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Govt. M.H. college of home science &science for women, autonomous,Jabalpur M.P :

Govt. M.H. college of home science &science for women, autonomous,Jabalpur M.P A project report On SHARE MARKETING SESSION-2010-12 SUBMITTED IN PARTIAL FULFILE OF THE REQUIRMENTS FOR THE B.SC COMPUTER APPLICATION GUIDE BY:MR.SOMESH DIXIT


ACKNOWLEDGEMENT We affirm here project titled “share marketing” submitted by us in Govt. M.H.College of home science &women, autonomous Jabalpur, M.P. ,affirm to Rani Durgawati vishvavidhalaya university Bhopal for consideration of award of Degree of computer application . embodies our own works , accept guidance &suggestion received during the work which has been duly acknowledged. Submitted by Shubhangi pandey

Indian share market:

Indian share market By--- shubhangi pandey

Share and share market :

Share and share market Share Share is nothing but the Ownership of the company divided into small parts and each part is called as Share or Stock. Share is also called by different names like equity, financial security and so on. A person carrying a share of a company holds that part of ownership in that company. A person holding maximum shares carry maximum ownership and designated like director, chairman etc. Share Market A Share market is the place where buying and selling of shares takes place. Now days due to internet and advanced technology there is no need to present physically in exchanges like NSE and BSE but in fact the buying and selling of shares can be done from anywhere, where there is a computer with internet connection. One should have a demat and trading account, computer and internet connection and he/she can start the share trading or investing from anywhere.

Index in share market :

Index in share market Index consists of group of shares. Index denotes the direction of the entire market. Like when people say market is going up or down then that means Index is going up or down. Index consists of high market capitalization and high liquidity shares. High Market capitalization shares - Companies having highest number of shares and highest price of each share. Market capitalization is calculated by multiplying current share price and number of shares in the market. High Liquidity shares - Shares in the market with high volumes. Two types of Indices Nifty and Sensex Nifty - Nifty consist of a group of 50 shares. Sensex - Sensex consist of a group of 30 shares. Stock exchanges Mainly there are two exchanges in India. NSE (National stock exchange) - Nifty is listed with NSE. BSE (Bombay stock exchange) - Sensex is listed with BSE. NSE and BSE are countries economic barometer. Stock exchanges like NSE and BSE are the places where the trading of shares takes place

Process of share market :

Process of share market First let us understand the Working of a share market To learn about how you can earn on the stock market, one has to understand how it works. When a person want to buy/sell shares in the share market then he has to first place the order with a broker or can do themselves using online trading systems (this will be discussed later). When you place the buy order, the message is transferred to the exchange [either NSE {National Stock Exchange} or BSE {Bombay Stock Exchange}] and the order stays in the queue of exchange's other orders and gets executed if the price of that share comes to that value. Once you get the confirmation of this transaction, the shares purchased, will be sent to your demat account. The shares will be stored in demat account in electronic format. Rolling Settlement Cycle: (RSC) RSC means when you will get your shares in your demat account. In a rolling settlement, each trading day(T) is considered as a trading period and trades executed during the trading day(T) are settled on a T+2 basis i.e. trading day plus two working days. So the conclusion is on forth working day you will get the shares in your demat account.

What is Demat account and why it is required? :

What is Demat account and why it is required? Securities and Exchange Board of India (SEBI) is a board of India appointed by the Government of India in 1992 with its head office at Mumbai. Its one of the function is helping the business in stock exchanges and in other security markets. In another word it is the regulator for stock exchanges. It monitors and regulates both stock exchanges in India. a) Demat (short form of Dematerialization) is the process by which an investor can get shares (also called as physical certificates) converted into electronic form maintained in an account with the Depository Participant (DP). b) DP could be organizations involved in the business of providing financial services like banks, brokers, financial institutions etc. DP’s are like agents of Depository. c) Depository is an organization responsible to maintain investor's securities (securities can be shares or any other form of investments) in the electronic form. In India there are two such organizations called NSDL (National Securities Depository Ltd.) and CDSL (Central Depository Services India Ltd.) d) Investor’s wishing to open Demat account has to go DP and open the account. e) Opening the Demat account is as simple as opening the saving bank account with any bank. As you need bank account to save money, deposit cheques etc, likewise you need to have a demat account to buy and sell stocks in share market and to hold the shares. f) All shares what you own will show in your demat account, so you don't have to possess any physical certificates. All your shares are all held electronically in your demat account. As you buy and sell the shares, accordingly, your shares will get adjusted in your demat account.

