This document provides information on stocks, shares, bonds, and how companies issue shares. It defines key terms like shares, stocks, bonds, debentures, initial public offerings, and secondary markets. It also describes various financial intermediaries like stock brokers, depositories, and market watches. Finally, it discusses techniques for analyzing stock prices, including book value, market capitalization, technical analysis tools like line charts, bar charts, and candlestick patterns.

1. -Preksha Sancheti
1512554

2. SHARES & STOCK
SHARE STOCK
(1 Share of the company) (A bundle of shares)

3. BONDS & STOCK
Bonds Stock
Part lenders of the company Part owners of the company
A part of debt of the
companySecurity name for
debentures
A part of equity of the
company
Security name for shares

4. Bonds & Debentures
Bonds are backed by collateral
security
Debentures are backed by
credit
All Debentures are Bonds but
not all Bonds are Debentures.
An Unsecured Bond is a
Debenture.

5. How Does A Company Issue Its Shares?
New Company
Initial Public Offering
Market
Secondary Market

6. New Company
When a new company is formed , the initial
investors apart from the idea generator or the
initiator of the company, are called
ANGEL INVESTORS.

7. IPO Market
• A company goes public when it further plans
to expand its business and requires huge fund
for the same.
• The company first has to convert into a Public
Company and appoint a Merchant Banker.
• The job of the merchant banker is to conduct
diligence on the company filing for an IPO and
ensure the legal proceedings.
• The merchant banker also Underwrites shares
by agreeing to buy a part of the IPO.
• The shares are issued in the market called
IPO.
• The IPO is also knows as the Primary Market.

8. There are two main exchanges followed by traders:
NSE-National Stock Exchange(Nifty)
BSE-Bombay Stock Exchange(Sensex)
Sensex Is calculated by market capitalisation of 30
Companies
Nifty is calculated by market capitalisation of 50
companies
Secondary Market

9. Financial Intermediaries
• Entities that offer services by performing
functions of the stock market.
• Their functions are complied with the
regulations laid down by the SEBI.

10. Stock Broker
• A registered trader with the stock exchange.
• They act like the gateways to stock
exchange.
• They provide Trading Account, used for all
market related transactions.
(buying and selling of shares)
• Facilitate fund transfer between trading and
personal bank accounts.
• They act like a messenger between two
traders .
• Not all brokers facilitate exchanges abroad.

11. Depository
A depository offers the service of Demat account.
They are like banks to the owned shares.
Once the trade is done, the share certificate gets
transferred from trading account and stored in Demat
account.
Currently, there are only two depositories in India;
NSDL-National Securities Depository Limited
CDSL-Central Depository Services Limited

12. MARKET WATCH
A market watch is a forum that provides business
news, analysis and stock market data.

13. Symbol of the
company
Last
Traded
Price
% Change of
price from the
closing price
Last traded
price on the
previous day
Opening Price for
the day
Highest
traded price
Lowest traded
price
Volume of
shares traded

14. NOTE:
1.The opening price differs from the
previous day’s closed price due to the
market timings.
2.The market trades between 9:15am to
3:30pm and remains closed on Saturdays
and Sundays but the companies continue
to operate.
Therefore, prices keep fluctuating even
when the market is shut.
3.Trade is made on lot size of shares. Every
company has its own bundle of shares
which are traded together as a stock.

15. Price Determination of Shares
Book Value
ASSETS LIABILITIES
Equity
Assets-Liabilities=Book Value Of Shares

16. Market Value
What Is Market Capitalisation?
Market capitalisation means to
calculate the market value of the
company.
The total number of shares of a
company trading in the market are
determined.
The current market value of the share
is then multiplied by the total shares.

17. Technical Analysis
It is a method to develop a point of
view on markets.
It helps in identifying the entry and exit time while
trading on a particular stock.
Assumptions in TA
1. Market discounts everything-All known and unknown
activities/information is reflected in the latest price stock.
2. Always prefer knowing ‘HOW’ over ‘WHY’
3. Prices move in a trend. A major rise/fall happens over time
and not immediately.
4. History repeats itself simply because market traders react to
fluctuations in a similar way .

18. Few Technical Tools/Methods
Daily Trade Pattern
Every price movement is recorded to know the
highest and lowest for the day.
It is important to mark the opening and closing to
know the overall price trend for the day

19. Line Chart
The line charts can be plotted
for various time frames
namely monthly, weekly,
hourly etc.
The advantage of the line
chart is its simplicity.
With one glance, the trader
can identify the generic trend of the security.
The line chart does not provide any additional
detail apart from trend of the security.
Line chart takes into consideration only the
closing prices ignoring the open, high and low.

20. Bar Chart
The Bar Chart is a bit more versatile.
It displays all the four price variables namely
open, high, low, and close. A bar has three
components.

21. central line – highest price
bottom end- lowest price
The left mark–open Price
The right mark–close Price
The length of the central line-the range
for the day

22. Candle Stick Pattern
 The candlesticks is originated from Japan.
 The open and close prices are displayed by a rectangular
body.
Candles can be classified as a bullish or bearish candle
usually represented by blue/green/white and red/black
candles respectively.
The consideration given for this presentation is blue and red
combination to represent bullish and bearish candles
respectively.

23. Bullish Candle
The Central real body –
connects the opening
and closing price
Upper shadow – Connects the high point to
the close
Lower Shadow – Connects the low point to
the open

24. Bearish Candle
The Central real body –
connects the
opening and closing price
However the opening is
at the top end and the closing is at the bottom
end of the rectangle
Upper shadow – Connects the high point to the
open
Lower Shadow – Connects the Low point to the
close