Know The Market (Session-4)

Greed and Fear-

  • Greed and fear are important emotions in the world of investing.
  • Greed - The tendency to accumulate more number of stocks of a company as the share price falls, usually in a bear market.
  • Fear - The tendency to sell the stocks of a company with an uncertainty of sudden fall in the share price, usually in a bull market.
  • Fear and Greed are the worst emotions to fell when investing, and it is better not to be guided by them.

SEBI -

  • SEBI stands for Securities & Exchange Board of India
  • Incorporated in 1992 it deals overall development, regulation and supervision of the stock market.
  • SEBI consistently tries to lay down market rules in line with the best market practices.
  • It enjoys vast powers of imposing penalties on market participants, in case of a breach. (For more information,click here)

What is a Depository?
Ans-
  • An institution with a similar functionality of a bank.
  • Deals with the deposit and transfer of securities such as shares, debentures etc.
  • The depositaries carry over their functions through bodies called as depositary participants.
  • Ex - CDSL, NSDL etc.

What is Demateralization?
Ans-
  • The process of converting physically held shares of a company in to electronic form.
  • These credited to the investor's account with his Depository Participant(DP).
  • When  you buy and sell shares, your demat account is either debited or credited from this account.
What is an Initial Public Offer(IPO)?
Ans-
  • An Initial Public Offer(IPO) is the selling of securities to the public in the primary market form the first time.
  • It is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public.
  • This gives an opportunity to invest and trade in the companies shares by public.
  • Ex - SpLearn ltd. come up with an initial public offer of 2000 shares.
What is a Contract Note?
Ans-
  • A confirmation of trades done on a particular day on behalf of the client by a trading member.
  • It imposes a legally enforceable relationship between the client and the trading member with respect to purchase/sale and settlement of trades.
  • Is a prescribed form with the details of trades, stamped with requisite value and duly signed by the authorized signatory.
What are the types of orders placed in a stock exchange?
Ans-
  1. Market orders
  2. Limit orders
  3. Stop Loss orders
  4. Good-till-cancelled order
  5. After-market order
What is a market order?
Ans-
  • A market order is an order to buy or sell a stock at the current market price.
  • It signals broker to execute the order at the best price currently available.
  • However, as market prices keep changing, a market order cannot guarantee a specific price.
  • Ex - We place a buy or a sell order for ICICI at Rs-345 which is the CMP, but the order can be executed at Rs-345 or  a price higher or lower i.e Rs-344.50 or Rs-345.50.

---Thank You---

1. Know The Market- Session-1
2. Know The Market- Session-2
3. Know The Market- Session-3
4. Know The Market- Session-4
5. Know The Market- Session-5
6. Know The Market- Session-6
7. Know The Market- Session-7
8. Know The Market- Session-8

Comments

Popular posts from this blog

What is C# ?

Communication Skills

7 Habits of Highly Effective People Book Summary