This document provides guidance for investors on investing in corporate securities. It discusses the nature of equity shares and their long-term investment horizon. Key factors for investors to consider include consistently good company performance, efficient management, rewarding shareholders, and decent governance. The document also cautions against technical analysis, media opinions, and market expectations. Timing of purchases and sales should go against market sentiment. Overall, the document advises building a diversified portfolio and maintaining a long-term, disciplined approach to investing in stocks.

1. Intricacies of Investment in Corporate Securities Investor Awareness Week, ICWAI, Grace Towers, Mangalore. February 12, 2011

2. Equity Shares: Nature Equity shares of listed companies Ready Market Long-term Investment Meant for Seasoned Investors Study of Companies Involves procedures

3. King of Investment Dividend: Interim, Final and Special Bonus Shares Market Value Stock-Split Buy-back Rights Issue Sponsored Issue Strategic Value

4. Qualities Needed Control on Emotions Building up Rome Going against Current Understanding Market & Companies Disbelief in market sentiments Impact of Economic Events Mistrust the Obvious Total Faith

5. Current Scenario: Problems Inflation Scams Swiss Bank Accounts Political Impasse Budget Blues Infrastructure Slowdown Reliance Conflict Poor Market Sentiments

6. Getting Started………. -opening a bank account -opening a demat account -opening a trading account -selection of sector -selection of Companies -timing of purchase -timing of exit, if unavoidable

7. Selection of Sector High Growth Sector: IT, Telecom, Pharmaceuticals, Automobiles, Auto-ancillaries, Financial Services Stable Industries: FMCG, Agro-inputs, Steel, Cement, Metals, Banks Sunrise Industries: Nuclear Power, Cooling Tower Construction, Railway Wagons and Locomotives, Infrastructure, Power, Ship-building

8. Selection of Companies Consistently good performance Efficient management Rewarding shareholders Acquisition spree Professional management High level of skills in project execution Lobbying skill Decent governance

9. Factors to be Considered Price-Earning Ratio Dividend rates Earning per share Growth in sales Auditors Report Avoiding hype Diversification Footprints

10. Sectors to be Avoided Highly seasonal High operating and huge investment Requiring huge size real estate in city centers Constant demand for higher level of funding Acute competition

11. Companies to be Avoided Trading in its shares through investment trusts Controversial management Poor quality of accounting Products of social resistance Very long gestation period Brokers’ favourites

12. Ignorable Factors Technical Analysis Samples of Data Target and Stop-Loss Media analysis Market expectation Opinions of experts Suggestions of fund managers

13. Timing of Purchase & Sale Seasonality of market- year, week, derivative settlements Going counter-market and counter-sentiment Keep investible cash reserves Look for market mistakes Avoid euphoric moments No emotional purchase or sale

14. Avoidable Things Borrowing and Investing Investing Retirement Benefits Temporary Investments Distress Sale Frenzied Buying Betting on a single sector Investing only in Growth Companies Investing only in shares Buying in Heated Market Selling in Depressed Market

15. Wise Investor Shares Information Transparency Unaffected by market movements Unwavering loyalty (staying invested) Designs his own investment objectives Avoids derivatives trading Avoids small and temporary opportunities

16. THANK YOU