WHAT IS STOCK

MARKET
DAY-2
 “STOCK MARKET IS A
PLACE WHERE SELLERS
AND BUYERS COME
TOGETHER TO SELL AND
BUY STOCKS”
 TYPES OF STOCK
EXCHANGE
BSE (BOMBAY STOCK EXCHANGE)
It is the oldest and the first stock exchange in Asia. It
was established in 1875. Sensex comprises the top 30
companies actively traded in BSE

NSE (NATIONAL STOCK EXCHANGE)

NSE came into the picture in the year 1992 with Vikram
Limaye as its CEO. Nifty 50 constitutes the top 50
companies that are actively traded in NSE
WHY COMPANIES LIST
THEMSELVES IN STOCK
MARKET?
• RAISE CAPITAL
• EXPAND BUSINESS
• BRAND RECOGNITION
• INCREASE LIQUIDITY AND
SHAREHOLDER VALUE
WHAT IS THE PROCESS OF LISTING
IN STOCK MARKET ?
IPO (INITIAL PUBLIC OFFERING)
• To be listed on stock exchange
company needs to bring an IPO
(Initial Public Offering)
• When minimum 90% of the shares
gets subscribed according to the
mandate of Stock Exchange
Board of India( SEBI), IPO gets
successful.
• IPO gets allotted to subscribers on
first come first serve basis
WHY TO INVEST IN STOCKS IN
COMPARISON WITH OTHER
INVESTMENT ASSETS?
BASIS OF REAL GOLD BANK MUTUAL STOCKS
COMPARISO ESTATE FUNDS
N
EXPECTED 10-12% 7-8% 6-7% 14-17% 18-24%
RETURN

ACTUAL 4-6% 1% 0% 8-11% 12-18%

RETURN

NOTE: - INFLATION RATE OF INDIA FOR THE YEAR 2023 IS 5.68%.

• Better Long-term
Returns BENEFITS
• Dividend Income
OF
• Diversification
Benefits & Liquidity INVESTING
• Ownership IN STOCK
• Hedge Against
Inflation
MARKET
• Transparency
ELIGIBILITY CRITERIA
FOR STOCK MARKET
AGE

DOCUMENTS

DEMAT ACCOUNT
 BASIC TERMINOLOGIES
OF STOCK MARKET
STOCKS SHAREHOLDERS DIVIDEND

Stock is a A shareholder is Dividend refers

share in the any person, to a reward, cash

ownership company, or or otherwise,

of a institution that that a company

company owns shares in a gives to its

company's stock shareholders
 BASIC TERMINOLOGIES
OF STOCK MARKET
MARKET TYPES OF TYPES OF
CAPITALIZATION MARKET ANALYSIS

It is a • BULL • FUNDAMENTAL
company's • BEAR ANALYSIS
total value of • TECHNICAL
its outstanding ANALYSIS
shares of stock
 TYPES OF
STOCKS
PENNY STOCKS RISKY STOCKS STABLE STOCKS GROWTH STOCKS

In the stock market One for which there is Stable value funds Growth stocks are
scenario in India, a either a large remain just that: stocks of companies
stock whose present percentage chance of stable. They don't whose revenue is
market value is below loss of capital or a grow over time, but growing faster than
Rs. 10 is typically relatively high chance they don't lose value average
labelled as a penny of Profit. either
stock
HOW TO INVEST
IN STOCKS
TO SAVE MONEY = BANKS
TO POST PHOTOS = INSTAGRAM
TO INVEST IN STOCKS = DEMAT ACCOUNT
CASE STUDY
1) List down the table which includes all 4 sectors ( Bank, Gold, Real Estate,
Mutual Funds ) and their Company’s Stock Returns in the past 3M, 6M, 1yr,
and difference w.r.t their sectors.
EG:- BANK -> SBI -> 6%
BANK -> SBI STOCK -> 25%
Difference 19%
2) Past 1 yr. Returns of
SENSEX V/S NYSE
NIFTY 50 V/S NASDAG
NIFTY 30 V/S SHANGHAI STOCK EXCHANGE
SENSEX 100 V/S TOKYO STOCK EXCHANGE
THANK
YOU