SlideShare ist ein Scribd-Unternehmen logo
1 von 33
How Does
Stock Market
Works ?
GULSHANKUMAR S
192SCMD017
Companies are under the unavoidable
influence of market factors-
1. Price of Materials
2. Changes in Technology
3. Costs of labour
4. Changes in Leadership
5. Larger Factors
STOCK
A stock or share is a financial instrument that represents ownership
in a company or corporation and represents a proportionate claim
on its assets and earnings.
Stock Exchange
Stock Exchange is a marketplace, where securities can be
freely traded between investors with the help of members i.e.
brokers. It is a great platform for purchasing and selling securities,
debt and derivatives. It is a key indicator of financial strength of the
country’s economy. In India, there are two major stock exchanges,
Bombay Stock Exchange, and National stock exchange.
Reason behind listing company’s
shares
When a company establishes itself, it may need access to much
larger amounts of capital than it can get from ongoing operations or
a traditional bank loan. It can do so by selling shares to the public
through an initial public offering (IPO). This changes the status of
the company from a private firm whose shares are held by a few
shareholders to a publicly traded company whose shares will be
held by numerous members of the general public.
How Share Price is set
The prices of shares on a stock market can be set in a number of ways,
but most the most common way is through an auction process where
buyers and sellers place bids and offers to buy or sell. A bid is the price at
which somebody wishes to buy, and an offer (or ask) is the price at which
somebody wishes to sell. When the bid and ask coincide, a trade is
made.
Trend up and Trend down
For every stock transaction, there must be a buyer and a seller. Because
of the immutable laws of supply and demand, if there are more buyers for
a specific stock than there are sellers of it, the stock price will trend up.
Conversely, if there are more sellers of the stock than buyers, the price
will trend down.
Tips for a good long term trading
1. Know what you are buying?
2. Know the level of risk you are undertaking
3. Diversification – a golden rule
The golden rule to manage risk is to diversify your investment in different stocks
Intraday Trading
Commonly intraday trading or day trading is refers to buying and selling of stocks
during the trading hours of a given day.
Let us take an Example. Consider I bought a 100 stocks of Gulshan Polyols for
Rs.150 on Sept 15 2020 and sold at Rs. 175 at the same day before the closing of
the market.
Thus I made Rs.2500 as intraday profit with Rs.25 profit per share.
7 Basic Rules for Trading in Intraday
1.Timing the Market
2. Plan Investment Strategy and Stick with it
3. Exiting the Position
4. Invest Small Amounts that Won’t Pinch
5. Research
6. Close the Open Position
7. Spend Time
Tips for Intraday Trading
1. Select the right stock
2. Know the entry and exit price
3. Always set a stop loss level
4. Close the open position after reaching your target profit
5. Do not challenge the market and don’t be too much greedy.

Weitere ähnliche Inhalte

Was ist angesagt?

Share market report
Share market reportShare market report
Share market reportPurvi Gajera
 
Welcome to stock markets
Welcome to stock marketsWelcome to stock markets
Welcome to stock marketsAbbas Vattoli
 
World`S Top Stock Exchange
World`S Top  Stock ExchangeWorld`S Top  Stock Exchange
World`S Top Stock Exchangeshailjadixit9871
 
The common stock market ppt @ mba finance
The common stock market ppt @ mba financeThe common stock market ppt @ mba finance
The common stock market ppt @ mba financeBabasab Patil
 
Basic Knowledge on Stock Market
Basic Knowledge on Stock MarketBasic Knowledge on Stock Market
Basic Knowledge on Stock MarketCaliberise Ltd
 
An Introduction to Stock market Investment
An Introduction to Stock market InvestmentAn Introduction to Stock market Investment
An Introduction to Stock market InvestmentAshish Nangla
 
Stock Market Crashes
Stock Market CrashesStock Market Crashes
Stock Market CrashesFahim Akhtar
 
Investment Management Mutual Funds and Its Types
Investment Management Mutual Funds and Its TypesInvestment Management Mutual Funds and Its Types
Investment Management Mutual Funds and Its TypesDr. John V. Padua
 
What is Share Market?
What is Share Market?What is Share Market?
What is Share Market?rahultiwary15
 
What is the stock market
What is the stock marketWhat is the stock market
What is the stock marketJohnKatakasi
 
Stock markets presentation
Stock markets presentationStock markets presentation
Stock markets presentationSahil Gupta
 
