Stock Market Services

1
Tips Service
By
Wealth Research
2
Is the Stock Market and Share
Market same?

• Stock market and share market essentially mean
  the same thing. Both terms describe an exchange
  in which buyers and sellers of stock or shares
  may trade in a market with high liquidity

Wealth Research
3
Stock Share Tips
Share

• Share is a unit issued by a company at the time
  of raising fund from the market. It is a
  certificate issued to a person who applies for it
  and is given at a value predetermined by the
  company.
• It is the smallest unit of ownership that may be
  bought or sold on or off an exchange.
• Stock
• Stocks in the reference of stock market are th
  total number of shares a person has in one
  company or in many companies.

e
Wealth Research
4
Stock Market

• Stock market is an organised market, where
  securities of govt, semi govt bodies and
  corporate enterprises are brought or sold.
• It is established for the purpose of assisting,
  regulating and controlling business in buying
  selling and dealing in securities.
• In the stock market only those securities listed
  in the stock exchange are transacted.
• Individuals alone can buy and sell securities.

Wealth Research
5
Types of Stock Market

• 1. Primary Market
• The first group of investors to whom a new issue
  of a security is sold.
• The primary market consists of the issuer and the
  first buyers of the issue.
• The primary market can be a time more volatile
  than the secondary market because it is difficult
  to determine the underlying value of new issues.
• 2. Secondary Market
• A market where investors purchase securities or
  assets from other investors, rather than from
  issuing companies themselves.
• The national exchanges - such as the New York
  Stock Exchange and the NASDAQ are secondary
  markets.

Wealth Research
6
Types of Stocks

• BLUE CHIP
• The blue chips carry the highest value.
• Large, established firms with a long record of
  profit growth, dividend payout and a reputation
  for quality management, products and services
  are referred to as Blue Chip companies and their
  stocks are Blue Chip stocks.
• PENNY
• Penny stocks are low-priced, speculative stocks
  that are very risky.
• These stocks are generally issued by the type of
  companies with a short or erratic history of
  revenues and earnings.
• INCOME
• Income stocks are stocks that pay
  higher-than-average dividends ov
• a sustained period.
• These above average dividends tend to be paid by
  large, established companies with stable
  earnings.
• VALUE
• A value stock is a type of stock that is
  currently selling at a low price.
• Companies that have good earnings and growth
  potential but whose
• stock prices do not reflect this are considered
  value companies.
• Investors who buy value stocks believe that these
  stocks are only temporarily out of favour and
  will soon experience great growth.

er
Wealth Research
7
Procedure for listing in Stock Exchanges

• Company decide to go public and raise fund from
  the market and decide upon the Total amount to
  be raised from the Market.
• They get clarification from SEBI.
• This amount is broken down in number of shares by
  deciding the Face Value. As per the norms of the
  SEBI the FV is to be multiple of 5. Normal
  practice is keeping this at Rs10.
• Then the No of shares to be introduced in the
  Market is decided.
• Depending upon the response of the Stock as IPO,
  when it is opened on Secondary Market the price
  is decided.
• The combined collection of the firm from IPO and
  Secondary Market operations becomes the Market
  Capitalisation of the firm, from which a share of
  Profitability is distributed among the share
  holders in the
• WefoarmlotfhDividRendesearch

8
Market Capitalization

• Market capitalization is often called as market
  cap is a measurement of the size of a business
  enterprise.
• It is the total dollar market value of all of a
  company's outstanding shares calculated by
  multiplying a company's shares outstanding by
  the current market price of one share.
• The companies were divided into large-cap, mid-
  cap, and small-cap based on the size of market
  capitalization.
• Large-cap 10 billion100 billion. Mid-cap 1
  billion10 billion.
• Small-cap 100 million1 billion.
• Wealth Research

9
Bombay Stock Exchange
Type Stock Exchange
Location Mumbai, India
Founded 1875
Owner Bombay Stock Exchange Limited
Key people Madhu Kannan (CEO MD)
Currency Indian rupee
No. of listings 5,085
Market Cap US1.8 trillion (Dec 2010)
Volume US231 billion (Nov 2010)
Indexes BSE SENSEX BSE Small Cap BSE Mid-Cap BSE 500
Website www.bseindia.com
10
National Stock Exchange
Type Stock Exchange
Location Mumbai, India
Founded 1992
Owner National Stock Exchange of India Limited
Key people Ravi Narain (MD)
Currency Indian rupee
No. of listings 1,552
Market Cap US1.59 trillion (Dec 2010)
Indexes SP CNX Nifty CNX Nifty Junior SP CNX 500
Website www.nse-india.com
11
Importance Of Indices
The stock market indexes are useful in a number
of ways to stock investors 1. The market
indexes provide an historical perspective of
stock market performance. 1. It provide a
yardstick with which investors can compare the
performance of their individual stock
portfolios. 1. It acts as a forecasting tool.
Studying the historical performance of the stock
market indexes, investors can forecast trends in
the market
Wealth Research
12
Wealth Research