Investing & Trading

STOCK MARKET
What is a Stock?
 Stock is a share in the ownership of a
company.
It represents a claim on the company's assets
and earnings

 Whether you say shares, equity or stock, it all

means the same thing.
What is a Stock Market?

 A stock market is a market for the trading of

company stock (shares) and derivatives at
an agreed price.
 Place where business of buying and selling
stock takes place
 As of 2017 the size of the world stock
market was about US$79.225 Trillion. By
country USA being the biggest (34%),
followed by Japan (6%) and UK (6%).
Why Companies Issue Stock?

 When a company would like to grow, it issues

stocks to raise funds and pay for ongoing
business activities.
 It is popular because:
 The company does not have to repay the money.
 Paying dividends is optional
 Dividends are distributions of earnings paid to
stockholders
Stock exchange in India

Sensex & Nifty

 As of recent data India ranks seventh in the
world with market cap of US$2.1 trillion.
 Two major Stock Exchange are:

1. The Bombay Stock Exchange (BSE)

2. National Stock Exchange of India Ltd (NSE)
Bombay Stock Exchange (Sensex)

 Sensex comprises 30 of the largest

and most actively-traded Companies
on the BSE, providing an accurate
gauge of India's economy.
 Initially compiled in 1986, the Sensex
is the oldest stock index in India.
Analysts and investors use the Sensex
to observe the overall growth,
development of particular industries,
and booms and busts of the Indian
economy.
 The BSE Sensex has been on a growth
curve since India opened up its
economy in 1991. Most of its growth
has occurred in the 21st century.
National Stock Exchange
(NIFTY)
 It is the equity benchmark
index in India introduced
by National Stock
Exchange in 1991.
 The term 'Nifty' is derived
from the combination of
two words ‘National and
Fifty’ - as it consist of 50
actively traded stocks
accounting for 12 sectors
of the economy.
Market Timings

Trading on the equities segment takes place on all days of

the week (except Saturdays and Sundays and holidays
declared by the exchange in advance)

The market timings of the equities segment are:

Normal market open : 09:00 am

Normal market close : 15:30 pm
How the Market Work
NSE

Broker
Broker

Public Public
 Trading

Risk Analysis
Management

Psychology