Indian economic growth and share market
Indian economic growth and share marketIndian economic growth and share market
Indian economic growth and share marketSaloni Pandit
 
Basics of Stock Markets
Basics of Stock MarketsBasics of Stock Markets
Basics of Stock Marketstnd150
 

Was ist angesagt? (20)

Share market report
Share market reportShare market report
Share market report
 
Stock Market
Stock MarketStock Market
Stock Market
 
Welcome to stock markets
Welcome to stock marketsWelcome to stock markets
Welcome to stock markets
 
What are Debt Mutual Funds?
What are Debt Mutual Funds?What are Debt Mutual Funds?
What are Debt Mutual Funds?
 
World`S Top Stock Exchange
World`S Top  Stock ExchangeWorld`S Top  Stock Exchange
World`S Top Stock Exchange
 
The common stock market ppt @ mba finance
The common stock market ppt @ mba financeThe common stock market ppt @ mba finance
The common stock market ppt @ mba finance
 
Basic Knowledge on Stock Market
Basic Knowledge on Stock MarketBasic Knowledge on Stock Market
Basic Knowledge on Stock Market
 
Debt Funds Simplified
Debt Funds SimplifiedDebt Funds Simplified
Debt Funds Simplified
 
An Introduction to Stock market Investment
An Introduction to Stock market InvestmentAn Introduction to Stock market Investment
An Introduction to Stock market Investment
 
Stock Market Crashes
Stock Market CrashesStock Market Crashes
Stock Market Crashes
 
Investment Management Mutual Funds and Its Types
Investment Management Mutual Funds and Its TypesInvestment Management Mutual Funds and Its Types
Investment Management Mutual Funds and Its Types
 
What is Share Market?
What is Share Market?What is Share Market?
What is Share Market?
 
What is the stock market
What is the stock marketWhat is the stock market
What is the stock market
 
Stock markets presentation
Stock markets presentationStock markets presentation
Stock markets presentation
 
Indian economic growth and share market
Indian economic growth and share marketIndian economic growth and share market
Indian economic growth and share market
 
Basics of Investment
Basics of InvestmentBasics of Investment
Basics of Investment
 
Stock market
Stock marketStock market
Stock market
 
Share market ppt.
Share market ppt.Share market ppt.
Share market ppt.
 
Basics of Stock Markets
Basics of Stock MarketsBasics of Stock Markets
Basics of Stock Markets
 
Stock market
Stock marketStock market
Stock market
 

Ähnlich wie How does stock market works

Basic of Stock_Market.pptx
Basic of Stock_Market.pptxBasic of Stock_Market.pptx
Basic of Stock_Market.pptxSTOCKPRO1
 
VR Secondary Market.pptx
VR Secondary Market.pptxVR Secondary Market.pptx
VR Secondary Market.pptxSPJND
 
Stock Exchanges in Pakistan
Stock Exchanges in Pakistan Stock Exchanges in Pakistan
Stock Exchanges in Pakistan Ramzan Mehar
 
Margin Trading in Dhaka Stock Exchange
Margin Trading in Dhaka Stock ExchangeMargin Trading in Dhaka Stock Exchange
Margin Trading in Dhaka Stock ExchangeAzaan Khan
 
Bombay stck exchange
Bombay stck exchangeBombay stck exchange
Bombay stck exchangenoor020202005
 
Pritam Deuskar - What to Look for When Buying Stock.pptx
Pritam Deuskar - What to Look for When Buying Stock.pptxPritam Deuskar - What to Look for When Buying Stock.pptx
Pritam Deuskar - What to Look for When Buying Stock.pptxwealthyvia
 
Stocks GUIDE.pdf
Stocks GUIDE.pdfStocks GUIDE.pdf
Stocks GUIDE.pdfSonamGulzar
 
Definition of a stock
Definition of a stockDefinition of a stock
Definition of a stocklabibmouri
 
Investment management chapter 6 investing in stocks and bonds
Investment management chapter 6 investing in stocks and bondsInvestment management chapter 6 investing in stocks and bonds
Investment management chapter 6 investing in stocks and bondsHeng Leangpheng
 
Share market details
Share market details Share market details
Share market details Mehta Yash
 
Investing in the Stock Market.pdf
Investing in the Stock Market.pdfInvesting in the Stock Market.pdf
Investing in the Stock Market.pdfMuhammad Waqas
 
