The document discusses share markets and how they work. It defines key terms like primary market, secondary market, bulls and bears. The primary market is where companies issue IPOs to raise funds, while the secondary market is where existing shares are traded. Brokers facilitate trades on the stock exchange, which regulates markets and ensures orderly transactions. Investors can purchase shares to share in company ownership and profits. Overall the share market benefits both companies and investors.

2. SHARE MARKET
• AGGREGATION OF BUYERS AND SELLERS
• THE STOCK MARKET IS A SHARE MARKET, HOWEVER BESIDES SHARES OF COMPANIES, OTHER
INSTRUMENTS LIKE BONDS, MUTUAL FUNDS AND DERIVATIVE CONTRACTS TOO ARE TRADED IN THE
STOCK MARKET.
• THE TOTAL CAPITAL OF COMPANY IS ESTIMATED, REGISTERED AND DIVIDED INTO UNITS OF EQUAL VALUE.
THIS UNITS ARE KNOWN AS SHARES AND COLLECTIVELY THEY ARE KNOWN AS SHARE CAPITAL.

3. WORKING OF SHARE MARKET
• A platform where financial instruments like stocks and derivatives are traded.
• Market participants have to be registered with the stock exchange and SEBI to
conduct trades.
• This includes companies issuing shares, brokers conducting the trades, as
well as traders and investors.
• All of this is regulated by the Securities and Exchange Board of India (SEBI),
which makes the rules of conduct.

4. TYPES OF SHARE MARKET
• PRIMARY SHARE MARKET
• SECONDARY SHARE MARKET

5. PRIMARY MARKET
• A COMPANY ENTERS THE PRIMARY MARKET TO RAISE FUNDS. IT IS IN THE PRIMARY MARKET THAT A COMPANY GETS
REGISTERED TO ISSUE SHARES TO THE PUBLIC AND RAISE MONEY.
• A COMPANY GETS LISTED IN THE PRIMARY MARKET THROUGH AN INITIAL PUBLIC OFFERING (IPO).
• DURING LISTING, THE STOCKS ISSUED IN THE PRIMARY MARKET ARE ALLOTTED TO INVESTORS WHO HAVE BID FOR THE
SAME.
• WHILE GOING FOR AN IPO, THE COMPANY HAS TO PROVIDE DETAILS ABOUT ITSELF, ITS FINANCIALS, IT PROMOTERS, ITS
BUSINESSES, STOCKS BEING ISSUED, PRICE BAND AND SO ON.

6. SECONDARY MARKET
• THE LISTED STOCKS ISSUED CAN BE TRADED BY THE INVESTORS IN THE
SECONDARY MARKET.
• STOCK BROKERS AND BROKERAGE FIRMS PLAY ROLE.
• ONCE YOU PLACE AN ORDER TO BUY A PARTICULAR SHARE AT A SAID PRICE, IT IS
PROCESSED THROUGH YOUR BROKER AT THE EXCHANGE.
• ONCE A SELLER AND A BUYER ARE FIXED, A PRICE IS AGREED FINALIZED UPON
WHICH THE EXCHANGE COMMUNICATES TO YOUR BROKER THAT YOUR ORDER
HAS BEEN CONFIRMED.
• THE EXCHANGE ALSO CONFIRMS THE DETAILS OF THE BUYERS AND THE SELLERS
TO ENSURE THE PARTIES DON’T DEFAULT.

7. • THE EXCHANGE ALSO CONFIRMS THE DETAILS OF THE BUYERS AND THE SELLERS TO ENSURE THE PARTIES
DON’T DEFAULT.
• THE TRADING PROCESS HAS BECOME ELECTRONIC TODAY. THIS PROCESS OF MATCHING BUYERS AND
SELLERS IS DONE THROUGH COMPUTERS. AS A RESULT, THE PROCESS CAN BE FINISHED WITHIN
MINUTES.
ORDER PROCESSING

