PROCESS OF INVESTING IN EQUITIES

1. INVESTMENT
(it is not a number game it is a mind game)

2. To Understand
• What is Investment
• How to invest in Equity
Shares
• Benefits of investing in
equity shares
• Risk in equity shares
investing
Learning Objectives

5. Investment is a sacrifice of
current money or other
resources for future benefits

7. Channels of Investing in Equity Shares
Initial Public Offer(IPO)
IPO refers to the process of offering shares of a
private corporation to the public in a new stock
issuance.
Advantages:
1.Perfect Price 2.Safety 3. Quick Short term Profits
Disadvantages:
1.Expenses 2.Lower/No allotment in case of over
subscription 3.Money Locked

8. Secondary Market
The market where previously issued financial
instruments, are bought and sold. It is where
investors sell to other investors. Normally
through stock exchanges.
Advantages:
1.Liquidity 2.Longterm Returns
Disadvantages:
1.Volatile in short-term 2. Brokerage can eat
into profit margins
Channels of Investing in Equity Shares

9. HOW TO INVEST IN EQUITY SHARES
STEP 1: Have a PAN card
STEP 2: Find Stock Broker
STEP 3: Open Demat and Trading account
STEP 4 : Select the stocks you want to buy
STEP 5 :Choose your stock order type
STEP 6 : Invest regularly and Carefully

10. Ask For buyers: The price that sellers are willing to accept
for the stock.
Bid For sellers: The price that buyers are willing to pay for
the stock.
Spread The difference between the highest bid price and the
lowest ask price.
Market order A request to buy or sell a stock ASAP at the best
available price.
Limit order A request to buy or sell a stock only at a specific price
or better.
Stop (or stop-loss) order Once a stock reaches a certain price, the “stop price”
or “stop level,” a market order is executed and the
entire order is filled at the prevailing price.
Stop-limit order When the stop price is reached, the trade turns into a
limit order and is filled up to the point where specified
price limits can be met.

11. Understand
Security Market Indicators
(Bulls and Bears)

12. Understand
1) Book Value of Share
2) Face Value of Share
3) Market Value of Share

13. Go for…………………………………………………………….
1) Fundamental Analysis (EIC)
2) Technical Analysis
Identify ????????????????????????????????????
Under Priced Share and Over Priced Share
UPS =BV>MV
OPS =BV<MV
***Select the UPS for better investment***

14. (BV>MV )
(BV<MV)
(BV=MV)
BUY
SELL
HOLD

15. Benefits of Investing in Equity Shares
1.Dividend
2.Capital Gain
3.Bonus
4.Rights Issue
5.Liquidity

16. RISKS IN EQUITY SHARES INVESTING
1.Market Risk
2.Industry Risk
3.Business Risk
4.Financial Risk
5.Resudual Claim

17. CONTACT
QTSRINIVAS@GMAIL.COM
9290812640