Stock Market Overview

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Stock Markets
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What to expect?

• What is Stock?
• How trading happens?
• How to trade in stocks?
• Kinds of Trades
• Basic Terms and terminologies

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What to expect?

• What is Stock?
• How trading happens?
• How to trade in stocks?
• Kinds of Trades
• Basic Terms and terminologies

What not to Expect

• Technical indicators
• Strategies
• Futures and options

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What is a Stock

• Its a means to own a company.
• It is a kind of security.

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Prerequisites for Trading

• We need to have DP (DEPOSITORY PARTICIPANT)
  account.
• We need to have a Trading account.
• And of course money

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How Trading Happens?
Stock Exchange Ex NSE,BSE
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Intra-Day Trading
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Delivery Based Trading
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What is short selling?
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How to select stocks?
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What is fundamental Analysis?

• Analyzing a stock based on the fundaments of the
  country, the sector, and the company
  individually.
• It includes going through balance sheet and
  profit-loss statement of the individual company
  and checking various ratios.

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3 Important Ratios

• EPS PAT Dividend/ No of shares
• PE Present share Price / EPS
• P/BV Present share price / Book value

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What is Technical analysis

• Forecasting the future direction of prices
  through the study of past market data, primarily
  price and volume. In its purest form, technical
  analysis considers only the actual price and
  volume behavior of the market or instrument.

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Basic definitions in Technical analysis

• Support Where one buys
• Resistance Where one sells

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• A Brief into Primary Market
• PE Firms
• QIP, HNI, Retail
• Fixed Price and Book Building Process
• Lower band and Upper Band and Cut off price
• Lot size

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Tips for primary market

• Please Read DRHP
• Read about the promoter's group.
• Understand their business, and compare with others

• ADR
• GDR
• Market Cap
• Dividend
• Buy Back
• Bonus
• Split
• Rights issue
• Record Date
• Non Delivery Period

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What is an Index

• What is NIFTY, SENSEX
• How are they Calculated?

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Tips

• Always follow strict entry and exit points
• Always execute a limit order
• Never buy and sell for full amount in one go,
• Never average a losing trade

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• HAPPY TRADING