06-Basic of Stock Market
Mistakes, DVR, Warrant, Insider Trading, Stock Categorization, etc
📝 Topics Covered
- 6.1 🚫 Common Pitfalls in Stock Investing
- Beginner traps: Impatience, over-trading, herd mentality, and timing speculation
- 6.2 ⚖️ Shareholder Structures: Equity Types & DVRs
- Common vs. Preferred shares (Voting rights & bankruptcy preference)
- Differential Voting Rights (DVR) mechanics in India
- 6.3 📊 Market Holdings & Electronic Execution
- SEBI’s 75% promoter holding limits
- Key features of electronic trading (Order-driven, anonymity, transparency)
- 6.4 📜 Complex Financial Instruments & Collaterals
- Warrants: Right vs. Obligation premium leverage
- Pledging of shares: Working capital boost vs. promoter red flags
- 6.5 🕵️♂️ Insider Trading: Regulatory Collation
- Legal (ESOPs) vs. Illegal insider maneuvers
- SEBI’s ₹10 Lakh notification thresholds
- 6.6 📂 Stock Classification Filters
- Market Cap rankings (Large, Mid, Small, Micro Cap)
- Style categorizations (Growth, Value, and Income/Dividend stocks)
- Core sectoral buckets