logging in or signing up Stock Market neha.c1989 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 747 Category: Education License: All Rights Reserved Like it (4) Dislike it (0) Added: October 19, 2010 This Presentation is Public Favorites: 4 Presentation Description No description available. Comments Posting comment... By: jassiji (8 month(s) ago) i want to download it Saving..... Post Reply Close By: neha.c1989 (8 month(s) ago) send me ur email Id on nehachendvankar@gmail.com Saving..... Edit Comment Close By: ZAMIDOZ (15 month(s) ago) good work :)) Saving..... Post Reply Close Saving..... Edit Comment Close By: sptaijal (15 month(s) ago) nice one Saving..... Post Reply Close Saving..... Edit Comment Close By: maheshmisal (16 month(s) ago) plz send me this ppt Saving..... Post Reply Close By: neha.c1989 (16 month(s) ago) plz send me ur email Id Saving..... Edit Comment Close By: tiwariamber (17 month(s) ago) neha will u plz mail me the slides at tiwariamber@yahoo.com Saving..... Post Reply Close Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript Slide 1: Subject : Security Analysis STOCK MARKET Stock Market. : Stock Market. The market in which securities are issued or traded are called as securities market. A Stock Exchange has been defined as “ any body of individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities Markets” Slide 3: A stock market is a platform to buy and sell stocks. The stock quotes are decided by demand and supply. Stock markets used to be market place where a group of buyers and sellers used to gather together and express the willingness to buy/sell a stock at a willing price. Whenever the two match a deal took place. With the advent of IT, now the stock markets have become almost paperless. Now you open a trading account with a broker, transfer the requisite amount and you can start trading in stocks from home. HOW STOCK MARKET WORKS ? Capital market : The market for long term instruments is called as ‘capital market’. Capital market Types of capital market. What is primary and secondary market ? : What is primary and secondary market ? The primary market deals with the issuance of new securities.Methods of issuing securities in the primary market are:• Initial public offering; • Rights issue (for existing companies); • Preferential issue. Secondary market is a market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. Secondary Market : Secondary Market The secondary market deals in securities previously issued. The secondary market enables participants who hold securities to adjust their holdings in response to changes in their assessment of risks and returns. Once the new securities are issued in the primary market they are traded in the stock (secondary) market. Trading in secondary market is governed by central govt. through regulation of exchanges. GROUP OF SHARES WITH CO.’s : GROUP OF SHARES WITH CO.’s Trading Pattern of the Indian Stock Market : Trading Pattern of the Indian Stock Market Indian Stock Exchanges allow trading of securities of only those public limited companies that are listed on the Exchange(s). Guidelines for listing : Guidelines for listing Listing means admission of securities to dealings on a recognized stock exchange. The securities may be of any public limited company, Central or State Government etc. The objectives of listing are mainly to : provide liquidity to securities; mobilize savings for economic development; protect interest of investors by ensuring full disclosures. The Bombay Stock Exchange (BSE) has a dedicated Listing Department to grant approval for listing of securities of companies in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of BSE. Cash trading : Cash trading A method of buying or selling securities by providing the capital needed to fund the transaction without relying on the use of margin. Cash trading is achieved by using a cash account, which is a type of brokerage account that requires the investor to pay for securities within two days from when the purchase is made. How to do cash trading? : How to do cash trading? For cash trading you have to select the stocks that you need to buy and then place the request for the buy through your broker. You have to pay as per the current bid price of the stock. In cash trading you have to pay the full price of the stocks along with the brokerage and the taxes for the transaction while buying the stocks. Once your purchase request is settled at the stock exchange through your broker the stocks are deposited to your DP account and the settlement is done. You are then free to hold the stocks or sell them according to your preference. For selling the stocks in cash trading you have to place the sell request for the stocks that you have in your DP account and you wish to sell. Once the request for sell is processed the sell price excluding the brokerage charge and taxes are deposited to your account and the stocks are deducted from your DP account. Short selling : Short selling SEBI has issued guidelines on short selling. "Short selling" is defined as selling a stock which the seller does not own at the time of trade. All classes of investors, viz., retail and institutional investors, are permitted to short sell. DERIVATIVE : DERIVATIVE A product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index or reference rate ), in a contractual manner. The underlying asset can be equity , FOREX commodity or any other asset. TYPES OF DERIVATIVES FORWARD FUTURES OPTIONS BRIEFING ON DERIVATIVES : BRIEFING ON DERIVATIVES FORWARD : A forward contract is customized contract between two entities, where settlement takes place on a specific date in the future at today’s pre-agreed price. FUTURES : An agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contacts