An Overview about Stock Market : An Overview about Stock Market What are Markets? What are shares?

What is a stock exchange? Who is a broker? What is a Demat A/c? Buying and selling of dematerialised securities How to receive income from shares? How much should you invest? How to make investment decisions? How to track your investments? (Portfolio tracker) 1. What are Markets? : 1. What are Markets? A stock market is a market for the trading of company stock/ shares, and derivatives. This includes securities listed on a stock exchange as well as those only traded privately. Market is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc. 1.1 Primary markets:The primary market is that part of the capital markets that deals with the issuance of new securities. 1.2 Secondary markets:The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. In the secondary market, securities are sold by and transferred from one investor or speculator to another. 2. What are shares? : 2. What are shares? A share is one of a finite number of equal portions in the capital of a company, entitling the owner to a proportion of distributed, non-reinvested profits known as dividends and to a portion of the value of the company in case of liquidation. Equity is a share in the ownership of a company. It represents a claim on the companys assets and earnings. As you acquire more stock, your ownership stake in the company increases. The terms share, equity and stock mean the same thing and can be used interchangeably. 3. What is a stock exchange? : 3. What is a stock exchange? A stock exchange, share market or bourse is a corporation or mutual organization which provides facilities for stock brokers and traders, to trade company stocks and other securities. The Bombay Stock Exchange Limited, or BSE has a nation-wide reach with a presence in 417 cities and towns of India. Its index, or market indicator is known as the Sensex. The S&P CNX Nifty, or simply Nifty, is the leading index for large companies on the National Stock Exchange of India. It consists of 50 companies representing 24 sectors of the economy, and representing approximately 47% of the traded value of all stocks on the National Stock Exchange of India (more...) 4. Who is a broker? : 4. Who is a broker? A stockbroker is person who is licensed to trade in shares. Brokers also have direct access to the sharemarket and can act as your agent in share transactions. For this service they charge a fee. They can also offer additional services like advice on shares, debentures, government bonds and listed property trusts and non-listed investment options (cash management trusts, property and equity trusts. (more...) 5. What is a Demat A/c? : 5. What is a Demat A/c? Investors who wish to trade in the market need to have a dematerialized, or demat, account. In India, the government has mandated two entities National Securities Depository, or NSDL, and Central Depository Services (India), or CDSL to be the custodian of dematerialized securities. (more...) 6. Buying and selling of dematerialised securities : 6. Buying and selling of dematerialised securities What is the procedure for selling dematerialized securities? The procedure for selling dematerialized securities is very simple. After you have sold the securities, you would instruct your DP to debit your account with the number of securities sold by you and credit your broker's clearing account. This delivery instruction has to be given to your DP using the delivery instruction slips given to you by your DP at the time of opening the account. (more...) How can I purchase dematerialized securities? For receiving demat securities you may give a one-time standing instruction to your DP. This standing instruction can be given at the time of account opening or later. Alternatively, you may choose to give separate receipt instruction every time some securities are to be received. (more...) 7. How to receive income from shares? : 7. How to receive income from shares? We invest in shares to make money either through a shares capital growth, i.e. the amount by which the share price increases in value over time, or through the dividends it pays to its shareholders. Dividends are payments made by companies to shareholders from their profits. (more...) 8. How much should you invest? : 8. How much should you invest? Asset allocator and other tools Benefits of Investing Early Power of compounding Magic of compounding Risk vs Returns The Need To Diversify Financial Investment Options Financial Investment Options 9. How to make investment decisions? :

9. How to make investment decisions? The stock market has, perhaps, the most exciting investment opportunities for the investor community. At the same time, it could be unnerving and scary. In fact, equity investment has always remained a big challenge, not only for retail but institutional investors, too. In short, investing in equities can be a difficult proposition for retail investors. However, equity must form a part of every investors portfolio. The proportion could vary, depending on the investors age, monetary requirements, risk appetite, etc. : To cope with volatility, it is important to have a disciplined and systematic approach to equity investment. Set your own rules and more importantly, follow them religiously. Indeed, the mantra for successful equity investment is a well thought-out, disciplined investment strategy. A long-term monetary commitment, adherence to discipline in investment and decisions based on company fundamentals are essential ingredients for successful equity investment. (more...) 10. How to track your investments? (Portfolio tracker) : 10. How to track your investments? (Portfolio tracker) The Portfolio Manager tracks and monitors all your investments, cash flow and assets, through live price updates. Investments like equity, mutual funds, assets, cash flows, borrowing and more can all be tracked. Displayed in real time, it is the most up-to-date and precise indicator of your net worth! With the Portfolio Manager, you can not only view your investments at each stage, but can use this record of your holdings to base any future investments decisions. : The Portfolio Manager comes along with some useful tools to gain useful insight of volatile markets. These tools help you to track the trends of your current investments as well as some stocks that have caught your eye. The Portfolio Tracker Track these things. : The Portfolio Tracker Track these things. Transaction History Watch list News Messages Asset Spread Asset Risk Industry Classification Quarterly Data Best Worst Investments Financial Data Consolidated Stocks Consolidated MF's