A EASY WAY TO EARN THE MONEY @ A EASY WAY TO LOSE THE MONEY

How Companies Raise The Capital By following mean’sDebentures Equity Loan’s

Why Companies Issue Stock?When a company would like to grow, it

issues stocks to raise funds and pay for ongoing business activities

It is popular because: The company does not have to repay the

money Paying dividends is optional

Dividends are distributions of earnings paid to stockholders

What is a Stock?

Stock is a share in the ownership of a company.

It represents a claim on the company's assets and earnings

Whether you say shares, equity or stock, it all means the same thing.

Types of share

Four types of share’s

Ordinary PreferenceCumulative preferenceRedeemable

What is a stock market? Place where business of buying and

selling stock takes place

The stock market is not a specific place, though some people use the term "Dalaal Street”

Market Segments

Primary market -Channel for creation of new securities

Secondary market -The new securities issued in the primary

market are traded the secondary market

Stock exchange world wide New York Stock Exchange - United States

NASDAQ (National Association of Security Dealers Automated Quotations) - United States

Shanghai Stock Exchange - China London Stock Exchange - UK

Stock exchange in India

The Bombay Stock Exchange (BSE) National Stock Exchange of India Ltd

(NSE)

Bombay Stock Exchange (BSE) Following is the timeline on

the rise and rise of the Sensex through Indian stock market history.

1830's Business on corporate stocks and shares in Bank and Cotton presses started in Bombay.

1860-1865 Cotton price bubble as a result of the American Civil War

1870 - 90's Sharp increase in share prices of jute industries followed by a boom in tea stocks and coal

1978-79 Base year of Sensex, defined to be 100.

National Stock Exchange (NIFTY)

November 1992 as a tax-paying company

In April 1993, it was recognized as a stock exchange.

INDEX

SENSEX

Sensex is an index, an index is basically an indicator.

It gives you a general idea about whether most of the stocks have gone up or most of the stocks have gone down. The sensex is an indicator of all the prices of the major companies of the BSE(Bombay stock exchange)

It includes 30 companies

NIFTY(Nifty Fifty)

Nifty is an indicator of all the major companies of NSE.

The Nifty index is a composite of the top 50 stocks listed on the National stock exchange. It is a simplified tool which helps investors & ordinary people alike, understand what happens in the stock market & by extension, the economy.

Market Timings

Trading on the equities segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the exchange in advance)

The market timings of the equities segment are:

Normal market open : 09:55 hoursNormal market close : 15:30 hours

The closing session is held between 15.50 hours and 16.00 hours in NSE and 15.40 hours and 16.00 hours in BSE

Trading on BSE and NSE

BSE and NSE provide trading facility on

two segments ,which are - Cash Segment and - Derivative Segment NSE also has another segment called

WDM, Wholesale Debt Market.

NEAT- Cash

NEAT-F&O

Circuit Breakers

An index based market-wide circuit breaker system applies at three stages of the index movement either way at 10%, 15% and 20%.

The breakers are triggered by movement of either S&P CNX Nifty or Sensex, whichever is breached earlier

As an additional measure of safety, individual scrip-wise price bands has been fixed as below:

Daily price bands of 2% (either way) on a set of specified securities

Daily price bands of 5% (either way) on a set of specified securities

Daily price bands of 10% (either way) on another set of specified securities

Securities and Exchange Board of India (SEBI) SEBI is the

Regulator for the Securities Market in India.

Originally set up by the Government of India in 1988, it acquired statutory form in 1992.

Functions and Responsibilities (SEBI) SEBI has to be responsive to the

needs of three groups, which constitute the market:

the issuers of securities the investors the market intermediaries.

ISSUES

The way to invite share capital from the public is through a PUBLIC ISSUE

Types Of Issues

ISSUES

Public Rights Preferential

IPO FPO

Fresh Issues Offer for sale

How to Start?

Open Demat A/c. Open Trading A/c.

How the Market Work

NSE

Broker

Broker

Public Public