are special types of forward contracts. OPTIONS : Options are of two types – calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not obligation to sell a given quantity of the underlying asset at a given price on or before a given date. DIFFERENCE BETWEENFUTURES & OPTIONS : DIFFERENCE BETWEENFUTURES & OPTIONS In options the buyer enjoys the right and not the obligation, to buy or sell the underlying asset. Limited downside (to the extent of premium paid) for buyer and unlimited upside. For seller (writer) of the option, profits are limited whereas losses can be unlimited. Prices of options are however, affected by a) prices of the underlying asset, b) time remaining for expiry of the contract and c) volatility of the underlying asset. OPTIONS WHAT IS SEBI? : WHAT IS SEBI? SEBI is the supervisory and regulatory authority for the stock and capital markets. It was established in the year 1988 by the government of India and upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. FUNCTIONS OF SEBI. : FUNCTIONS OF SEBI. Control and Regulation of the stock Exchanges and Stock Brokers. Regulation of Merchant Bankers, Mutual Funds and other players in the capital market. Development of stock and capital markets in the right direction. Licensing and authorization of Brokers and Sub-brokers and other intermediaries operating the in the capital markets. To ensure investor protection. Indian Stock Market Trading Hours. : Indian Stock Market Trading Hours. Trading is conducted from Monday to Friday between 9.15 am to 3.30 pm. Incase you fails to do transaction in this period then there is time which BSE has given to buy and sell the shares after market get closed i.e. on post closing. Post closing happen in between 3.40 to 4.00 pm. In BSE and in NSE 3.50 to 4.00pm. But you should buy or sell share at closing rate. Closing rate is computed by BSE on the basis of weighted average price of all trades executed during last 30 minutes. Basic Requirement For Trading. : Basic Requirement For Trading. There are a few basic requirements that need to be in place before an individual can start the process of buying, holding and selling shares. This document is a basic guideline to explain these requirements. The 3 basic things needed for getting started are: Dmat Account A Dmat account is like a Bank Account, with the difference being that instead of cash, a Dmat account holds shares. So, if shares are bought, they are deposited into the buyers Dmat account and if shares are sold, they are reduced accordingly from the Dmat account. Trading Account A Trading account is required if an individual wishes to trade, i.e. buy and sell shares in the stock exchange. The 2 main stock exchanges in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). A Trading account can also be opened with most banks and financial institutions, after filling up the required forms and providing identity and address proofs. Bank account A Bank account is required for carrying out various financial transactions associated with trading of shares. Trading Process : Trading Process Once the Dmat account, Trading account and Bank account are in place, an individual is ready to start trading. Buying shares: When an individual wants to buy a share, he/she logs into the Trading account and specifies the details like the Company name, no. of shares to buy and the price at which to buy. Depending on this information, the required amount from the Bank account is set aside for this trade. When the desired price is reached, this trade is executed and the amount (after adjusting for charges) is debited from the Bank account and the shares are credited into the Dmat account. Slide 23: Selling shares: When an individual wants to sell a share, he/she logs into the Trading account and specifies the details like the Company name, no. of shares to sell and the price at which to sell. Depending on this information, the required no of shares from the Dmat account is set aside for this trade. When the desired price is reached, this trade is executed and the shares are debited from the Dmat account and the amount (after adjusting for charges) is credited to the Bank account. Apart from the charges that are levied by the Bank, the Dmat account service provider and the Trading account service provider, there will be additional government taxes like STT and Service Tax. Settlement : Settlement A T+2 settlement cycle means that the final settlement of transactions done on T, i.e., trade day by exchange of monies and securities between the buyers and sellers respectively takes place on second business day (excluding Saturdays, Sundays, bank and Exchange trading holidays) after the trade day. The transactions in securities of companies which have made arrangements for dematerialization of their securities are settled only in demat mode on T+2 on net basis, i.e., buy and sell positions of a member-broker in the same scrip are netted and the net quantity and value is required to be settled. Conclusion : Conclusion Companies need money to operate. They sell stocks, which are really a part ownership of the company. Since you are now owner, you get all the perks and problems of that company. If the company makes money, you get dividends, which is part of the profit. Other people want it too and want to buy that stock. Now, the stock price goes up, because of the demand.In a recession, people need their money in cash and sell their stocks. The ones getting out on time make out good, the late ones lose their shirts.Without stocks, the companies would have to rely solely on loans and pay interest. Most of the time you will be trading in a company's ordinary shares on the secondary market. You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Stock Market neha.c1989 