Stock Market course by teacherdadaplus

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WHAT IS A STOCK MARKET?
The stock market, also known as the equity
market, is a marketplace where company stocks
(shares) and derivatives are traded at agreed
prices. As of early 2024, the global stock
market is estimated to be valued at approximately
120 trillion USD.
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WHAT IS A SHARE/STOCK/EQUITY?

• Shares represent fractional ownership in a
  business, giving shareholders equity
  participation.
• As of 2024, most stock certificates are
  dematerialized, meaning they exist only in
  electronic form.
• Ownership of shares is documented by a legal
  document that specifies the amount of shares
  owned by the shareholder, and other specifics of
  the shares, such as the par value or the class of
  the shares (if any).
• These days these stock certificates have been
  dematerialized.
• no physical document!

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WHO IS A SHAREHOLDER?

• A shareholder (or stockholder) is an individual
  or entity that owns one or more shares of a
  company. Shareholders are granted privileges like
  voting rights and a share in the company's
  income. Shareholder participation has increased
  significantly due to the rise of retail
  investors.
• Shareholders are granted privileges depending on
  the class of stock, including the right to vote
  on matters such as elections to the board of
  directors, the right to share in distributions of
  the company's income, the right to purchase new
  shares issued by the company, and the right to a
  company's assets during a liquidation of the
  company.
• Shareholders vary from individual stock investors
  to large hedge fund traders.

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WHY DOES A COMPANY ISSUE SHARES TO THE PUBLIC?

• Companies issue shares to raise capital for new
  projects, reduce promoter holdings, or finance
  expansion without incurring debt. Many companies
  have turned to equity financing to support growth
  in a competitive market environment.
• The promoters may simply wish to reduce their
  holding, freeing up capital for their own private
  use.
• Once a company is listed, it will be able to
  issue further shares via a rights issue, thereby
  again providing itself with capital for expansion
  without incurring any debt.
• Financing a company through the sale of stock in
  a company is known as equity financing.

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TRADING

• Trading involves the buying and selling of shares
  on stock exchanges through registered brokers.
  Algorithmic trading and high-frequency trading
  (HFT) have become more prevalent, accounting for
  a significant portion of trading volumes
  globally.
• Investors usually buy and sell shares on the
  exchanges through a stock brokers registered with
  the exchange.
• A company may list its shares on an exchange by
  meeting and maintaining the listing requirements
  of a particular stock exchange.

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SHARE PRICE DETERMINATION

• Share prices are determined by supply and demand
  dynamics. Prices are heavily influenced by
  market sentiment, economic indicators, and
  geopolitical events. The rise of retail investors
  and social media trends also play a significant
  role in price movements.
• Actual trades are based on an auction market
  model where a potential buyer bids a specific
  price for a stock and a potential seller asks a
  specific price for the stock. (Buying or selling
  at market means you will accept any ask price or
  bid price for the stock, respectively.) When the
  bid and ask prices match, a sale takes place.

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LISTING REQUIREMENTS

• The set of conditions imposed by a given stock
  exchange upon companies that want to be listed on
  that exchange.
• Examples include minimum number of shares
  outstanding, minimum market capitalization, and
  minimum annual income.
• Stock exchanges have specific listing
  requirements, such as minimum market
  capitalization and public float. For instance,
  The New York Stock Exchange requires a minimum
  market capitalization of 40 million, while the
  London Stock Exchange requires 700,000. These
  requirements vary by exchange.

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WAYS OF BUYING AND SELLING SHARES
Through a stock broker They arrange the transfer
of stock from a seller to a buyer. Both the buyer
and the seller of the share pay commission known
as brokerage to the broker. Directly from the
company
If at least one share is owned, most companies
will allow the purchase of shares directly from
the company through their investor relations
departments. A direct public offering is an
initial public offering(IPO) in which the stock
is purchased directly from the company, usually
without the aid of brokers.
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TECHNICAL ANALYSIS
Technical analysis involves using historical
price data and volume to predict future price
movements. In Advanced tools like Bollinger Bands
and AI-driven algorithms are widely used by
traders to analyze market trends.
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TECHNICAL ANALYSIS
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READY TO MASTER THE STOCK MARKET?
If you want to learn about the stock market in
depth, join our course on TeacherDadaPlus.com
THANK YOU!!!