#Stock-Market  #Basic-of-SM  #Finance 

Investment in stock market(SM)

Myth

  • SM is Gambling
  • SM is too Risky

Truth

  • Major investment scheme returns from 2000 to 2019 in CAGR
  * GOLD  : 11% - 12%% CAGR
  * NIFTY : 14% - 15%  CAGR (Divident included)
  * FD    : 5%  - 6%   CAGR (Post Tax)
  • In Long-term
    • NIFTY, SENSEX, or any Equity investment gives better returns
    • Even it’s not risky
  • In Short-run
    • Hick-up will be present
    • Maybe risky(in the short-run)
  • Study required
    • Financial and Technical study is required
      • So it’s not a Gambling
    • Else may turn into gambling

Note:

  • To get good return you can invest in Equity through
    • Mutual funds(MF)
    • Stock (S)

Positive for SM

  • Stable Govt formation (Like in 2014)
  • Favourable govt policies
    • Eg: Open for FDI, FII

Negative for SM

  • 2008 Recession
  • Unfavourable govt policies
    • Eg: Increase in Comporate Tax

List of Successful Billionaire, India Investor

Name Qualification Founders of
Rakesh Jhunjunwala CA –
Ramdeo Aagarwal CA Motilal Oswal Group Stock Broker
Parag Parekh M. Com Parag Parekh Securities Stock Broker
Vijay Kedia B. Com –
Porinju Veliyath Law Work for Parag Parekh Securities and then created on Ventures
Ramesh Damani HR Specialisation –
RadhaKrishna Damani Undergraduate DMART

Start with Stock Market

Types of Securities Market

  1. Primary Market
    • Also known as New Issue Market
    • They come with IPO(Initial public offer)
    • Transaction between Issuer company and Investor
  2. Secondary Market
    • Also known as Stock Exchange
    • Transaction between Investor and Investor

How to enter in Secondary Market?

  • Things Required for Trading
    • DeMAT Account
      • Digital place to keep/stored Shares
    • Trading Account
      • Where we make trading(buy and sale)
    • Saving Account

Combinations Type of account

  • 1 in 1 (May be worst combination)
    • All three are in 3 different place
  • 2 in 1 (Best option)
    • Demat and Trading in 1 place
    • Saving in other place
    • Eg: Zerodha, Upstock
  • 3 in 1 (Mostly Expensive)
    • All 3 account are in one place
    • Eg:
      • HDFC bank - Savving account
      • HDFC Securities - Demat and Trading

You can have any number of above accounts

Documents Required

  • PAN Card
  • Aadhar Card

Stock Exchange(SE)

  • The stock exchange provides a platform for investors to BUY and SELL securities from each other
  • Trading Options provided by SE
    • Stocks
    • Feature & Options
    • Mutual Fund ETF
    • Currency
    • Bonds, Debts
  • Functions
    • Liquidity
      • Buyer and seller at same platform
    • Price discovery
      • Based on demand
    • Transparency
      • Regulated by SEBI
      • Need to follow norms
    • Transaction Safety
      • Clearing House
      • Depositries

How does SE make Money?

  • SE income relies on:
    • Company listing fee
    • Trading fee
    • Broker registration fee etc…

India SE Journey

  • 1875 – Bombay SE
  • 1894 – Ahmedabad SE
  • 1908 – Calcutta SE
  • 1920 – Madras SE etc..
  • 1992 – NSE

Major SE

  • NSE – 1992
    • National Stock Exchange
    • Listed around – 1.5K+ companies
    • In Mumbai
    • Electronic Trading – 1994
  • BSE – 1875
    • Bombay Stock Exchange
    • Lister around – 5K+ companies
    • In Dalal Street, Mumbai
    • Electronic Trading – 1995
    • Oldest in Asia
  • MSE - Metropolitan Stock Exchange
    • Formerly known as MCX - SX

World Top SE based on M Cap

  1. New York SE (US) – $19.3 Trillion
  2. Nasdaq (US) – $13.8 Trillion
  3. Japan E Group (Japan) –$5.7 Trillion
  4. BSE (India) – $1.7 Trillion

World oldest Stock Exchange

  • ASE – Amsterdam – 1602
  • LSE – London – 1801
  • NYSE– New York – 1817
  • BSE – Mumbai – 1875

Gayan

I was a part of other success stories, Now I wish others to be part of my success stories — Damani(Dmart)

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