8. EXAMPLE
• FOR EXAMPLE: SHARES OF TATA STEEL ARE TRADING IN THE MARKET AT RS 230 A SHARE. AN INVESTOR
CAN BUY THESE SHARES AT CURRENT MARKET PRICE AND WILL GET PART-OWNERSHIP OF THE COMPANY
AND BECOME A SHAREHOLDER.
• THE SHARE MARKET IS A SOURCE FOR COMPANIES TO RAISE FUNDS AND FOR INVESTORS TO BUY PART-
OWNERSHIP IN GROWING BUSINESSES AND GROW THEIR WEALTH. ON BECOMING A SHAREHOLDER, AN
INVESTOR EARNS A PART OF THE PROFITS EARNED BY THE COMPANY BY WAY OF DIVIDEND. AT THE SAME
TIME, THE INVESTOR ALSO UNDERTAKES THE RISK TO BEAR LOSES, SHOULD THE BUSINESS FAIL TO
PERFORM WELL. MARKET PARTICIPANTS NEED TO GET REGISTERED WITH THE STOCK EXCHANGE AND
MARKET REGULATOR SEBI TO BE ABLE TO TRADE IN THE STOCK MARKET.

9. STOCK EXCHANGE
• THE SECURITIES REGULATION ACT OF 1956DEFINED STOCK EXCHANGE AS “AN ASSOCIATION,
ORGANIZATION, OR A INDIVIDUAL WHICH IS ESTABLISHED FOR THE PURPOSE OF ASSISTING,
REGULATING, AND CONTROLLING BUSINESS IN BUYING, SELLING AND DEALING IN SECURITIES.”
• A STOCK EXCHANGE IS AN WHERE STOCK BROKERS AND TRADERS CAN BUY AND SELL SHARES OF STOCK,
BONDS, AND OTHER SECURITIES.
• MANY LARGE COMPANIES HAVE THEIR STOCKS LISTED ON A STOCK EXCHANGE. THIS MAKES THE STOCK
MORE LIQUID AND THUS MORE ATTRACTIVE TO MANY INVESTORS.
• THE EXCHANGE MAY ALSO ACT AS A GUARANTOR OF SETTLEMENT. OTHER STOCKS MAY BE TRADED "OVER
THE COUNTER" (OTC), THAT IS, THROUGH A DEALER.
• SOME LARGE COMPANIES WILL HAVE THEIR STOCK LISTED ON MORE THAN ONE EXCHANGE IN DIFFERENT
COUNTRIES, SO AS TO ATTRACT INTERNATIONAL INVESTORS.

10. FEATURES OF STOCK EXCHANGE
• IT IS AN ORGANIZED MARKET
• IT IS A SECURITIES MARKET
• IT IS AN IMPORTANT CONSTITUENT OF CAPITAL MARKET I.E., MARKET FOR LONG- TERM FINANCE
• IT IS A VOLUNTARY ASSOCIATION OF PERSONS DESIROUS OF DEALING IN SECURITIES
• STOCK EXCHANGE IS A VOLUNTARY ASSOCIATION, ITS MEMBERSHIP IS NOT OPEN TO EVERYBODY
• IN A STOCK EXCHANGE, ONLY THE MEMBERS CAN DEAL IN I.E., BUY & SELL SECURITIES
• THE MEMBERS OF A STOCK EXCHANGE CAN BUY AND SELL SECURITIES EITHER AS BROKERS FOR & ON BEHALF OF
THEIR CLIENTS
• THE DEALINGS IN A STOCK EXCHANGE ARE UNDER CERTAIN ACCEPTED CODE OF CONDUCT I.E., RULES AND
REGULATIONS

11. FUNCTION OF STOCK EXCHANGE
• PROVIDE CENTRAL AND CONVENIENT MEETING PLACES FOR SELLERS AND BUYER OF SECURITIES
• INCREASE THE MARKETABILITY AND LIQUIDITY OF SECURITIES
• CONTRIBUTE TO STABILITY OF PRICES OF SECURITIES
• EQUALIZATION OF PRICE OF SECURITIES
• SMOOTHEN PRICE MOVEMENT
• HELP THE INVESTORS TO KNOW THE WORTH OF THEIR HOLDINGS
• PROMOTE THE HABIT OF SAVING AND INVESTMENT
• HELP CAPITAL FORMATION
• HELP COMPANIES AND GOVERNMENT TO RAISE FUNDS FROM THE INVESTORS
• PROVIDE FORECASTING SERVICE

12. BROKER AND JOBBER
• BROKER
• HE IS ONE ACTS AS A INTERMEDIARY ON BEHALF OF OTHERS. A BROKER IN A STOCK EXCHANGE ,IS A
COMMISSION AGENT WHO TRANSACTS BUSINESS IN SECURITIES ON BEHALF OF NON MEMBERS.
• JOBBER
• HE IS NOT ALLOWED TO DEAL WITH THE PUBLIC DIRECTLY .HE DEALS WITH BROKERS WHO ARE ENGAGED WITH
THE INVESTORS . THUS, THE SECURITIES IS BOUGHT BY THE JOBBER FROM MEMBERS AND SELLS TO MEMBERS
WHO ARE OPERATING ON THE STOCK EXCHANGE AS BROKER.

