a small presentation on basic understanding of stock market

1. STOCK MARKET
BY SK.IMAME AZAM
CO-FOUNDER
KLU-E-MARKET

2. SITES TO LOOK FOR:
 http://edcatiitd.wordpress.com/2012/11/

3. FUTURE?????????
 FUTURE OF YOUR SAVINGS .
 FUTURE OF YOUR CHILDREN.
 FUTURE OF MY OWN LIFE.

4. LETS HEAR A CASE
STUDY

7. WHAT’S NEXT:
 YOUR RESPONSES PLEASE:
 APPROCH A BANK.
 GO FOR MONEY LENDERS(INTERST IS TOO HIGH).
 CAN WE ADD PARTNERS TO IT.

8. FOR EXAMPLE:
To Start A Business you need Rs.1,00,000
 Personally You Have = Rs.50,000
 From Bank Loans = Rs.20,000
 REMAINING?????????

9. THIS OUR POINT
Still you need 30,000 for running Business
Rs.30,000 can be attained by approaching the
Interested persons.

10.  The Persons who contributed for Rs.30,000 will be my Share Holder(owns Share or
Part of the Business).
 Usually you wont prefer others to hold Maximum share (Maximum amount) in your
Company
 To be a owner of a company, You Have to own More than 50% shares of the Total
volume.
For Ex : Total Value of Business = Rs.100,You Prefer to have At least Rs.51.To possess
Control of the Business.
o To Enter into a Stock Market ,Companies must satisfy regulatory Norms of the
Government Board.

11. I GO TO AN INVESTMENT
BANKER

12. VERIFICATION FROM
GOVT.

13. INVESTMENT BANKER
OFFERS

14. IN EXCHANGE HE GETS
MY SHARE

15. IF DEMAND STILL
CONTINUES

16. I NEED MORE STOCK
HOLDERS

17.  I GO TO AGENCY WHERE I COULD GET MY
COMPANY LISTED ON STOCK MARKET

19. I GO ON PUBLIC OFFERING

20. TYPES OF BUSINESS:
 PRIVATE PUBLIC

21. NOW I DIVIDE THE
OWNERSHIP

27. STOCK:
 When you see “stock” think “part owner" of a company. Stock is
an ownership stake in a corporation. A company’ stocks, or
shares, are a way to keep track of the ownership of the company
 If a company has issued 100,000 shares of stock, each individual
share represents 1/100,000th of that company. These shares can be
traded among investors.

28. WHY INVEST IN STOCKS
 You can own a share of the company without having any
involvement in the day-to-day operations — and you can sell your
shares to trade them in for cash at any time
 Stocks are a way for you to invest in companies and earn money
on their growth there’s no better way to earn money with so little
effort.

29.  Typically, the long-term benefits are significant. The past has
proven that when you invest in stocks over long periods of time —
10-15 years or more — your money usually grows more than with
bonds, real estate, bank savings accounts or other types of
accounts, like Certificates of Deposit (CDs).

30.  Many different types of investors hold the shares of a company! The
Govt. may hold some of the shares. Some of the shares may be held by the
“founders” or “directors” of the company. Some of the shares may be held
by the FDI’s etc. etc!
Now, only the “open market” shares that are free for trading by anyone, are
called the “free-float” shares. When we are calculating the Sensex, we are
interested in these “free-float” shares!

31.  Say that you buy 100 shares of stock priced at $15 each. That's a
$1,500 investment. If, after two years, the stock price has risen to
$20, your $1,500 investment has turned into a $2,000 investment, giving
you a $500 profit.
 Say that you buy 100 shares of a stock priced at $50 each. You've made
a $5,000 investment. If, after two years, the stock price has fallen to
$25, your $5,000 investment has turned into a $2,500 investment, giving
you a loss of $2,500.

32. WHY SHOULD I
DIVERSIFY MY STOCKS?
 “Don’t put all your eggs in one basket”

34. HOW DO I PICK WHAT
STOCKS TO INVEST IN?
 Three factors that are significant in sorting stocks into categories
are
 stock size
 stock valuation
 stock geography.

36. WHERE DO I BUY STOCKS?
 You can buy individual stocks through a brokerage account
opened either with a full-service firm or a discount or online
brokerage firm.
 Every stockbroker has to be registered with the Securities and
Exchange Board of India, which is the stock market regulator.

37.  THANK YOU GUYS