Financial market intro
- 1. Skill & Employability Generation Academy
- 2. By: Skill & Employability Generation Academy(SEGA) Presented by: Mr.Sujit Chandra Jha Speaker: Mr.Pranay Pancholi
- 3. Awareness about Indian stock market ; Knowledge about working mechanism of the market; Awareness about modern fields of investment; Opens your mind about career opportunities in the capital market; Provide awareness about different career in this market.
- 4. Introduction of financial market • Classification • Working mechanism of Indian stock market • Facts of Indian stock market • Mutual funds Career and opportunities in Indian Stock market Concept of “be your own boss”
- 5. Debt Market Capital Market (share Market) Mutual funds
- 6. Governing body in India: Reserve Bank of India (RBI) Investment Classification Tools Issued by F.D (Fixed Deposit) Banks Bonds Government Debentures Public Ltd. Companies
- 7. Governing body in India: Securities Exchanges Board of India(SEBI) Various stock exchanges have a dedicated Listing Department to grant approval for listing of securities of companies - in accordance with the provisions of the applicable law/s like Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957 Companies Act, 1956 Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the exchange itself.
- 8. Share: It is the smallest unit of ownership that may be bought or sold on or off an exchange. Stock: Stocks in the reference of stock market are the total number of shares a person has in one company or in many companies. 100% Equity
- 9. 1. Primary Market: The first group of investors to whom a new issue of a security is sold. The primary market consists of the issuer and the first buyers of the issue. The primary market can be a time more volatile than the secondary market because it is difficult to determine the underlying value of new issues. 2. Secondary Market: A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange and the BSE are secondary markets.
- 10. The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellers and reduce the risks of investing. 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. Stock Exchanges: 2 (main) National Stock Exchange (NSE) Benchmark: NIFTY (50) Bombay Stock Exchange (BSE) Benchmark: SENSEX (30)
- 11. There are 17 stock exchanges in India. Out of which only 7 are permanent and rest 10 require their license to be renewed timely. Can you recall any names apart from NSE and BSE? The record low Sensex has ever touched is 113.28 points in December,1979 and after 35 years, it touched the record high at 28822.37 in November, 2014. Do you know U.S markets (S&P500 & Dow Jones Industrial Average) contracts can be traded in NSE. The derivatives contracts were introduced in 2011 & it was for the first time, S&P500 were listed on any exchange outside U.S.A BSE is one of world’s top exchange in terms of listed members. It has more than 5,000 companies on the list. Did you that on Nov, 2014 India became one of top 10 markets in the world by market capitalization? India market capitalization is approx $1.6 trillion & it is ahead of Switzerland & Australia markets based on Market Cap.
- 12. In spite of such a good news, out of a total population of approx 1.2 billion, there are only 20 million demat account holders in India. Sadly, not all are active! And…Only 2% of Indian household savings are being directed to Equity markets, Indians are so risk- averse! Foreign Institutional Investors (FIIs) are the strongest driving force in Indian markets. Among Domestic Institutional Investors (DIIs), LIC leads the way. The record number of trades Equity F&O were done on 23-12-2014 and it was 52,86,778. In Equities segment, record number of trades were done on 16- 05-2014 and it was 1,18,05,386. On 16-01-2015 , Nifty witnessed the record market capitalization of 98,45,639 crores!
- 13. Receive investment Investor 1 Investor 2 Investment In Financial instruments Provide return to investors proportionately Mutual + Funds = Mutual Funds How does it works :
- 14. Sectors available: Equity Market Derivatives Market Commodity Market Currency Market Fund Management/ Research Arbitrage Houses Mutual Fund
- 15. Trading Client Relationship Operations Advisory/Resea rch Professional Trader Equity Advisor Risk Management Equity Research Dealer Business Development Back Office Accounting Technical Analyst Arbitrageur Client Relationship Manager Compliance Management Fundamental Analyst Hedger Depository Operation Derivative Analyst
- 18. Please provide us feedback(queries) @ [email protected] Call us on 9648092085, 8305238227 You can also find us on Facebook(page): Skill & Employability Generation Academy or SEGA Trainers Twitter: @orange_pranay