needs.
Default is 14 days or also known as 14 period.
The stochastic oscillates between 0 and 100, with The
Stochastic Oscillator can be used like any other oscillator by
looking for overbought/oversoldoverbought/oversold readings, positivepositive // negativenegative
divergencesdivergences and centerlinecenterline crossoverscrossovers.
STOCHASTIC READINGSTOCHASTIC READING
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46. STOCHASTICSTOCHASTIC
Selling and Buying calls generate in the graph, stochastic signalling buy/sell at the same time on
price reversal candle form at higher and lower levels
STOCHASTIC EXTREME VALUESSTOCHASTIC EXTREME VALUES
47. The procedure for calculating the MACD lines is as follows:
StepStep 11.. Calculate a 12 period exponential moving average of the
close price.
StepStep 22.. Calculate a 26 period exponential moving average of the
close price.
StepStep 33.. Subtract the 12 period moving averages from the 26
period moving averages. This is the fastfast MACDMACD lineline..
StepStep 44.. Calculate a 9 period exponential moving average of the
fast MACD line calculated above. This is the slowslow or signalsignal
MACDMACD lineline..
MACD CALCULATION
53. Retracement:
To calculate the Fibonacci Retracement levels, a significant low
to a significant high should be found. From there, prices should
retrace the initial difference (low to high or high to low) by a ratio
of the Fibonacci sequence, generally the 2323..66%%,, 3838..22%%,, 5050%%,,
6161..88%%,, oror thethe 7676..44%% retracement.
Retracement is based on the numbers identified in Fibonacci
sequence to define area of supportsupport andand resistanceresistance. Traders
use the Fibonacci retracement levels as potential support and
resistance areas. Since so many traders watch these same
levels and place buybuy andand sellsell ordersorders onon themthem toto enterenter tradestrades
oror placeplace stopsstops, the support and resistance levels tend to
become a self-fulfilling prophecy.
FIBONACCI RETRACEMENT
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54. EXAMPLE IN THE UPTRENDEXAMPLE IN THE UPTREND
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55. EXAMPLE IN THE DOWNTRENDEXAMPLE IN THE DOWNTREND
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