13. BULL & BEAR
• BULL IS SPECULATOR WHO EXPECTS THE FUTURE RAISE IN PRICE OF SECURITIES HE BUYS THE SECURITIES TO
SELL THEM AT FUTURE DATE AT THE HIGHER PRICE. HE IS CALLED AS BULL BECAUSE HIS ACTIVITIES
RESEMBLES AS A BULL ,AS THE BULL TENDS TO THROW ITS VICTIMS UP IN THE AIR THROUGH IT SHORN. IN
SIMPLE THE BULL SPECULATOR TRIES TO RAISE THE PRICE OF SECURITIES BY PLACING A BIG PURCHASE
ORDERS.
• BEAR IS SPECULATOR WHO EXPECTS FUTURE FALL IN PRICES , HE DOES AN AGREEMENT TO SELL SECURITIES
AT FUTURE DATE AT THE PRESENT MARKET RATE . HE IS CALLED AS BEAR BECAUSE HIS ALTITUDE RESEMBLES
WITH BEAR , AS THE BEAR TENDS TO STAMP ITS VICTIMS DOWN TO EARTH THROUGH ITS PAWS . IN SIMPLE
THE BEAR SPECULATOR FORCES OF PRICES OF SECURITIES TO FALL THROUGH HIS ACTIVITIES.

14. LARGEST STOCK EXCHANGES
• HONG KONG STOCK EXCHANGE
• TORONTO STOCK EXCHANGE
• OTC EXCHANGE
• BM&F BOVESPA
• PUNE STOCK EXCHANGE
• NASDAQ OMX STOCK
• INTERCONNECTS EXCHANGE EXCHANGE
• LONDON STOCK EXCHANGE
• BOMBAY STOCK EXCHANGE
• NATIONAL STOCK EXCHANGE OF INDIA(NSE (NSEI)
• OVER-THE-COUNTER EXCHANGE OF INDIA (OTCEI)
• SECURITIES AND EXCHANGE BOARD OF INDIA
(SEBI)
• TOKYO STOCK EXCHANGE

15. HOW TO INVEST IN SHARES
• STEP 1
• UNDERSTAND YOUR INVESTMENT REQUIREMENTS AND LIMITATIONS. YOUR REQUIREMENTS SHOULD TAKE INTO
ACCOUNT THE PRESENT AS WELL AS THE FUTURE.
• STEP 2
• ANALYZE THE STOCK MARKET AND DECIDE YOUR INVESTMENT STRATEGY

16. • STEP 3
• TIME IS OF UTMOST IMPORTANCE IN THE STOCK MARKET, SO WAIT FOR THE RIGHT TIME.
• MERELY GETTING THE STOCK RIGHT IS NOT ENOUGH. YOUR PROFITS WILL BE MAXIMIZED ONLY IF YOU BUY AT
THE LOWEST LEVEL POSSIBLE. THE SAME APPLIES IF YOU ARE SELLING YOUR SHARES. THIS NEEDS TIME.
• STEP4
• CONDUCT YOUR TRADE EITHER ONLINE OR ON THE PHONE THROUGH YOUR BROKER.
• ENSURE THAT YOUR BROKER CONFIRMS THE TRADE AND GETS ALL THE DETAILS RIGHT.
• RECHECK THE TRADE CONFIRMATION TO AVOID ERRORS.
• STEP5
• MONITOR YOUR PORTFOLIO REGULARLY. THE STOCK MARKET IS DYNAMIC.
• COMPANIES MAY SEEM PROFITABLE ONE MOMENT, AND NOT-SO PROFITABLE THE NEXT DUE TO SOME
UNFORESEEN FACTOR.
• ENSURE YOU REGULARLY READ ABOUT THE COMPANIES YOU HAVE INVESTED IN. IN THE CASE OF SOME
UNFORTUNATE SITUATION, THIS WILL HELP YOU MINIMIZE YOUR LOSSES BEFORE IT IS TOO LATE.

17. THANK YOU