V INSTITUTE OF

LEGAL STUDIES
INTRODUCTION TO STOCK
MARKET
KALIRAJ
1ST SEM BBA LLB
INDEX
 Primary and Secondary market
 Stock market and Stock exchange
 SEBI
 Jargons
 How to start investing?
 Social message
 Bibliography
Primary market/Secondary market
STOCK EXCHANGE
 A stock exchange is a marketplace or the
infrastructure that facilitates equity trading.

STOCK MARKET
 On the other hand, a stock market is an
umbrella term representing all of the stocks
that trade in a particular region or
SEBI
 SEBI was officially established by The Government of
India in the year 1988 and given statutory
 powers in 1992 with SEBI Act 1992 being passed by

the Indian Parliament. SEBI has it's

 Headquarter at the business district of Bandra Kurla

Complex in Mumbai.
 SEBI was established as a supervising and regulatory

body to curb
 certain malpractices and to promote the securities

markets in India.
Members of sebi
 1-chairman nominated by union govt of india
 2-2 members from finance ministry
 3-1 member from rbi
 4-5 members appointed

by govt of India
Powers of SEBI
 Inspect the books of accounts and call for periodical returns
from recognized stock exchanges.
 Inspect the books of accounts of financial intermediaries.
 Levy fees and other charges on the intermediaries for
performing its functions.
 Grant license to any person for the purpose of dealing in
certain areas.
 Prosecute and judge directly the violation of certain
provisions of the Companies Act.
 Power to impose monetary penalties
Jargonic terms used in stock
exchange
 Open – The first price at which the stock opens
when market starts in the morning.
 High – The stock price reached at the highest
price level in a day.
 Low – The stock price reached the lowest price
level in day.
 Close – The stock price at which it remains after
the end of market timings or the final price of the
 Volume – Volume is nothing but quantity of
shares.
 Bid – The Buying price is called as Bid price.
 Offer – The selling price is called offer price.
How to start investing?
 Open a Trading and Demat Account. To be able to buy and sell shares, you need a trading account and a
demat account.
 Decide how you want to invest.
 Pick the stocks you want to invest in.
 Keep adding to your portfolio.
 Monitor your portfolioOpen a Trading and Demat Account. To be able to buy and sell shares, you need a
trading account and a demat account. ...
 Decide how you want to invest. ...
 Pick the stocks you want to invest in. ...
 Keep adding to your portfolio. ...
 Monitor your portfolio
 Open a Trading and Demat Account. To be able to buy and sell shares, you need a trading account and a
demat account. ...
 Decide how you want to invest. ...
 Pick the stocks you want to invest in. ...
 Keep adding to your portfolio. ...
 Monitor your portfolio
 VOpen a Trading and Demat Account. To be able to buy and sell shares, you need a trading account and
a demat account. ...
 Decide how you want to invest. ...
 Pick the stocks you want to invest in. ...
 Keep adding to your portfolio. ...
 Monitor your portfolio
bibliography