This document provides an overview of how stock markets work. It defines a stock market as a public entity for trading company stock shares. Stocks are listed and traded on stock exchanges. Companies raise money by either borrowing or selling stakes to investors through stock offerings. A stock exchange is a market where securities like stocks and bonds are bought and sold, with the initial offering in the primary market and later trading in the secondary market. The roles of stock exchanges include raising capital, mobilizing savings, and facilitating company growth. Successful stock trading requires picking the right stocks and times to buy and sell, using stock brokers, and opening a demat account. The document provides advice such as investing in fundamentally strong companies and avoiding panic or huge investments.

1. JAIPUR NATIONAL UNIVERSITY
SUMMITED BY- SURJIT JHA
SUBJECT- STOCK MARKET

2. STOCK MARKET
MACHANISM

3. WHAT IS A STOCK MARKET ?
 A stock market or equity market is a public
entity for the trading of company
stock(shares).
 These are securities listed on a stock
exchange as well as those only traded
privately.
 The stocks are listed and traded on stock
exchanges which are entities of a corporation
or mutual organization. The largest stock
market in the USA, by market capitalization,
is the NYSE.

4. WHAT ARE STOCKS ?
 At every point , just about every company
needs to raise money . In each case , they
have two choices :
A. Borrow the money ,
B. Raise it from investors by selling them a
stake in a company.

5. WHAT IS A STOCK EXCHANGE ?
 A market in which securities are bought and
sold: “the company was floated on the Stock
Exchange”.
 The initial offering of stocks and bonds to
investors is by definition done in primary
market and subsequent trading is done in the
secondary market.
 A stock exchange is often the most important
component of stock market

6. ROLE OF STOCK EXCHANGE
 Raising capital for business
 Mobilizing savings for investments
 Creating investment opportunities for small
co..
 Government capital raising for development
 Facilitates company growth.

7. STOCK TRADING
 Stock trading is not just buying and selling
stocks at the stock market, there are so
many other factor that need to be taken care
of for successful stock trading.
 Anyone who invests in the stock market
wishes to make profit from the investments.
To ensure that you get significant return from
your investment you have to pick up the right
time.

8. STOCK BROKERS
 An agent that charges a fee or commission
for executing buy and sell orders submitted
by an investor.
 The firm that act as an agent for a customer,
charging the customer a commission for its
services.
 You can either opt for a conventional broker
or you can choose to trade online.

9. DP OR DEMAT A/C
 A demit account is opened on same lines as
that of a bank account.
 Prescribed account opening forms are
available with the DP, needs to be filled in.
 Standard Agreements are to be signed by
the client and the DP.

10. GENERAL MARKET ADVICE
 Never chase a stock.
 Buy when markets are in the grip of panic.
 Only buy fundamentally strong stocks,
which are undervalued.
 Buy stocks grown in top line and bottom
line over the past years.
 Invest in companies with proven
management.
 Avoid loss- making companies.

11. WHAT YOU MUST DO
 Get of the junk
 Diversify
 Believe in your investment
 Stick to your strategy

12. WHAT YOU MUST NOT DO
 Don’t panic
 Don’t make huge investment
 Don’t chase performance
 Don’t ignore expenses

13. THANK YOU