How to Invest In Stock Market - PowerPoint PPT Presentation

About This Presentation
Title:

How to Invest In Stock Market

Description:

A stock market is Equivalent to a share market. The key difference is that a stock market helps you trade financial instruments like bonds, derivatives mutual funds, as well as shares of companies. A share market only allows trading of shares. – PowerPoint PPT presentation

Number of Views:34
Slides: 16
Provided by: aniksingh

less

Transcript and Presenter's Notes

Title: How to Invest In Stock Market


1
Research Via Financial Services
2
About us
  • Research via is a leading financial services
    provider with presence in Indian and other global
    capital markets. With its full fledged research
    operations, Research via has proven itself as
    Investment Advisory Company that produces and
    delivers high accuracy tips and recommendations
    for
  • Equity Tips
  • Derivatives Tips Futures and Options
  • Commodity Tips MCX, NCDEX and COMEX
  • Forex Tips Domestic and International

3
Our Vision
  • Research via believes that its existence depends
    upon its product. Keeping that in mind, Research
    via dedicates more than 70 of its revenues
    toward its research, product and services.
    Research via stresses on maintaining a high
    standard in its research practice, its research
    team and its research systems and makes
    investments in constant system up-gradations,
    training and development and top of the line
    software subscriptions. Research via focuses on
    providing only the BEST to our precious clients
    and that reflects in our track sheets.

4
Our Products
  • Equity Trading Tips
  • Base Metal Tips
  • MCX Gold Tips
  • Free mcx tips
  • Nifty tips
  • Commodity Tips
  • Nifty options tips
  • Crude oil tips

5
Reports from Research Corner
  • It is mandatory to know for a trader the exact
    coverage depth of the market in which he is
    trading.
  • That is why Research via brings to you daily
    weekly the market report directly from the
    Research Counter for
  • Equity
  • Commodity
  • Forex

6
Share Market Basics
7
Lets Start With Share Market
  • A stock market is Equivalent to a share market.
    The key difference is that a stock market helps
    you trade financial instruments like bonds,
    derivatives mutual funds, as well as shares of
    companies. A share market only allows trading of
    shares.
  • The Main factor is the stock exchange the basic
    platform that provides the facilities used to
    trade company stocks and another securities. A
    stock may be bought or sold only if it is listed
    on an exchange. Thus, it is the meeting place of
    the stock buyers and sellers. Domestic premier
    stock exchanges are the Bombay Stock Exchange and
    the National Stock Exchange.

8
Diagram
9
Primary Market
  • This where a company gets certified to issue a
    certain amount of shares and raise money. This is
    also called getting listed in a stock exchange.
  • A company enters basic markets to raise capital.
    If the company is selling shares for the first
    time, it is called an Initial Public Offering.
    The company thus becomes public.

10
Secondary Market
  • Once fresh securities have been sold in the
    primary market, these shares are traded in the
    secondary market. This is to offer a chance for
    trader to exit an investment and sell the shares.
    Secondary market transactions are referred to
    trades where 1 investor buys shares from another
    investor at the prevailing market price or at
    whatever price the 2 parties agree upon.
  • Normally, investors conduct such transactions
    using an intermediary such as a broker, who
    facilitates the process.

11
HOW TO BUY SHARES?
  • First, you need to open a trading account and a
    demat account. This trading and demat account
    will be linked to your savings account to
    facilitate smooth transfer of money and shares.

12
WHAT DOES THE SEBI DO?
  • Stock markets are risky. Hence, they need to be
    coordinated to protect investors. The Security
    and Exchange Board of India (SEBI) is mandated to
    oversee the inferior and primary markets in India
    since 1988 when the Government of India
    entrenched it as the regulatory body of stock
    markets. Within a short period of time, SEBI
    became an autonomous body through the SEBI Act of
    1992.
  • SEBI has the liability of both development and
    regulation of the market. It regularly comes out
    with inclusive regulatory measures aimed at
    ensuring that end investors benefit from safe and
    transparent dealings in securities.
  • Its basic objectives are
  • Regulating the stock market
  • Promoting the development of the stock market
  • Protecting the interests of investors in stocks

13
WHAT ARE BULL AND BEAR MARKETS?
  • Markets are often described as bear or bull
    markets. These names have been derived from the
    manner in which the animals attack their
    adversary. A bull thrusts its horns up into the
    air, and a bear swipes its paws down. These
    actions are metaphors for the migration of a
    market if stock prices trend upwards, it is
    considered a bull market if the trend is
    descending, it is considered a bear market.
  • The supply and demand for securities largely
    determine whether the market is in the bull or
    bear phase. Forces like investor psychology,
    government involvement in the economy and changes
    in economic movement also drive the market up or
    down. These combine to make investors bid higher
    or lower prices for stocks.

14
WHAT ARE TOP-DOWN, BOTTOM-UP APPROACHES?
  • The top-down approach 1st takes into
    consideration the macro-economy. You understand
    the trends and outlook for the final economy.
    Using this, you choose a one or more industries
    that are expected to do well in the near future.
    This is because every industry reacts to whole
    economic conditions like inflation, interest
    rates, consumer demand and so on, in a different
    way. Select 1 among the industries after in-depth
    analysis. Next, you understand the workings of
    the industry, the players and competitors and
    another factors that affect the sector. Based on
    this, you select one of the companies in the
    corporation.
  • The bottom-up approach is just the opposite. You
    do not look at the economy or select an industry
    1st, but concentrate on company fundamentals. You
    first understand what your priorities are high
    growth or steady income by high dividends. Using
    appropriate ratios like the Price-to-Earnings
    ratio or the Dividend-yield, you select a group
    of stocks. Next, analyze each of these companies
    find answers for questions like what factors
    drive profits? Is the company management
    effective? Is the company heavily indebted? What
    is the future outlook? And so on. Based on the
    outcome, select the company that best fits your
    requirements.

15
Thank You!!!
Write a Comment
User Comments (0)
About PowerShow.com