FIRST STEP GUIDE TO STOCK MARKET

WHAT IS SHARE/STOCK???
Each share is a small piece of ownership

Before getting into it YOU NEED-:
ü Demat account
ü Trading account
ü Money
ü Clear objectives
ü Patience

SO HOW DOES ONE BUY SHARES?
Purchase shares from the primary market (i.e. IPO's)
Trade in the Secondary Market.


The price of every stock increases or decreases for the following possible reasons:

Ø News about company
Ø News about country
Ø Expectations
Ø Demand and Supply

BENEFITS OF INVESTING IN STOCK MARKET-:
Ø Dividends
Ø Capital gains
Ø Security and collateral
Ø Easy liquidity
Ø Unbeatable tax benefits

RISK & EXPENSES-:
• Inflation eats up into your money
• Capital gains tax: 15% for stock if you keep stock up for 1 year
• Securities transaction tax: 0.075%, both at the time of sale and purchase in case of delivery-based transaction in equities
• Depository fees
• Broking charges


MYTHS!!!!
Ø Investing in stocks is just like gambling.
Ø Only brokers and rich people make money.
Ø Fallen angels will all go back up, eventually.
Ø Stocks that go up must come down.
Ø Indian currency is strong that will always appreciate.
Ø P-Notes and strong FII flows and increasing stock prices are signs of how well we are doing as an economy.


REASONS FOR VOLATILITY IN MARKET-:
• Day traders role
• Global economy slowdown
• Inflation effect
• Crude oil prices
• FIIs role


HOW TO MAKE MONEY-:
Ø Check portfolio of company.
Ø P/E ratio analysis. (price earning)
Ø Peg analysis. ( profit earning to growth ratio)
Ø Grill your broker.
Ø Mutual funds. ( let your money manage others)
Ø Keep yourself updated


RULES TO FOLLOW-:

Ø BUY LOW SELL HIGH
Ø BASED ON NEWS
Ø “HOT STOCK” IS NOTHING
Ø BUY WHEN EVERYONE SELLS
Ø GIVE TIME TO YOUR STOCK
Ø DIVERSIFY PORTFOLIO
Ø CONSIDER FUTURE GROWTH
Ø BE READY TO LOSE MONEY


WARNING!!!

STOCK MARKET INVESTMENT IS SUBJECTED TO MARKET RISK

REGARDS

GARVIT D DAVE