SHARE MARKET PRESENTED BY JITHIN K C WHAT

SHARE MARKET PRESENTED BY : JITHIN K. C

WHAT IS A SHARE AND SHARE MARKET? Shares are issued by companies in order to raise capitals and are bought by investors in order to acquire ownership in a business. A stock market or equity market is a market for trading the company stock (shares).

WHO IS A SHARE HOLDER ? A share holder (or stock holder) is an individual or company (including a corporation) that legally owns one or more shares of a company. Share holders are granted privileges to have company’s dividends and bonuses.

WHY DOES A COMPANY ISSUE SHARES IN TO THE PUBLIC ? A company may want additional capital to invest in new projects. Financing a company through the sale of stock in a company is known as equity financing.

STOCK EXCHANGES IN INDIA There are 22 stock exchanges in India. But, two of them are biggest. NSE (National stock exchange) - is the 9 th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades. BSE (Bombay stock exchange) - is the oldest stock exchange in Asia with a rich heritage of over 137 years of existence.

NATIONAL STOCK EXCHANGE Location: Mumbai Index: Nifty Consist of group of 50 Stocks Date of Launch: April 1994 Timing: 09. 30 AM to 03. 30 PM Members 726

BOMBAY STOCK EXCHANGE Location: Mumbai Index: Sensex Consist of group of 30 Stock Date of Launch: 03 January 1986 Timing: 09. 30 AM to 03. 30 PM Listed Co. : over 6000

HOW TO DEAL AND INVEST IN STOCK EXCHANGE ? The market regulator, the Securities and Exchange Board of India (SEBI), has made it compulsory to open the Demat and Trading Account if you want to buy and sell stocks. A person want to buy/sell stocks in the has to first place his/her order with a broker(OFFLINE TRADING) or can do themselves using online trading systems(ONLINE TRADING).

STOCK BROKER A stock broker is person who is licensed to trade in shares. Brokers also have direct access to the share market and can act as your agent in share transactions. For this service they charge a fee. i. e, Brokerage. Eg; ICICI Bank, Geojit, 5 paisa and Bank of Baroda.

WHAT IS TRADING ACCOUNT AND DEMAT ACCOUNT? Trading account is used to place buy or sell orders in the stock market through broker. Demat account is used as a bank account where shares bought are deposited in it. DEMAT stands for DEMATerialization. It is process in which physical paper shares are converted into paperless (computerized) form. In India there are two Depository organizations, NSDL (National Securities Depository Ltd. ) CDSL (Central Depository Services India Ltd. )

STOCK MARKET CONDITIONS There are two ways to describe the general conditions of the stock market: 1)BULL MARKET 2)BEAR MARKET Bull Market(+): A Bull Market indicates the constant upward movement of the stock market. A particular stock that seems to be increasing in value is described to be bullish. Bear Market(-): A bear market indicates the continuous downward movement of the stock market. stock that seems to be decreasing in value is described to be bearish.

TRADING The shares of a company are in general be transferrable from one shareholder to another. This leads to buying and selling of shares termed as trading. Investors usually buy and sell shares on the exchanges through a stock brokers registered with the exchange.

TYPES OF TRADING INTRADAY TRADING Buying and selling of stocks within the same trading day. Only a little capital investment is required by the trader as transactions can be made in small margins. DELIVERY TRADING Shares bought and can be maintained for a longer duration for higher profit. So it is considered as a delivery trade. Delivery trading requires complete amount for its transactions.

ADVANTAGES AND DISADVANTAGES OF INTRADAY TRADING ADVANTAGES • Only a little capital investment is required by the trader as payments can be made in small margins. • It eliminates the overnight risks of the stocks. • It provide short selling. DISADVANTAGES • There are no long-term capital investments. • It have risk in full amount. • It requires constant attention of the trader as trades end by the end of the day.

ADVANTAGES AND DISADVANTAGES OF DELIVERY TRADING ADVATAGES • There is no time limit to sell stocks. • It helps in significantly increasing the profits of the investor as higher returns are provided to the owner through the company’s dividends and bonuses. DISADVANTAGES • Complete upfront payments: No trading can take place if the investor cannot pay the entire amount of transaction up front.

EXAMBLE FOR TRADING When trader have credit of Rs. 5000 and stock have Rs. 100. Then, INTRADAY DELIVERY Buy = 500 Shares(Rs. 50000) Buy = 50 Shares(Rs. 5000) Share price move to rs. 110 after trading, then trader profit is rs. 5000. ie, 500*110 = 55000. Now in account 5000+5000 = 10000 Share price move to rs. 90 after trading, then trader lose is rs. 5000. ie, 500*90 = 45000 Now in account 5000 -5000 = 0

PROFIT IN TWO STOCKS MANAPPURAM FINANCE WIPRO

WIPRO INVESTMENT GROWTH Rs. 100 BECOME Rs. 56064000 IN 37 YEARS DATE RATIO 1980 SHARE ACTION 1 BUY 1(Rs 100) 22 -10 -1981 1: 1 2 BONUS 22 -10 -1985 1: 1 4 BONUS 15 -11 -1987 1: 1 8 BONUS 22 -10 -1989 1: 1 16 BONUS 30 -10 -1990 100/10 160 FV SPLIT 30 -07 -1992 1: 1 320 BONUS 01 -02 -1995 1: 1 640 BONUS 13 -09 -1997 2; 1 1920 BONUS 30 -04 -1999 10/2 9600 FV SPLIT 16 -04 -2004 2: 1 28800 BONUS 22 -04 -2005 1: 1 57600 BONUS 23 -04 -2010 2: 3 96000 BONUS 25 -04 -2017 1: 1 192000 BONUS TOTAL VALUE IN 2017 = 292(PRICE FOR ONE SHARE)*192000=56064000

CHART OF WIPRO ONE DAY ONE YEAR

TRADE STATION

COUNTER OF A SHARE

REFERENCE WEBSTES: BOOKS: https: //www. moneycontrol. com https: //www. screener. in https: //in. investing. com https: //www. nseindia. com https: //www. bseindia. com How to Make Money in Stocks- William O’Neil Trade Like A Stock Market Wizard- Mark Minervin Winning on Wall Street- Martin Zweig

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