Stock market institute in Delhi

1. Institute of Career In Financial Market

2. ICFM - Institute of Career In Financial Market is a market leader in the segment of financial market education. It is a unit of career pro ventures limited, a diversified education corporate. At ICFM, we deliver the cutting edge training to people willing to make career in financial markets. Our programs are not ordinary "run of the mill" programs. Our programs bring extensive focus on "next generation technologies" which give you edge in ever competitive employment opportunities.

3. Chapter 1.1: Basics Of Share Market Explained WHY DO WE INVEST?To make sure we have enough funds to be prepared for the future. Simply earning and saving is not enough. Inflation – the price-rise beast – eats into the value of your money. To make up for the loss through inflation, we invest and earn extra. This is the investment fundament. The stock market is one such investment avenue. It has a history that goes way back to the 1800s.Earlier, stockbrokers would converge around Banyan trees to conduct trades of stocks. As the number of brokers increased and the streets overflowed, they simply had no choice but to relocate from one place to another. Finally in 1854, they relocated to Dalal Street, the place where the oldest stock exchange in Asia – the Bombay Stock Exchange (BSE) – is now located. It is also India’s first stock exchange and has since then played an important role in the Indian stock markets. Even today, the BSE Sensex remains one of the parameters against which the robustness of the Indian economy and finance is measured.

4. So Let’s Start With Share Market Basics.WHAT IS SHARE MARKET?A share market is where shares are either issued or traded in.A stock market is similar to a share market. The key difference is that a stock market helps you trade financial instruments like bonds, mutual funds, derivatives as well as shares of companies. A share market only allows trading of shares.The key factor is the stock exchange – the basic platform that provides the facilities used to trade company stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the meeting place of the stock buyers and sellers. India's premier stock exchanges are the Bombay Stock Exchange and the National Stock Exchange.

5. Kinds Of Stock MarketThere are two kinds of share markets – primary and second markets. Primary Market: Secondary Market: Once new securities have been sold in the primary market, these shares are traded in the secondary market. This is to offer a chance for investors to exit an investment and sell the shares. Secondary market transactions are referred to trades where one investor buys shares from another investor at the prevailing market price or at whatever price the two parties agree upon. Normally, investors conduct such transactions using an intermediary such as a broker, who facilitates the process. This where a company gets registered to issue a certain amount of shares and raise money. This is also called getting listed in a stock exchange. A company enters primary markets to raise capital. If the company is selling shares for the first time, it is called an Initial Public Offering (IPO). The company thus becomes public.

6. WHAT ARE THE FINANCIAL INSTRUMENTS TRADED IN A STOCK MARKET?Now that we have understood what a stock market is, let us understand the four key financial instruments that are traded:

7. Four keys of financial instruments Bonds: Companies need money to undertake projects. They then pay back using the money earned through the project. One way of raising funds is through bonds. When a company borrows from the bank in exchange for regular interest payments, it is called a loan. Similarly, when a company borrows from multiple investors in exchange for timely payments of interest, it is called a bond. Secondary Market: The share market is another place for raising money. In exchange for the money, companies issue shares. Owning a share is akin to holding a portion of the company. These shares are then traded in the share market. Consider the previous example; your project is successful and so, you want to expand it. Derivatives: The value of financial instruments like shares keeps fluctuating. So, it is difficult to fix a particular price. Derivatives instruments come handy here. These are instruments that help you trade in the future at a price that you fix today. Simply put, you enter into an agreement to either buy or sell a share or other instrument at a certain fixed price. Mutual Funds: These are investment vehicles that allow you to indirectly invest in stocks or bonds. It pools money from a collection of investors, and then invests that sum in financial instruments. This is handled by a professional fund manager. This is either through a rise in the value of the units or through the distribution of dividends-money to all unit-holders

8. WHAT DOES THE SEBI DO? Stock markets are risky. Hence, they need to be regulated to protect investors. The Security and Exchange Board of India (SEBI) is mandated to oversee the secondary and primary markets in India since 1988 when the Government of India established it as the regulatory body of stock markets. Within a short period of time, SEBI became an autonomous body through the SEBI Act of 1992.

