Introduction to share market

1. INVESTMENTS AND
INTRODUCTION TO
SHARE MARKET

2. FINANCIAL LITERACY
Financial literacy is the ability to understand and
effectively use various financial skills, including
personal financial management, budgeting, and
investing.
Similarly, according to a recent survey undertaken
by the Securities and Exchange Board of India, only
27 per cent of India’s population is financially
literate.
At three percent, merely a fraction of India's
population is invested into stock markets, lagging
far behind the US.

3. INVESTMENTS
Investment involves employment of funds with the
aim to achieving additional income or growth in
values.
Maximization of the return.
Minimization of the losses.
Beat the inflation
Returns
Risk
Safety
Liquidity
Tax Benefits
Objectives of investments:
Characteristics of investment:

4. EXAMPLE
Person X Person Y

5. RETURNS AND RISKS
Nature of investment.
The Maturity period.
Many other factors like PESTEL.
Risk is inherent in any investment.
Risk and return of an investment are related.
The higher is the risk , the higher is the return.
Return depends upon:
Risk associated with investment:
Risk may be:
Loss of capital, Delay in the repayment, Non-payment
of the interest, Variability of the returns.

6. INVESTMENT METHODS

7. SOME FACTS AND PONDERING
Warren Buffett started investing at a young age, buying his first stock at age 11 and
his first real estate investment at age 14.
He still says that he is late to invest.
What is the your age and have you done any investments?
It’s high time that we are aware about these financial instruments, being
MBA grads and know about this and help people in society
about financial instruments.

8. INTRODUCTION TO SHARE MARKET:
Share market, or stock market, is a platform where investors can buy and sell shares of
publicly traded companies. It is a highly liquid market and provides investors with the
opportunity to make a profit by buying and selling shares.
Shares are units of equity ownership in a corporation.
Mainly driven by Demand and Supply, this is in turn influenced mainly by,
The share market is influenced by factors:
1) global market conditions
2) company performance( revenue, debt, profit, growth rate)
3) economic conditions(political instability, government policies, interest rate and
inflation).

9. BASIC TERMS OF SHARE MARKET:
·Bear Market
·Bull Market
Market capitalisation
It is a market where investors talk about the stock market performing in a downward trend, or it is
a certain period where the prices of multiple stocks are falling.
It is a market where investors talk about the stock market performing in an upward trend, or it is a
certain period where the prices of multiple stocks are increasing.
Market capitalisation refers to the total number of outstanding shares of a company in the market
multiplied by the current price of each share. It is a measure of the estimated valuation of a
company.
Large-cap companies have market caps of Rs 20,000 crore or more.
Mid-cap companies are companies whose market cap is above Rs 5,000 crore but less than Rs
20,000 crore.
Small-cap companies are those that have a market capitalisation of less than Rs 5,000 crore.

10. BASIC TERMS OF SHARE MARKET:
Sensex
Nifty
Uptrend
Downtrend.
The Sensex is comprised of 30 of the largest and most actively traded stocks on the BSE and
provides a gauge of India's economy.
The Nifty is comprised of 50 of the largest and most actively traded stocks on the BSE and provides
a gauge of India's economy.
An uptrend describes the price movement of a financial asset when the overall direction is upward
An Downtrend describes the price movement of a financial asset when the overall direction is
Downtrend.

11. THE BIGGEST STOCK MARKET MYTHS:
1. Stock Market Investing is Like Gambling.
2. The Stock Market is Exclusively for Experts
3. You Can Only Make Money By Investing A Lot of Money

12. EXAMPLE:

13. FINACIALS:

14. PARAMETERS AND SHARE HOLDING:

15. CHARTS:
Smaller Duration
Longer Duration

16. SOME FACTS OF STOCK MARKET:
The costliest share in the stock market is the one share of the MRF. It costs Rs 92853 to buy 1
share of the MRF.

17. THANK YOU
HAPPY INVESTING