The document discusses the Indian stock market. It defines key terms like shares, stock exchanges, and how the buying and selling of stocks works. The two major stock exchanges in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Stock prices fluctuate daily due to supply and demand from investors. Factors like company profits, market trends, and news events can influence demand and cause prices to rise or fall. The stock market offers opportunities to make money through dividends, trading, or long-term share appreciation.

1. INDIAN
STOCK
MARKET
Aman Vishwakarma
BIST
Roll No: 2246900004

2. WHAT IS STOCK EXCHANGE?
 Buying and selling of stocks (also called shares)
 Claims ownership on businesses.

3. WHAT IS SHARE?
In financial market, a share is a
percentage of ownership in a company
or a financial asset.
# Shareholders

4. BASIC ACTIVITIES IN STOCK MARKET
 Buying
 Selling
So,
 Either buy & then sell or
 Sell & then buy (?????????)

5. MAJOR STOCK EXCHANGES IN INDIA
 NSE – National Stock Exchange
 BSE – Bombay Stock Exchange

6. NATIONAL STOCK EXCHANGE
 The National Stock Exchange (NSE) is the leading stock exchange in India.
 NSE was the first exchange in India to implement electronic or screen-based trading.
 Market cap: US$3.4 trillion (August 2021)
 Location: Mumbai, Maharashtra, India
 Founded: 1992; 30 years ago
 No. of listings: 2,002

8. BOMBAY STOCK EXCHANGE
 BSE Limited is an Indian stock exchange located on Dalal Street in Mumbai. Established in 1875
by cotton merchant Premchand Roychand, a Jain businessman, it is the oldest stock exchange
in Asia, and also the tenth oldest in the world.
 Market cap: ₹276.713 lakh crore (US$3.5 trillion) (Jan 2022)
 Founded: 9 July 1875; 147 years ago
 No. of listings: 5,439

10. WHAT DETERMINES STOCK PRICE MOVEMENT?
Stock prices change everyday by market forces. By this we mean that share prices change because of
supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price
moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply
than demand, and the price would fall and vice-versa.

11. IMPORTANT TERMS
 Demat Account – A Demat account is a necessary account to hold financial securities in a digital form and to
trade shares in the share market.
 IPO (Initial Public Offering) – An initial public offering or stock launch is a public offering in which shares of a
company are sold to institutional investors and usually also to retail investors.
 Broker – A broker is an intermediary between those who want to make trades and invest and the exchange in
which those trades are processed. You need a broker because stock exchanges require that those who execute
trades on the exchange be licensed.

12. WORKING OF STOCK MARKET
Company listing
Issue IPO
Share Distribution
Primary Market
Secondary Market
(Trading Begins)

13. HOW ORDER IS PROCESSED?
Broker debits/credits your account
Exchange confirms to broker
Exchange finds counter party
Broker sends it to exchange
Place Order (Via Terminal)

14. STOCK MARKET TRENDS
 Bear Market - A bear market occurs when a market experiences prolonged price declines. Bear
markets can be cyclical or longer-term. The former lasts for several weeks or a couple of months and
the latter can last for several years or even decades.
 Bull Market - A bull market occurs when securities are on the rise. A bull market is an extended period
of time when stock prices rise and investors are optimistic. Bull markets can last for months or even
years, and stocks tend to outperform other investments like bonds.

15. STUDY OF PRICE FLUCTUATIONS
Factors which govern the demand and supply of shares are studied through two
ways of analysis:
 Fundamental analysis
 Technical analysis

16. WAYS OF MAKING MONEY
 Dividends
 Buy and keep shares.
 When company makes profit, divided among shareholders.
 Active Trading
 Not interested in ownership.
 Buy & sell or sell & buy.

17. WHO LOSES MONEY IF
SOMEONE BOOKS PROFIT?

18. WHO LOSES MONEY IF SOMEONE BOOKS PROFIT?
To understand this with an example, one has a bottle full of water which is being sold in the middle of
desert. Now you can imagine the scarcity of water in such place and when the demand is high and supply
is low. So the cost of product will be higher than usual but the cost of same bottle when sold in urban
area where there are so many water sources and too many competitor the cost of same bottle fells down.
This happens in stock market too where the price of share can vary from various such circumstances.

19. WHAT DOES STOCK MARKET OFFERS?
EQUITIES
 Equities
 Exchange Traded Funds
 Indices
 Initial Public Offerings
 Mutual Funds
 Security Lending and
Borrowing Scheme
DERIVATIVES
 Equity Derivatives
 Currency Derivatives
 Global Indices Derivatives
 Futures and Options
 Bond Futures
DEBT
 Debt Segment
 Corporate Bonds

20. REGULATORY BODY
Securities & Exchange Board of India (SEBI)
 Regulatory authority established under the SEBI Act 1992
 SEBI’s primary functions include protecting investor interests.

21. INTRESTING TRIVIA
This guy by the name of Ravi called up a show on Zee Business to get some advice on some
shares. He shared that in 1990 his grandfather brought shares worth ₹20,000 of MRF and right
after buying it he went into a coma due to an unfortunate accident. Then he mentioned that his
grandfather is now doing better and has gifted the shares certificate to him. After proper
discussion, the show's anchor figured out that each of those shares is now valued at ₹64,900
and the value of the total shares is over 130 crore! It is like finding a hidden treasure.

22. “Respect the market. Have an open mind. Know what to stake.
Know when to take a loss. Be responsible.”
- Rakesh Jhunjhunwala
“Compound interest is the 8th wonder of the world”
- Albert Einstein

23. REFERENCES
WEBSITES
− Investopedia (investopedia.com)
− Wikipedia (en.wikipedia.org)
− NSE (nseindia.com)
− BSE (bseindia.com)
− Economic Times (economictimes.com)