Making right investment(Added On: 2021-12-11  22:39:08) Vikash
How to invest your money seems to be a very big question for investers.
Here are a few tips on this
1. Chose a wise investor for you
2. Invest small amount in recurring
INVESTMENT FUNDAMENTALS~ B-SCHOOL BULLS(Added On: 2021-12-14  14:41:02) PALAK GULATI
(THE STOCK MARKET WHIZ KIDS)
WHO WE ARE?
We help in transforming BUSINESS GRADUATES into BUSINESS PROFESSIONALS by providing learning of stock market investing. we would also develop a culture of EXPERIENTIAL LEARNING and INVESTING not only to make money but also for gaining EXPERIENCE and LEARNING by investing small amounts every month.
MISSION AND VISSION-
MISSION- "To encourage excite, and enable every business and management graduate to develop a deeper engagement with business world and economy through investing in the stock market."
VISSION- "1,00,000 Student investors by the year 2025".
INSIGHTS INTO STOCK MARKET-
NSE- NATIONAL STOCK EXCHANGE of India limited is the leading government owned stock exchange of India and the fourth largest market by trading volume, located in Mumbai, Maharashtra. The NSE of India was the first exchange in India to provide fully automated electronic trading.
BSE- Bombay Stock Exchange Limited is an Indian stock exchange located on Dalla street in Mumbai. It is Asia’s oldest stock exchange, founded in 1875. BSE is the world’s 7th largest stock exchange with an overall market capitalization of more than US$3.1 trillion as of May 2021.
NIFTY- Nifty is the abbreviation of NSE50. It is the benchmark index of NSE comprising 50 stocks.
SENSEX- It is the benchmark index of BSE and is derived from the words sensitive and index.
BULL AND BEAR MARKET-
BULLS- are the investors who buy shares because they believe that market is going to rise. Bulls market occurs when securities are consistently rising or are expected to rise and when Market is growing and is optimistic.
BEARS- are the investors who sell shares as they believe that market will go down. Bear Market occurs when securities are consistently falling or are expected to fall. People are selling shares rather than buying and are pessimistic and are losing confidence in the Market.
TYPES OF TRADING IN THE MARKET
INTRADAY TRADING- Where the trader buys and sells the stocks on the same day.
DELIVERY TRADING- Where the trader buys and holds the stocks for a longer period of time.
SHORT SELL- Where the trader sells the shares even without holding them i.e he sells first and then later buys the shares before the end of trading session.
BUY TODAY SELL TOMORROW- Where people buy shares today and the next day when the market opens, they sell the shares and make profit.
STOCK MARKET GUIDELINES
Focus on the long term.
Buy and sell at right price.
Never deal with unregistered brokers/ intermediaries
Do not make rash decisions
Never take loan to invest in the stock market
Always monitor your investments
Invest small and regular
Understand business models of companies that you invest in
Take calculated risk
Hedge your positions
ROLE OF SEBI IN THE STOCK MARKET
SEBI ensures that the issues of IPO’S and FPOs can take place in a transparent and healthy way.
SEBI is also responsible for ensuring that the investors don’t become victims of any stock market manipulation or fraud.
They act as mediators in the securities market and ensure that the stock market transactions take place in a smooth and secure manner. SEBI monitors the activities of the stock market intermediaries like brokers and sub-brokers.
INSIGHTS INTO STOCK MARKET
Stock - A stock is a type of investment that represents ownership of a fraction of a corporation. A stock is simply an investment.
Shares - Technically speaking, shares represent units of stocks.
IPOs- (INITIAL PUBLIC OFFERING) is the process by which a private company issues its first shares of stock for public sale.
This is also known as "going public".
EQUITY MARKET AND DERIVATIVE MARKET
Primary market - where securities are created and are issued by companies for the first time.
Secondary market - When the company gets listed on an exchange the stocks are then traded in the market such as BSE & NSE.
Option contract- An option contract is a derivative contract in which one party, the buyer pays a sum of money (premium) to the other party, the seller and receives the right to either buy or sell an underlying asset at a fixed price either on a specific expiration date or at any time prior to the expiration date.
Future contract- A Future contract is a standardized derivative contract in which two parties agree that one party, the buyer, will purchase an underlying asset from the other party, the seller, at a later date and at a price agreed on by the two parties when the contract is initiated.
TO FIND COMPANY'S FINANCIAL REPORT AND OTHER INFORMATION
Visit the official website of the company and download it either by visiting the Investors tab or searching with keyword Report.
Visit the Stock exchange websites like BSE/NSE.
Also, one can check them through Stock analysis or Stock price websites. EG: - money control website.
The golden rules of investing
Prepare an investment plan.
Set aside funds for short-term exigencies in cash.
Invest most of the remaining funds (say 80 per cent) in a core portfolio broadly diversified across asset classes.
Stay invested through market cycles.
Rebalance the portfolio at regular intervals.
Use the remaining funds (at most 20 per cent) - let’s call it ‘funny money’ - for short-term trading.