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BASICS OF INVESTMENT IN STOCK MARKET :
* Greed for enormous profit
* Fear of losses
NO GAIN WITHOUT PAIN
* Safety
* Liquidity
* Return
ON THE LADDER OF RETURN :
* Bank Deposit
* Company Deposit [ No Liquidity ]
* Small Saving Schemes [ No Liquidity ]
* Debentures (Money lock for 7 Years again Liquidity problem)
* Insurance (Only risk cover)
* Bullion (Invest in long run GOLD)
* Real Estate (again Liquidity problem)
* Mutual funds
(collecting from individuals money & investing in shares-Low Risk)
* Stock Market
“MOOLAH” MANTHRAM
I Rewards
II Risk
STOCK MARKET
* High Return
* High Risk
* Primary Market
* Secondary Market
DRESS CODE :
* Bank Account
* De-mat Account
* Pan Number
* Register with a SEBI Authorized broker
2 Types of Market
* Primary Market ( IPO - New Issues )
* Secondary Market ( Trading )
* IPO – Indian public offer
* 21 days for IPO listings
PRIMARY MARKET :
* Initial Public Offer (IPO)
* Book Building
SECONDARY MARKET :
* Investor – Long Term ( Low Risk )
* Short Term
* Speculator (or) Trader [ Without speculator there is no market ]
* Knowledge is Power
* Information is the Key
* Choose the Industry
* Understand Company’s Track Record
* Number Crunching
** Chose the Industry and invest (eg.) Banks, Water, Power, Steel –(International price) , Cement, IT, Telecom, Mobile, FMCG, Bio Technology, Pharma …
2 STOCK EXCHANGES
* NSE
* BSE
* NSE & BSE Controlled by SEBI
SENSEX :
* BSE [ Started in 1875 ] (More than 7K Company’s)
* S & P CNX NIFTY
* * * India is World Market
SECURITIES EXCHANGE BOARD OF INDIA : [SEBI]
* Screen Based Trading
* Depository Services
* Speedy Settlement System
* Cash Market
* Speculative Market
Fundamental and Technical
* FUNDAMENTAL : Check all details for company…
* TECHNICAL : Check Year High, Low and High….
Company Growth : Check the EPS & PE
PE * EPS = PRICE
Check the share price with current price, if it goes higher don’t bye the share.
Watch TV News
* CNBC
* NDTV profit
Read MAGAZINE
* Dalal Street
* Capital Market
Read NEWS PAPER
* Business Line
* Economic Times
MARKET TIME
Timing : Monday 2 Friday 9.55 am To 3.30 pm, BSE upto 4.00 pm
4 Days National Holidays + Saturday & Sunday Holidays
TYPES OF TRADING
1. Intraday
2. Futures & Options
3. Delivery/Investment
4. Commodity Trading
5. Mutual Funds
6. IPOs
INTRADAY
Buy or Sell (9.55 am to 3.30 pm) in a same day is called intraday
DELIVERY
T + 2 System / Method
Trading Day + 2 Days, Total 3 Days
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Open An Account
Documents Required
1. Proof of Identity
PAN Card
2. Address Proof
* You can submit a photo copy of any of the following:
Voter ID Card
Driving License
Passport
Ration Card
Telephone Bill
Electricity Bill
Leave-License
Purchase Agreement
Bank Passbook
Latest Bank Statement Insurance Policy
Flat Maintenance Bill
3. A cancelled cheque
4. Signed Photograph of the holders
5. Margin Cheque for buying shares (Min : Rs ****)
If anything left kindly mention in chat section, Regards
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* * * BROKERAGE
Kindly check with your broker for Brokerage :
Charges 2 open A/c :-------- (Dmat & Trading A/c)
Maintance Charges :-------- (Yearly Charges)
Brokerage:Shares:
Intraday :------%
Delivery :------%
Buy:
Brokerage : (------%)
Service Tax : (------% on Brokerage)
STT : (------%) Buying No STT
Stamp Charges : (------%)
Turn Over Charges : (---------%)
Net Amount : (Min Rs.-------------)
Sell:
Brokerage : (------%)
Service Tax : (------% on Brokerage)
STT : (------%) Seller 2 Pay
Stamp Charges : (------%)
Turn Over Charges : (------%)
Net Amount : (Min Rs.----------)
If anything left kindly mention in chat section, Regards
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TAX
*** Within 1 Year if you sell your stocks you have to pay 15% TAX
*** After 1 year No Tax
*** Dividend income no TAX
*** Bonus no TAX
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GOLDEN RULES :
1. Understand your risk tolerance level
2. Decide your investment horizon
3. Understand the industry
4. Invest in a company with high promoter’s stake (Min 40%)
5. Restricy yourself to index based shares
6. Avoid buying a share because its low priced
7. High PE stocks have low risk : Low PE stocks have high risk
8. Be a seller when everyone is a buyer, Buy when others are selling
9. Do not average your purchases in a falling market
10. Learn to accept losses
11. Remember only 20% are successful in day trading
12. Beware of Rumors
13. Keep away from the market on a budget day
14. Avoid attaching sentiments to your shares
15. Do not invest on borrowed funds
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Vazhga Vaiyagam :-: Vazhga Valamudan
வாழ்க வையகம் : வாழ்க வளமுடன்
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