9. Chapter 1.2: Getting familiar with market-related concepts WHAT IS MARKET CAPITALIZATION? Different companies issue varied amounts of shares when they get listed. The value of one share also differs from that of another company’s stock. Market capitalization smoothens out these differences. It is the market stock price multiplied by the total number of shares held by the public. It, thus, reflects the total market value of a stock taking into consideration both the size and the price of the stock. For example, if a stock is priced at Rs. 50 per share, and there are 1,00,000 shares in the hands of public investors, then its market capitalization stands at Rs. 50,00,000.

10. WHAT DOES COST AVERAGING MEAN? Rupee-cost averaging is a concept when you buy a stock in small bunches, instead of buying in lump-sum. This helps reduce the average cost of your investment. Let us use an example. Suppose you bought 100 shares of a company costing Rs. 10 each, your total investment cost is Rs. 1000. Instead of that, if you buy 50 shares for Rs. 100 and 50 for Rs. 95, your total cost of investment would be lower. Not just that, even your average cost per share would be lower. This is called rupee-cost averaging. This concept comes handy when a stock falls after you have bought it. The fall in share price gives you an opportunity to buy more and reduce your average cost of investment. This way, when you finally sell the shares at some time in the future, you end up making more profits.

11. Chapter 1.3: HOW DOES SHARE MARKET WORK? • Ask any layman about the share market investing, and they will tell you that they don’t know about stock trading. Yet, the stock market is one of the largest avenues for investment. As many as rs. 6 lakhcrore-worth stocks have been traded in the two stock exchanges in india on some occasions. Stock market investing is often called a gamble. It would cease to be a gamble if you understood the basics of the share market. • In the previous section, you were introduced to the different market participants and other share market basics. Let’s try to stitch these narratives together and understand how the stock market works.

12. STOCK MARKET PARTICIPANTS

13. Your broker passes on your buy order to the exchange, which searches for a sell order for the same share. Once a seller and a buyer are fixed, a price is agreed finalized, upon which the exchange communicates to your broker that your order has been confirmed. Once listed, the stocks issued can be traded by the investors in the secondary market. This is where most of the trading happens. In this market, buyers and sellers gather to conduct transactions to make profits or cut losses. Stock brokers and brokerage firms are entities registered with the stock exchange. They act as an intermediary between you, as an investor, and the stock exchange The exchange ensures that the trade is honoured during the settlement#. Whether the seller has the required stock to sell or not, the buyer will receive his shares. If a settlement is not upheld, the sanctity of the stock market is lost, because it means trades may not be upheld.

14. HOW YOUR ORDER IS PROCESSED

15. WHAT ARE STOCK INDICES?From among the stocks listed on the exchange, some similar stocks are selected and grouped together to form an index. This classification may be on the basis of the industry the companies belong to, the size of the company, market capitalization or some other basis. For example, the BSE Sensex is an index consisting of 30 stocks. Similarly, the BSE 500 is an index consisting of 500 stocks.

16. The values of the grouped stocks are used to calculate the value of the index. Any change in the price of the stocks leads to a change in the index value. An index is thus indicative of the changes in the market.Some of the important indices in India are:1. Benchmark indices – BSE Sensex and NSE Nifty2. Sectoral indices like BSE Bankex and CNX IT3. Market capitalization-based indices like the BSE Smallcap and BSE Midcap4. Broad-market indices like BSE 100 and BSE 500

17. HOW IS INDEX VALUE CALCULATED?

18. Contact DetailsU 135, Ground & 1st Floor, Laxmi Nagar, Infront of Gate No. 3, Laxmi Nagar Metro Station, Delhi-110092.Direct: +91 9971333795 / +91 9971900635E Mail: info@icfmindia.com

19. THANK YOU....