Welcome to Money

Game
Stock Market
 Stock Market

Shares Mutual Funds Commodities

 An Overview about Stock Market
 What are Markets?
 What are shares?
 What is a stock exchange?
 Who is a broker?
 What is a Demat A/c?
 Buying and selling of dema
terialised securities
 How to receive income fro
m shares?
 How much should you inve
st?
 How to make investment d
ecisions?
 How to track your investm
ents? (Portfolio tracker)
1. What are Markets?
 A stock market is a market for the trading of
company stock/ shares, and derivatives. This
includes securities listed on a stock exchange as
well as those only traded privately. Market is a place
where buyers and sellers of securities can enter into
transactions to purchase and sell shares, bonds,
debentures etc.

 1.1 Primary markets:

The primary market is that part of the capital markets
that deals with the issuance of new securities.

 1.2 Secondary markets:

The secondary market is the financial market for
trading of securities that have already been issued in
an initial private or public offering. In the secondary
market, securities are sold by and transferred from
one investor or speculator to another.
 2. What are shares?
 A share is one of a finite number of equal portions
in the capital of a company, entitling the owner to a
proportion of distributed, non-reinvested profits
known as dividends and to a portion of the value of
the company in case of liquidation. Equity is a share
in the ownership of a company. It represents a
claim on the company’s assets and earnings. As
you acquire more stock, your ownership stake in the
company increases. The terms share, equity and
stock mean the same thing and can be used
interchangeably.
3. What is a stock exchange?
 A stock exchange, share market or bourse is a
corporation or mutual organization which provides
facilities for stock brokers and traders, to trade
company stocks and other securities.
The Bombay Stock Exchange Limited, or BSE has a
nation-wide reach with a presence in 417 cities and
towns of India. Its index, or market indicator is
known as the Sensex.
The S&P CNX Nifty, or simply Nifty, is the leading
index for large companies on the National Stock
Exchange of India. It consists of 50 companies
representing 24 sectors of the economy, and
representing approximately 47% of the traded value
of all stocks on the National Stock Exchange of India
(more...)
4. Who is a broker?

 A stockbroker is person who is licensed to trade in

shares. Brokers also have direct access to the
sharemarket and can act as your agent in share
transactions. For this service they charge a fee.
They can also offer additional services like advice
on shares, debentures, government bonds and
listed property trusts and non-listed investment
options (cash management trusts, property and
equity trusts. (more...)
5. What is a Demat A/c?

 Investors who wish to trade in the market

need to have a dematerialized, or demat,
account. In India, the government has
mandated two entities –National Securities
Depository, or NSDL, and Central
Depository Services (India), or CDSL – to
be the custodian of dematerialized
securities. (more...)
6. Buying and selling of
dematerialised securities
 What is the procedure for selling dematerialized
securities?
The procedure for selling dematerialized securities is very
simple. After you have sold the securities, you would instruct
your DP to debit your account with the number of securities
sold by you and credit your broker's clearing account. This
delivery instruction has to be given to your DP using the
delivery instruction slips given to you by your DP at the time
of opening the account. (more...)
 How can I purchase dematerialized securities?
For receiving demat securities you may give a one-time
standing instruction to your DP. This standing instruction can
be given at the time of account opening or later. Alternatively,
you may choose to give separate receipt instruction every
time some securities are to be received. (more...)
7. How to receive income from
shares?

 We invest in shares to make money –

either through a share’s capital growth, i.e.
the amount by which the share price
increases in value over time, or through the
dividends it pays to its shareholders.
Dividends are payments made by
companies to shareholders from their
profits. (more...)
8. How much should you invest?
• Asset allocator and • Benefits of Investing Ea
rly
other tools…
• Power of compounding
• Magic of compounding
•
• Risk vs Returns
• The Need To Diversify
• Financial Investment O
ptions

• Financial Investment O
ptions
9. How to make investment
decisions?
 The stock market has, perhaps, the most exciting
investment opportunities for the investor
community. At the same time, it could be unnerving
and scary. In fact, equity investment has always
remained a big challenge, not only for retail but
institutional investors, too.

 In short, investing in equities can be a difficult

proposition for retail investors. However, equity
must form a part of every investor’s portfolio. The
proportion could vary, depending on the investor’s
age, monetary requirements, risk appetite, etc.
 To cope with volatility, it is important to have a
disciplined and systematic approach to equity
investment. Set your own rules and more
importantly, follow them religiously. Indeed, the
mantra for successful equity investment is a well
thought-out, disciplined investment strategy.

 A long-term monetary commitment, adherence to

discipline in investment and decisions based on
company fundamentals are essential ingredients for
successful equity investment. (more...)
10. How to track your
investments? (Portfolio tracker)

 The Portfolio Manager tracks and monitors all your

investments, cash flow and assets, through live
price updates. Investments like equity, mutual
funds, assets, cash flows, borrowing and more can
all be tracked. Displayed in real time, it is the most
up-to-date and precise indicator of your net worth!
With the Portfolio Manager, you can not only view
your investments at each stage, but can use this
record of your holdings to base any future
investments decisions.
 The Portfolio Manager comes along with some
useful tools to gain useful insight of volatile markets.
These tools help you to track the trends of your
current investments as well as some stocks that
have caught your eye.
The Portfolio Tracker Track
these things.
 Transaction History
 Watch list
 News
 Messages
 Asset Spread
 Asset Risk
 Industry Classification
 Quarterly Data
 Best Worst
Investments
 Financial Data
 Consolidated Stocks
 Consolidated MF's
The End………