Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Shweta Iyer 28
Vedangi Bahrot 05
Vruddhi Mehta 53
Nibha Agarwal 02
Varun Nair 61
Nitin Parmar 74
Avani Gosalia 25
Types of Financial market in India
• Capital Market
• Money Market
• Derivatives market
• Commodity Market
• Insurance Market
• No use of Technology
• Margin Lending
Capital Market v/s Money Market
Extends beyond one year Upto One year or less.
SEBI
•Brokers
•Investment Bankers
Primary Secondary •Stock Exchanges
•Underwriters
• Equity
• Giltz securities
• Derivatives
• Hedge funds
• FCCB
What is a Share or a Stock?
• Registrar
• Issue of Prospectus
• Price Band
• Allotment
• Listing
Book building process
• Appointment of book runner i.e. merchant banker
• Preparation and submission of draft documents to SEBI and
obtaining of an acknowledgement card.
• A specified price band (range) is to be determined by issuer and
book runner
• Different price levels are invited from syndicate members .Adv.
Should mention opening and closing dates for the bids
• Issuer arrives at a final cut-off rate & final allocation in
consultation with book runner and lead manager
• Issuer and book runner may impose restrictions on number of
shares that can be allotted to each client
• Final prospectus is filed with the (ROC) along with procurement
agreement
• Placement portion opens for subscription
• Placement portion closes a day before the opening of public
issue portion
The role of the stock
exchange
WEIGHTAGE
• IT OIL&GAS
• BANKEX CD
• FMCG
• PSU
• METAL
• REALTY
• CG
Cash Market v/s Future Market
• Risk Involved is less • High Risk Involved
• Has no Expiry • Has an definite Expiry
• Can buy any number of • Need to buy in fixed Lot sizes
Shares • Need to pay margin amount for
• Need to pay full amount of purchase
purchase • Can trade all Instruments of
• Can trade only in Equity financial market
shares • Option available here is less
• Can trade in more than 5000 than 500 shares
listed shares • Can buy or sell Index also
• Cannot buy or sell Index Eg-Nifty50 futures, Bankex
Eg-Reliance, Tata Steel, Bharti futures, Reliance futures
Airtel, etc
Basic Terminologies Before
Trading
• Capital
• Trading Account
• Depository Participant
• Broker & Sub-Broker
• Brokerage
• Script Code
• Script Name
• Intra-day & Delivery
• Bid Quantity & Bid Price
• Ask Quantity & Ask Price
• Block Deal
• Short Trade
• ADR & GDR
• Open, High, Low & Close Price
• Last Traded Price & Quantity
• Stop Loss
• Hedge Funds
• P/E Ratio
• E.P.S.
• Top Line
• Bottom Line
• 52-week High/Low
• Circuit Limit
• Nifty Premium & Discount
• Futures Contract
• Options Contract
How to Start Trading?
• Results
• FDI
• Political Interference
• Change in Policy
• Change in Management
Derivative Contract
• A derivative is a financial instrument that is derived from some
other asset, index, event, value or condition.
• Lack of Liquidity
• Telecommunication – 49%
• Power – 100%
• Power
• Banking
• Real-estate
• Construction
Sensex from 2008-2009
State of Capital Market
• Foreign Capital coming back to India
• Develop a winning strategy and trade often. A small daily profit can
provide a large annual return
Invest 3k in Mutual
2k in another Fund or FD’s
sector
Dow Theory
• The market has three movements
• Trends exist until definitive signals prove that they have ended
Thank You