2-3. Stock market-05-12.01.ppt
2-3. Stock market-05-12.01.ppt2-3. Stock market-05-12.01.ppt
2-3. Stock market-05-12.01.pptMrShoh
 
Understanding the Stock market - guide ..
Understanding the Stock market - guide ..Understanding the Stock market - guide ..
Understanding the Stock market - guide ..ayushigoyal1232
 

Ähnlich wie How does stock market works (20)

Stock market
Stock marketStock market
Stock market
 
STOCK MARKET.pdf
STOCK MARKET.pdfSTOCK MARKET.pdf
STOCK MARKET.pdf
 
Basic of Stock_Market.pptx
Basic of Stock_Market.pptxBasic of Stock_Market.pptx
Basic of Stock_Market.pptx
 
STOCK.pptx
STOCK.pptxSTOCK.pptx
STOCK.pptx
 
VR Secondary Market.pptx
VR Secondary Market.pptxVR Secondary Market.pptx
VR Secondary Market.pptx
 
Stock Exchanges in Pakistan
Stock Exchanges in Pakistan Stock Exchanges in Pakistan
Stock Exchanges in Pakistan
 
Margin Trading in Dhaka Stock Exchange
Margin Trading in Dhaka Stock ExchangeMargin Trading in Dhaka Stock Exchange
Margin Trading in Dhaka Stock Exchange
 
Bombay stck exchange
Bombay stck exchangeBombay stck exchange
Bombay stck exchange
 
Pritam Deuskar - What to Look for When Buying Stock.pptx
Pritam Deuskar - What to Look for When Buying Stock.pptxPritam Deuskar - What to Look for When Buying Stock.pptx
Pritam Deuskar - What to Look for When Buying Stock.pptx
 
Unit #3 student1
Unit #3 student1Unit #3 student1
Unit #3 student1
 
Stocks GUIDE.pdf
Stocks GUIDE.pdfStocks GUIDE.pdf
Stocks GUIDE.pdf
 
Definition of a stock
Definition of a stockDefinition of a stock
Definition of a stock
 
Trends in Indian Capital Market - Dr.K.Karthikeyan
Trends in Indian Capital Market - Dr.K.KarthikeyanTrends in Indian Capital Market - Dr.K.Karthikeyan
Trends in Indian Capital Market - Dr.K.Karthikeyan
 
Investment management chapter 6 investing in stocks and bonds
Investment management chapter 6 investing in stocks and bondsInvestment management chapter 6 investing in stocks and bonds
Investment management chapter 6 investing in stocks and bonds
 
Share market details
Share market details Share market details
Share market details
 
Investing in the Stock Market.pdf
Investing in the Stock Market.pdfInvesting in the Stock Market.pdf
Investing in the Stock Market.pdf
 
security trading.pdf
security trading.pdfsecurity trading.pdf
security trading.pdf
 
2-3. Stock market-05-12.01.ppt
2-3. Stock market-05-12.01.ppt2-3. Stock market-05-12.01.ppt
2-3. Stock market-05-12.01.ppt
 
Understanding the Stock market - guide ..
Understanding the Stock market - guide ..Understanding the Stock market - guide ..
Understanding the Stock market - guide ..
 
Basics of Shares.pdf
Basics of Shares.pdfBasics of Shares.pdf
Basics of Shares.pdf
 

Kürzlich hochgeladen

Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1kcpayne
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperityhemanthkumar470700
 
John Halpern sued for sexual assault.pdf
John Halpern sued for sexual assault.pdfJohn Halpern sued for sexual assault.pdf
John Halpern sued for sexual assault.pdfAmzadHosen3
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with CultureSeta Wicaksana
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesDipal Arora
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Dave Litwiller
 
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service AvailableCall Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service AvailableSeo
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfAdmir Softic
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876dlhescort
 
Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...Roland Driesen
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Centuryrwgiffor
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756dollysharma2066
 
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...allensay1
 
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Sheetaleventcompany
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangaloreamitlee9823
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Serviceritikaroy0888
 
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...lizamodels9
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noidadlhescort
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxAndy Lambert
 
Pharma Works Profile of Karan Communications
Pharma Works Profile of Karan CommunicationsPharma Works Profile of Karan Communications
Pharma Works Profile of Karan Communicationskarancommunications
 

Kürzlich hochgeladen (20)

Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
John Halpern sued for sexual assault.pdf
John Halpern sued for sexual assault.pdfJohn Halpern sued for sexual assault.pdf
John Halpern sued for sexual assault.pdf
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best ServicesMysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
Mysore Call Girls 8617370543 WhatsApp Number 24x7 Best Services
 
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
Enhancing and Restoring Safety & Quality Cultures - Dave Litwiller - May 2024...
 