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 747 Category: Education License: All Rights Reserved Like it (4) Dislike it (0) Added: October 19, 2010 This Presentation is Public Favorites: 4 Presentation Description No description available. Comments Posting comment... By: jassiji (8 month(s) ago) i want to download it Saving..... Post Reply Close By: neha.c1989 (8 month(s) ago) send me ur email Id on nehachendvankar@gmail.com Saving..... Edit Comment Close By: ZAMIDOZ (15 month(s) ago) good work :)) Saving..... Post Reply Close Saving..... Edit Comment Close By: sptaijal (15 month(s) ago) nice one Saving..... Post Reply Close Saving..... Edit Comment Close By: maheshmisal (16 month(s) ago) plz send me this ppt Saving..... Post Reply Close By: neha.c1989 (16 month(s) ago) plz send me ur email Id Saving..... Edit Comment Close By: tiwariamber (17 month(s) ago) neha will u plz mail me the slides at tiwariamber@yahoo.com Saving..... Post Reply Close Saving..... Edit Comment Close loading.... See all Premium member Presentation Transcript Slide 1: Subject : Security Analysis STOCK MARKET Stock Market. : Stock Market. The market in which securities are issued or traded are called as securities market. A Stock Exchange has been defined as “ any body of individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities Markets” Slide 3: A stock market is a platform to buy and sell stocks. The stock quotes are decided by demand and supply. Stock markets used to be market place where a group of buyers and sellers used to gather together and express the willingness to buy/sell a stock at a willing price. Whenever the two match a deal took place. With the advent of IT, now the stock markets have become almost paperless. Now you open a trading account with a broker, transfer the requisite amount and you can start trading in stocks from home. HOW STOCK MARKET WORKS ? Capital market : The market for long term instruments is called as ‘capital market’. Capital market Types of capital market. What is primary and secondary market ? : What is primary and secondary market ? The primary market deals with the issuance of new securities.Methods of issuing securities in the primary market are:• Initial public offering; • Rights issue (for existing companies); • Preferential issue. Secondary market is a market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. Secondary Market : Secondary Market The secondary market deals in securities previously issued. The secondary market enables participants who hold securities to adjust their holdings in response to changes in their assessment of risks and returns. Once the new securities are issued in the primary market they are traded in the stock (secondary) market. Trading in secondary market is governed by central govt. through regulation of exchanges. GROUP OF SHARES WITH CO.’s : GROUP OF SHARES WITH CO.’s Trading Pattern of the Indian Stock Market : Trading Pattern of the Indian Stock Market Indian Stock Exchanges allow trading of securities of only those public limited companies that are listed on the Exchange(s). Guidelines for listing : Guidelines for listing Listing means admission of securities to dealings on a recognized stock exchange. The securities may be of any public limited company, Central or State Government etc. The objectives of listing are mainly to : provide liquidity to securities; mobilize savings for economic development; protect interest of investors by ensuring full disclosures. The Bombay Stock Exchange (BSE) has a dedicated Listing Department to grant approval for listing of securities of companies in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of BSE. Cash trading : Cash trading A method of buying or selling securities by providing the capital needed to fund the transaction without relying on the use of margin. Cash trading is achieved by using a cash account, which is a type of brokerage account that requires the investor to pay for securities within two days from when the purchase is made. How to do cash trading? : How to do cash trading? For cash trading you have to select the stocks that you need to buy and then place the request for the buy through your broker. You have to pay as per the current bid price of the stock. In cash trading you have to pay the full price of the stocks along with the brokerage and the taxes for the transaction while buying the stocks. Once your purchase request is settled at the stock exchange through your broker the stocks are deposited to your DP account and the settlement is done. You are then free to hold the stocks or sell them according to your preference. For selling the stocks in cash trading you have to place the sell request for the stocks that you have in your DP account and you wish to sell. Once the request for sell is processed the sell price excluding the brokerage charge and taxes are deposited to your account and the stocks are deducted from your DP account. Short selling : Short selling SEBI has issued guidelines on short selling. "Short selling" is defined as selling a stock which the seller does not own at the time of trade. All classes of investors, viz., retail and institutional investors, are permitted to short sell. DERIVATIVE : DERIVATIVE A product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index or reference rate ), in a contractual manner. The underlying asset can be equity , FOREX commodity or any other asset. TYPES OF DERIVATIVES FORWARD FUTURES OPTIONS BRIEFING ON DERIVATIVES : BRIEFING ON DERIVATIVES FORWARD : A forward contract is customized contract between two entities, where settlement takes place on a specific date in the future at today’s pre-agreed price. FUTURES : An agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contacts are special