Type of Markets:

Type of Markets Primary Market A primary market is a place where companies, government and other corporate bodies sell new shares and other financial products which are also called as financial products. In primary market trading is not allowed. Like any newly listed company sells IPO (initial public offer) then it happens in primary market or whenever any already exiting company goes public then at that time it issues an IPO in primary market. Secondary market A market place where actual share trading (buying and selling ) takes place is called secondary market. Majority of share trading in India happens in top two exchanges called NSE and BSE.

Difference between Trader and Investor :

Difference between Trader and Investor Trader-Intraday Buying and selling of shares based on technical analysis or market trend taking into consideration very short duration like from a single day to couple of days is called trader. Mostly trading is done throughout the day and wit is called as day trading or intraday trading. Trader buys and sells the stock and he is not worried about the company’s performance or how good the company is. Investor-delivery Buying shares after analyzing the fundamentals of the company and holding them for long term like from couple of months to couple of years is called as Investor. Investor buys a company only after analyzing its worth. If the current stock price is available at discount (undervalued) then he buys it for long term prospective.

Mode of trading/invest in share market:

Mode of trading/invest in share market IPO (initial public offer) As the name indicates initial public offer, it is the initial stage of the share in the primary market. After issue is complete IPO becomes share and comes into secondary market and market participant’s start trading or investing on this share. Whenever a new company gets listed on stock exchanges it issues IPO or any existing company (either private limits company or single owner company) want to go public then at that time it issues IPO. Main intention of offering IPO’s - Either to raise capital (money) for company’s expansion plans etc - Or whenever an already existing company goes public. Future Derivatives Future derivative is the product whose value (price) depends in underlying security (assets) Underlying assets are like equity (share/stock), indices (nifty, Jr. Nifty), commodity etc. Future trading can be done on stocks as well as on Indices like IT index, Auto index, Pharma index etc. In simple words - In simple language one future contract is group of stocks (one lot) which has to be bought with certain expiry period and has to be sold (squared off) within that expiry period. Suppose if you buy futures of Wipro of one month expiry then you have to sell it within that one month period.

Mode of trading/invest in share market:

Mode of trading/invest in share market Options An option is a contract that gives the buyer the right, but not the compulsion, to buy or sell an underlying asset at a specific price on or before a certain date. Underlying assets are like equity (share/stock), indices (nifty, Jr. Nifty), commodity etc. Calls and Puts The two types of options are calls and puts: A call gives the holder the right to buy an asset at a certain price within a specific period of time. Calls are similar to having a long position on a stock. Buyers of calls hope that the stock will increase before the option expires. A put gives the holder the right to sell an asset at a certain price within a specific period of time. Puts are very similar to having a short position on a stock. Buyers of puts hope that the price of the stock will fall before the option expires. Note - Currently we are in the process of writing more about options and how to trade on them and very soon we will post them on website. For more information please visit our Options section Mutual funds A registered company with SEBI (securities exchange board of India) does investments in various financial products like share market, government bonds, securities etc on behalf of customers is called mutual fund. There are various mutual fund companies in the market and few are mentioned below, Sundaram , Reliance, SBI, HSBC, Birla and many more. The mutual fund companies collect money from customers and invest on their behalf in various financial products. Investors who don’t want to expose to share market directly or who doesn’t have much knowledge of share market they prefer to invest in equity related mutual funds. Mutual funds consist of fund manager who manages all investments .

Common Stock Basics:

Common Stock Basics . Dividends . Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (i.e. dividends per share or DPS). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield. Dividends may be in the form of cash, stock or property. Most secure and stable companies offer dividends to their stockholders. Their share prices might not move much, but the dividend attempts to make up for this. In the U.S., dividends face double taxation - the amount comes from after-tax income the company generated and the recipients pay taxes on them. As of 2003, cash dividends are taxed at a maximum rate of 15% as long as the stock has been held for at least 60 out of the 120 days beginning 60 days prior to the ex-dividend date. If you have held the stock for a period of less than this the dividend will be taxed at your regular income level.

Common Stock Basics:

Common Stock Basics Dividend Payout Ratio : The percentage of earnings paid to shareholders in dividends. Calculated as: The payout ratio provides an idea of how well earnings support the dividend payments. More mature companies tend to have a higher payout ratio.

Market place:

Market place . NSE -Nifty - Nifty consist of a group of 50 shares. Sensex - Sensex consist of a group of 30 shares. . BSE (Bombay stock exchange) - Sensex is listed with BSE . . Mid-cap stocks : are medium-sized companies, generally with market values of less than $4-$5 billion but more than $1 billion. . Small-cap stocks : are stocks that generally have market values of less than $1 billion but can offer above-average returns.