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service AvailableCall Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
Call Girls Ludhiana Just Call 98765-12871 Top Class Call Girl Service Available
 
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdfDr. Admir Softic_ presentation_Green Club_ENG.pdf
Dr. Admir Softic_ presentation_Green Club_ENG.pdf
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
 
Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
 
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...
Call Girls Service In Old Town Dubai ((0551707352)) Old Town Dubai Call Girl ...
 
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
Chandigarh Escorts Service 📞8868886958📞 Just📲 Call Nihal Chandigarh Call Girl...
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
 
Call Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine ServiceCall Girls In Panjim North Goa 9971646499 Genuine Service
Call Girls In Panjim North Goa 9971646499 Genuine Service
 
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
Call Girls In DLf Gurgaon ➥99902@11544 ( Best price)100% Genuine Escort In 24...
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
 
Monthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptxMonthly Social Media Update April 2024 pptx.pptx
Monthly Social Media Update April 2024 pptx.pptx
 
Pharma Works Profile of Karan Communications
Pharma Works Profile of Karan CommunicationsPharma Works Profile of Karan Communications
Pharma Works Profile of Karan Communications
 

How does stock market works

  • 1. How Does Stock Market Works ? GULSHANKUMAR S 192SCMD017
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21. Companies are under the unavoidable influence of market factors- 1. Price of Materials 2. Changes in Technology 3. Costs of labour 4. Changes in Leadership 5. Larger Factors
  • 22.
  • 23. STOCK A stock or share is a financial instrument that represents ownership in a company or corporation and represents a proportionate claim on its assets and earnings.
  • 24. Stock Exchange Stock Exchange is a marketplace, where securities can be freely traded between investors with the help of members i.e. brokers. It is a great platform for purchasing and selling securities, debt and derivatives. It is a key indicator of financial strength of the country’s economy. In India, there are two major stock exchanges, Bombay Stock Exchange, and National stock exchange.
  • 25. Reason behind listing company’s shares When a company establishes itself, it may need access to much larger amounts of capital than it can get from ongoing operations or a traditional bank loan. It can do so by selling shares to the public through an initial public offering (IPO). This changes the status of the company from a private firm whose shares are held by a few shareholders to a publicly traded company whose shares will be held by numerous members of the general public.
  • 26. How Share Price is set The prices of shares on a stock market can be set in a number of ways, but most the most common way is through an auction process where buyers and sellers place bids and offers to buy or sell. A bid is the price at which somebody wishes to buy, and an offer (or ask) is the price at which somebody wishes to sell. When the bid and ask coincide, a trade is made.
  • 27.
  • 28. Trend up and Trend down For every stock transaction, there must be a buyer and a seller. Because of the immutable laws of supply and demand, if there are more buyers for a specific stock than there are sellers of it, the stock price will trend up. Conversely, if there are more sellers of the stock than buyers, the price will trend down.
  • 29.
  • 30. Tips for a good long term trading 1. Know what you are buying? 2. Know the level of risk you are undertaking 3. Diversification – a golden rule The golden rule to manage risk is to diversify your investment in different stocks
  • 31. Intraday Trading Commonly intraday trading or day trading is refers to buying and selling of stocks during the trading hours of a given day. Let us take an Example. Consider I bought a 100 stocks of Gulshan Polyols for Rs.150 on Sept 15 2020 and sold at Rs. 175 at the same day before the closing of the market. Thus I made Rs.2500 as intraday profit with Rs.25 profit per share.
  • 32. 7 Basic Rules for Trading in Intraday 1.Timing the Market 2. Plan Investment Strategy and Stick with it 3. Exiting the Position 4. Invest Small Amounts that Won’t Pinch 5. Research 6. Close the Open Position 7. Spend Time
  • 33. Tips for Intraday Trading 1. Select the right stock 2. Know the entry and exit price 3. Always set a stop loss level 4. Close the open position after reaching your target profit 5. Do not challenge the market and don’t be too much greedy.