types of forward contracts. OPTIONS : Options are of two types – calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not obligation to sell a given quantity of the underlying asset at a given price on or before a given date. DIFFERENCE BETWEENFUTURES & OPTIONS : DIFFERENCE BETWEENFUTURES & OPTIONS In options the buyer enjoys the right and not the obligation, to buy or sell the underlying asset. Limited downside (to the extent of premium paid) for buyer and unlimited upside. For seller (writer) of the option, profits are limited whereas losses can be unlimited. Prices of options are however, affected by a) prices of the underlying asset, b) time remaining for expiry of the contract and c) volatility of the underlying asset. OPTIONS WHAT IS SEBI? : WHAT IS SEBI? SEBI is the supervisory and regulatory authority for the stock and capital markets. It was established in the year 1988 by the government of India and upgraded as a fully autonomous body (a statutory Board) in the year 1992 with the passing of the Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. FUNCTIONS OF SEBI. : FUNCTIONS OF SEBI. Control and Regulation of the stock Exchanges and Stock Brokers. Regulation of Merchant Bankers, Mutual Funds and other players in the capital market. Development of stock and capital markets in the right direction. Licensing and authorization of Brokers and Sub-brokers and other intermediaries operating the in the capital markets. To ensure investor protection. Indian Stock Market Trading Hours. : Indian Stock Market Trading Hours. Trading is conducted from Monday to Friday between 9.15 am to 3.30 pm. Incase you fails to do transaction in this period then there is time which BSE has given to buy and sell the shares after market get closed i.e. on post closing. Post closing happen in between 3.40 to 4.00 pm. In BSE and in NSE 3.50 to 4.00pm. But you should buy or sell share at closing rate. Closing rate is computed by BSE on the basis of weighted average price of all trades executed during last 30 minutes. Basic Requirement For Trading. : Basic Requirement For Trading. There are a few basic requirements that need to be in place before an individual can start the process of buying, holding and selling shares. This document is a basic guideline to explain these requirements. The 3 basic things needed for getting started are: Dmat Account A Dmat account is like a Bank Account, with the difference being that instead of cash, a Dmat account holds shares. So, if shares are bought, they are deposited into the buyers Dmat account and if shares are sold, they are reduced accordingly from the Dmat account. Trading Account A Trading account is required if an individual wishes to trade, i.e. buy and sell shares in the stock exchange. The 2 main stock exchanges in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). A Trading account can also be opened with most banks and financial institutions, after filling up the required forms and providing identity and address proofs. Bank account A Bank account is required for carrying out various financial transactions associated with trading of shares. Trading Process : Trading Process Once the Dmat account, Trading account and Bank account are in place, an individual is ready to start trading. Buying shares: When an individual wants to buy a share, he/she logs into the Trading account and specifies the details like the Company name, no. of shares to buy and the price at which to buy. Depending on this information, the required amount from the Bank account is set aside for this trade. When the desired price is reached, this trade is executed and the amount (after adjusting for charges) is debited from the Bank account and the shares are credited into the Dmat account. Slide 23: Selling shares: When an individual wants to sell a share, he/she logs into the Trading account and specifies the details like the Company name, no. of shares to sell and the price at which to sell. Depending on this information, the required no of shares from the Dmat account is set aside for this trade. When the desired price is reached, this trade is executed and the shares are debited from the Dmat account and the amount (after adjusting for charges) is credited to the Bank account. Apart from the charges that are levied by the Bank, the Dmat account service provider and the Trading account service provider, there will be additional government taxes like STT and Service Tax. Settlement : Settlement A T+2 settlement cycle means that the final settlement of transactions done on T, i.e., trade day by exchange of monies and securities between the buyers and sellers respectively takes place on second business day (excluding Saturdays, Sundays, bank and Exchange trading holidays) after the trade day. The transactions in securities of companies which have made arrangements for dematerialization of their securities are settled only in demat mode on T+2 on net basis, i.e., buy and sell positions of a member-broker in the same scrip are netted and the net quantity and value is required to be settled. Conclusion : Conclusion Companies need money to operate. They sell stocks, which are really a part ownership of the company. Since you are now owner, you get all the perks and problems of that company. If the company makes money, you get dividends, which is part of the profit. Other people want it too and want to buy that stock. Now, the stock price goes up, because of the demand.In a recession, people need their money in cash and sell their stocks. The ones getting out on time make out good, the late ones lose their shirts.Without stocks, the companies would have to rely solely on loans and pay interest. Most of the time you will be trading in a company's ordinary shares on the secondary market.