Animals in the Market:

Animals in the Market The use of  " bull " and " bear " to describe markets comes from the way in which each animal attacks its opponents. That is, a bull thrusts its horns up into the air, and a bear swipes its paws down. These actions are metaphors for the movement of a market: if the trend is up, it is considered a bull market. And if the trend is down, it is considered a bear market. The Bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a person is optimistic and believes that stocks will go up, he or she is called a "bull" and is said to have a "bullish outlook".

Bear Markets:

Bear Markets Bear Markets characterize the attitude of investors who believes that a particular security or market is headed downward. Bears attempt to profit from a decline in prices. Bears are generally pessimistic about the state of a given market. Bearish sentiment can be applied to all types of markets including commodity markets, stock markets and the bond market.

Reading Stock Quotes :

Reading Stock Quotes Columns 1 & 2: 52-Week High and Low - These are the highest and lowest prices at which a stock has traded over the previous 52 weeks (one year). This typically does not include the previous day's trading. Column 3: Company Name & Type of Stock - This column lists the name of the company. If there are no special symbols or letters following the name, it is common stock. Different symbols imply different classes of shares . For example, "pf" means the shares are preferred stock. Column 4: Ticker Symbol - This is the unique alphabetic name which identifies the stock. If you watch financial TV, you have seen the ticker tape move across the screen, quoting the latest prices alongside this symbol. If you are looking for stock quotes online, you always search for a company by the ticker symbol. If you don't know what a particular company's ticker is you can search for it at: http://finance.yahoo.com/.

Reading Stock Quotes :

Reading Stock Quotes Column 5: Dividend Per Share - This indicates the annual dividend payment per share. If this space is blank, the company does not currently pay out dividends. Column 6: Dividend Yield - The percentage return on the dividend. Calculated as annual dividends per share divided by price per share. Column 7: Price/Earnings Ratio - This is calculated by dividing the current stock price by earnings per share from the last four quarters. For more detail on how to interpret this, see our P/E Ratio tutorial. Column 8: Trading Volume - This figure shows the total number of shares traded for the day, listed in hundreds. To get the actual number traded, add "00" to the end of the number listed. Column 9 & 10: Day High and Low - This indicates the price range at which the stock has traded at throughout the day. In other words, these are the maximum and the minimum prices that people have paid for the stock.

Reading Stock Quotes:

Reading Stock Quotes Column 12: Net Change - This is the dollar value change in the stock price from the previous day's closing price. When you hear about a stock being "up for the day," it means the net change was positive. Quotes on the Internet Nowadays, it's far more convenient for most to get stock quotes off the Internet. This method is superior because most sites update throughout the day and give you more information, news, charting, research, etc.

Technical Analysis:

Technical Analysis Technical analysis has become increasingly popular over the past several years, as more and more people believe that the historical performance of a stock is a strong indication of future performance. The use of past performance should come as no surprise. People using fundamental analysis have always looked at the past performance of companies by comparing fiscal data from previous quarters and years to determine future growth. The difference lies in the technical analyst's belief that securities move according to very predictable trends and patterns. These trends continue until something happens to change the trend, and until this change occurs, price levels are predictable There are many instances of investors successfully trading a security using only their knowledge of the security's chart, without even understanding what the company does. However, although technical analysis is a terrific tool, most agree it is much more effective when used in combination with fundamental analysis

Fundamental analysis:

Fundamental analysis Fundamental analysis looks at a share’s market price in light of the company’s underlying business proposition and financial situation. It involves making both quantitative and qualitative judgments about a company. Fundamental analysis can be contrasted with 'technical analysis’, which seeks to make judgments about the performance of a share based solely on its historic price behavior and without reference to the underlying business, the sector it's in, or the economy as a whole. This is done by tracking and charting the companies stock price, volume of shares traded day to day, both on the company itself and also on its competitors . In this way investors hope to build up a picture of future price movements.



Some Basic Stock Investing Rules Every Successful Investor Should Follow:

Some Basic Stock Investing Rules Every Successful Investor Should Follow 1 . Buy low-sell high . As simple as this concept appears to be, the vast majority of investors do the exact opposite. Your ability to consistently buy low and sell high, will determine the success, or failure, of your investments. Your rate of return is determined 100% by when you enter the stock market 2.The stock market is always right . If the market is going down and you are long, the market is right and you are wrong. If the stock market is going up and you are short, the market is right and you are wrong.

Biblography :

Biblography www.nseindia.com www.money.rediff.com www.moneycontrol.com www.wikipedia.org