This document provides an overview of the stock market and how to invest. It defines the stock market as the physical and virtual locations for buying and selling stocks. There are two main types of markets - the primary market where companies first issue stock, and the secondary market where existing stocks are traded. The document outlines three ways individuals can make money in the stock market: holding stocks long-term, high-frequency trading, and illegal tactics. It also lists five reasons why traders often lose money and emphasizes the importance of understanding market trends and phases.

1. • BY :
 MOHAMMED ASIF
 MOHAMMED ATHAR
 MOHAMMED AZMATH
 MOHAMMED FASIL
 MANJUNATHA G.B
 MITHUN KUMAR

3. SHARE MARKET - BASICS
• DEFINITION…..
STOCK MARKET IS A TERM USED TO DESCRIBE THE PHYSICAL LOCATION
WHERE THE BUYING AND SELLING OF STOCKS TAKE PLACE AS WELL AS THE
OVERALL ACTIVITY OF THE MARKET WITHIN A PARTICULAR COUNTRY..
• Benefits of investment in stock market.
 Interest rate is higher than bank rate.
 Capital appreciation.
 Do not want to work on it.
 TDS (tax deducted at source)

4. TWO TYPES OF INSTRUMENTS TO
INVEST IN:
BONDS STOCKS
A STEADY RATE OF RETURN. RETURN IS UNCERTAIN.
RISKINESS IS LESS. MORE RISKY WHEN COMPARED TO
STOCKS.
NOT AFFECTED MUCH BY MARKET
FLUCTUATIONS.
AFEECTED BY MARKET FLUCTUATIONS.
RETURNS ARE FIXED AND LESS. RETURNS ARE UNCERTAIN BUT MORE.
DOESN’T GIVE A SHARE OF THE EXTRA
PROFIT.
PROVIDES EXTRA DIVIDEND WHEN
PROFIT IS MORE.

5. TYPES OF MARKET WE CAN
INVEST IN:
• PRIMARY MARKET….
 An Issuer/Company enters the Primary markets to raise capital.
 They issues new securities in Exchange for cash from an investor
(buyer).
 If the Issuer is selling securities for the first time, these are referred to
as Initial Public Offers(IPO's).
 Summing up, Primary Market is the means by which companies float
shares to the general public in an Initial Public Offering to raise capital.

6. TYPES OF MARKET… CONTD…
• SECONDARY MARKET…
 Secondary Market transactions are referred to those transactions where
one investor buys shares from another investor at the prevailing market
price.
 The Secondary Market or the Stock Exchanges are regulated by the
regulatory authority.
 In India, the Secondary and Primary Markets are governed by the
Security and Exchange Board of India (SEBI).
WE HAVE DECIDED TO INVEST IN THE
SECONDARY MARKET

7. A GOOD INVESTOR……
 KNOWLEDGE ABOUT GRAPHS AND PATTERNS…..
 THREE SURE SHOT WAYS OF MAKING MONEY IN
THE STOCK MARKET…
 FIVE REASONS WHY STOCK MARKET TRADERS
LOSE MONEY…

8. LEARNING ABOUT PATTERNS….
• Patterns are graphs that put all buying and selling into perspective by
consolidating the forces of supply and demand into a concise picture. As a
complete pictorial record of all trading, chart patterns provide a
framework to analyze the battle raging between bulls and bears.
• Most important trend predictor…
HEAD AND SHOULDER PATTERN…

9. THREE WAYS OF MAKING MONEY IN
THE STOCK MARKET….
1) PEOPLE WHO HOLD FOREVER…..
EXAMPLE: BILL GATES…
These investors hold shares of a company, pretty much forever, and that is the
bulk of their net worth.

10. THREE WAYS OF MAKING MONEY IN
THE STOCK MARKET…. CONTD……
2) People who hold for a trillionth of a second….
EXAMPLE: GOLDMAN SACHS
High-frequency traders trade thousands or even millions of times in a second.
They take tiny little arbitrages and add them up throughout the day. They rarely
have a losing day.

11. THREE WAYS OF MAKING MONEY IN
THE STOCK MARKET…. CONTD……
3) People who do something fishy.
EXAMPLE: HARSHAD MEHTA..
People who take all possible illegal steps to make lots of money ….

12. FIVE REASONS: WHY TRADERS LOSE
MONEY…
I. Trading during the first half-hour of the session
II. Failing to hear the market's message
III. Ignoring which phase the market is in
IV. Trading for emotional highs
V. Over-eagerness in booking profits

13. CONCLUSIONS
• There is no role of emotions in stock trading.
• Have a good knowledge about the market before
investing.
• Follow the market trends for better understanding.
• Know about the public’s perception about the
company before investing in an IPO.
• Always remember – TREND REPEATS ITSELF….