Trading PPT.pptx

The Basics Of Stock Market
S e s s i o n 1 - P a r t A
BASICS OF
STOCK MARKET
Presented by “HIDDEN BULL”

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Basic of Stock Market – Session 1
D e s i g n e d b y D h a r a m i k
Classified as Business
The Market Is A Place For
Transferring Money From The Impatient
To The Patient
- W a r r e n B u f f e t t
”
“

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What you’re going to learn!
What is Market?
What is stock?
What is stock market?
Begin
Let’s
Why companies issue shares?
Types of Share markets?
Types of securities in stock market?
Major myths about stock market?
Why do most people fail in stock market?
What you should expect from our course?
When can we actually start our
trading?

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What is
Market?
A market is a place where two
parties can gather to facilitate the
exchange of goods and services.
The parties involvedare usually
buyers and sellers.

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What is Stock?
A stock (also known as equity) is a security that
represents the ownershipof a fraction of
a corporation.
This entitles the owner of the stock to a proportion of
the corporation's assets and profits equal to how
much stock they own.
For example, if a company has 1,000shares of stock
outstandingand one person owns 100 shares,that
person would own and have claim to 10% of the
company'sassets and earnings.

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What Is Stock
Market?
The stock market refers to the
collection of markets and exchanges
where regular activities of buying,
selling,and issuance of shares of
publicly-heldcompanies take place.
There can be multiple stock trading
venues in a country or a region which
allow transactions in stocks and other
forms of securities.

Why
Companies
Issue Shares?
Companies issue shares because they need
more money to finance their expansionand to
function efficiently. The investorbuying these
shares get part ownership in the company
and company gets the needed money which it
can use for its operations.
Raisingmoney by issuance of shares are
called equity financing.

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Types Of Share
Markets?
Primary
Share market:
This is the market where companies or businesses
register themselves. Companies enter the primary
share market to raise funds by offering their stocks.
When a company registers itself in the primary share
market and offers to sell its shares for the first time,
it is known as Initial Public Offering (IPO).
Secondary
share market:
The actual trading of a company’sshares
occurs in the secondary share market. After
a company’sshare is listed on a stock
exchange, investorscan engage in trading,
i.e. the sale or purchase, on prices that are
governed by market movements. You can
trade in shares in the secondary share
market only through a broker.

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Types Of Securities
In Stock Market?
Security relates to a financial instrument or
financial asset that can be traded in the open
market, e.g., a stock, bond, options contract, or
shares of a mutual fund, etc.
Equity securities
02
It is an investment in an
organization’s equity stock to
become a shareholder of the
organization.
Derivative securities
03
These are financial
instruments whose value
dependson basic variables
such as Futures and Options
Hybrid security
04 It combines characteristics of
both debt and equity
securities.
Debt securities
01 It represent money that is
borrowed and must be repaid with
terms outlining the amount of the
borrowed funds,interest rate, and
maturity date.

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01 Stock market is all about luck
and gambling
Major
Myths
About
Stock
Market?
02
You can become millionaire by
joining some course
03
Only investing for long term
can make money
04
It is only for experts and
degree holders
05 It is always risky
06
Here those who takes more risk
always makes more profits
07
Low price stocks are always
cheap we should buy them
08
High price stocks are always
costly we should never buy them

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Lack of discipline
01
Fighting with the market
02
Pre-determined judgement
03
Trading without any plan
04
Why Do Most
People Fail In
Stock Market?
Lack of discipline
05
No proper guidance and support
06
Driven by emotions
07
Expecting immediate results
08

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Systematic learning
The content are well designed to
ensure systematic learning
throughout the course
Better control over
emotions
Emotion plays huge role in stock
market, we train our members about
emotional intelligence
Healthy portfolio
We suggestmembers with Long
term investment stocks to build
an portfolio.
A professional way to
approach market
We do everything in professionalway,
and we make our members to practice
the same. We don’t gamble!
What You Should Expect
From Our Course?
Building
Trading
Mindset
Building
Trading
Mindset

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When Can We
Actually Start
Our Trading?
Strictly No, from the first day
100%
Learn basics
100%
Clear your
advance level
100%
Back test your
learnings on paper
100%
Take trade with virtual
money in live market
100%
Start trading with
very small capital
100%
Scale up capital only after
gaining consistency in profits

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What you’re going to learn Next!
Major market participants
Market capitalisation
Major strategies
Begin
Let’s
Process of trading
Market timings
Best broker for us?
Major exchanges in india
The concept of short selling

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Major Market Participants
Companies
Companies from various
sectors participate in the stock
markets by filing an (IPO) and
thereby getting listed on the
stock exchanges.
Investors and Traders
Retail participants, domestic
institutions, Domestic asset
management companies,
Foreign institutional investors
and NRI
Depository (DP) and
Depository Participants
In India, (NSDL) and (CDSL) are
the only depositories. DP is
governed by the regulations
laid out by the SEBI
Clearing Corporations
They ensure guaranteed
settlement of your trades.
National Security Clearing
Corporation Ltd and Indian
Clearing Corporation Ltd
Participants simply here refers to the total number of peoplewho makes the market
These are majorly classifiedas :

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Major Market Participants
Participants simply here refers to the total number of peoplewho makes the market
These are majorly classifiedas :
Banks
Banks facilitate funds transfer
from your bank account to
your trading account and vice
versa.
Stock Exchanges
A stock exchange or securities
exchange, is an organization
that facilitates listed stock
brokers and traders to buy and
sell securities
Stock Brokers
A stock broker or share broker
is registered as a trading
member with the stock
exchange and holds a stock
broking license.
Regulators
In India, the stock market
regulator is called The
Securities and Exchange board
of India often referred to as
SEBI.

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Web trading applications
Terminal software
Process Of
Trading
Before the advent of the internet,
you were required to physically
visit brokers, and instruct them
for transactions. But now
stockbrokers provide digital
trading platforms, where you can
trade through
Mobile-based apps

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After providing the
details of your Demat
Account and Trading
Account to the broker,
you need to specify the
amount of stocks to be
sold or purchased.
The broker checks
whether your account
has the requisite funds.
Your order is now
passed for execution in
the stock exchange.
The exchange then
confirms the transfer of
ownership of shares.
Depending upon the
market movement, you
either make a profit or
loss from the
transaction.
How Does The Actual Trading Occur?

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Bombay Stock
Exchange (BSE)
National Stock
Exchange (NSE)
Metropolitan Stock
Exchange (MSE)
Calcutta Stock
Exchange (CSE)
Major Exchanges In India
H e r e i s t h e l i s t o f m a j o r s t o c k e x c h a n g e s i n I n d i a

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India International
Exchange (India INX)
NSE IFSC Ltd
National commodity and
derivatives exchange
(NCDEX)
Multicommodity exchange
(MCX)
Major Exchanges In India
H e r e i s t h e l i s t o f m a j o r s t o c k e x c h a n g e s i n I n d i a

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