Stock Market

By Dhruv Agravat(CH1)
 What is Stock Market ??

• The stock market is a financial marketplace where individuals and

institutions buy and sell shares of publicly traded companies.
• These shares represent ownership in a company, and owning them
makes you a shareholder.
• Publicly traded companies list their shares on stock exchanges to
raise capital. These companies are usually divided into smaller units
called shares, and these shares can be bought and sold by investors.
• There are 23 stock exchanges in India like Bombay stock
exchange(BSE), National Stock Exchange(NSE), Calcutta Stock
Exchange , etc among which BSE and NSE are main stock
exchanges.
• SEBI(Securities and Exchange Board of India) monitors and
 Why people invest in Stock Market?
• Wealth Creation: One of the primary reasons people invest in stocks
is to build wealth over time. By investing in companies that have the
potential for growth, individuals aim to increase the value of their
investment portfolio.
• Diversification: Investing in stocks allows individuals to diversify
their portfolios, spreading their risk across different assets and
sectors. Diversification can help reduce the impact of poor
performance in any single investment.
• Overtaking Inflation: Stocks have the potential to outpace inflation.
For example: The average inflation rate in India is 6-7%, average return
in FD is 5-6%, in gold is 7.5-8%, in equity is 10-11%. Hence people
invest in stock market according to their risk taking capability.
 How Stock Market works?

• In very simple words, working of a stock market can be understood as a

simple purchase and sell of a product. Now here product is share of a
company , seller is broker and we are the consumers.
• There are different prices of different stocks. We have to trade these
stocks in between the working hours of stock market. The Indian stock
market working hours are 9:15 a.m. to 3:30 p.m.
• We can trade between this time and observe the trend of market
(bullish, bearish or constant) and invest accordingly .
• There are different methods to invest for different market trends.
• IPO(Initial Public Offering) is a process where a private company
becomes public by selling its stock on a stock exchange.
• Misconception: Stock Market means profit
• Volatility: Stock Market is highly volatile and it demands risk taking
attitude. Stock prices can fluctuate widely in response to economic,
political, and market events. This volatility can be unsettling for
investors.
• Complexity: Understanding the stock market, company financials,
and investment strategies can be complex, especially for beginners,
so it demands a good knowledge of market otherwise without
knowledge we may incur a loss.
• Patience : Some investors are too focused on short-term gains,
which can lead to a lack of patience and a failure to benefit from the
stock market's long-term potential.
• Emotions: Investors may make impulsive decisions based on fear or
 Few Scams in the history of Stock Market
• Harshad Mehta Scam (1992)
• Ketan Parekh Scam(2001)
• NSEL Scam(2013)
And few more……..
 Can we start investing?
• The answer is yes!!! But few things have to be taken care of:
1) Educate yourself enough
2) Determine your risk tolerance and set goals
3) Develop investment strategy
4) Keep researching and updated yourself
5) PATIENCE
 Thank You!!
• Hope this presentation gave you a little knowledge.