In long run investment in stock market is not risky
In Long run investment we have to pay 0 tax
If you invest in shares we get interest (dividend)
Difference between interest and dividend
Interest is mandatory for the banks
In stock market companies dividend is not mandatory
Interest is fixed but dividend is not fixed it is fluctuating in nature
Long term capital gain {LTCG} (tax free ) If you are holding stocks more than one year
AND EARNS PROFIT IT IS KNOWN AS LTCG no tax LEGALLY
Whenever you invest money in fixed deposit the interest is should be taxable depends on your level of your
income
LEGALLY Dividend is tax free
DIVIDENT : RETURN ON INVESTMENT IN SHARES (IT IS COMPANIE’S DECISION WHETHER TO DECLARE
DIVIDENT OR NOT
DIVIDENT AND LTCG ARE TAX FREE FOR DIVISIONS FOR INDIVIDUALS SUBJECT TO LIMITS (THERE
ARE TO BE LIMITS FOR DIVIDENTS ALSO
Dividend is given to customers to increase their investment by attracting customers
Types of dividend
Stock dividend : company adds some shares In customers account and it is known as stock dividend cash
dividend
Cash dividend : company adds money into the user account and it is known as cash dividend
We have to pay tax when the dividend amount is more than 10 lakhs
We have to pay tax when we sell stock dividend I smore than 10 lakhs
Face value: the original share price at which the promoters brought by the company
Promoter is a person or a group of persons who starts the company promoters if you are a promoter to the
company you get dividend you are a share holder to the company
100% of the dividend is possible based on the face value
Every company can decide its own face value
Promoters will decide face value 40.46 timeline
Everything is in demat form physical shares also available because it is like a report card.
Sharecertificates also in physical form
Sharecertificate gets shareholders
Very minute shares will be also in physical form but majority will be in dematerialized form
Stock markets starts at 9:15 and ends at 3:30
After 3:30pm analasis of shares Analasys
Invest in different different companies
Try to invest in companies which is undervalue and sell them after reaches its value
Whenever market falls it can make you a hero or zero
Common sense should be there in stock market 1:11:00
Top line (turnover) Bottomline(profits)
Try to see their growth story over the past 5 years see their turnover story
If you have faith on an organization buy shares of that organization rather than buying the products of that
organization
Check financial growth of the company
Last trade price: last trade price on bse and nse would be different bcoz of demand supply
From 9:15 to 9:30 in the morning there is huge fluctuation in the market
To avoid fluctuation
Pre opening market session : it is a 15 minute session from 9 to 9:15 to obsorb heavy fluctuations in the market
9:15 to 3:30 : market hours 4:00 pm to 9:00 am after market orders
We can place order after 4:00 pm to 9:00 am in the next morning such an order is called after market order
(AMO)(we may place AMO ‘s but they executed at 9:15 )
Gap up opening: if the share price opens at a price higher than previous day closing price , it is know as gap up
opening.
A Gap Down is when a stock opens at a lower level than the previous day's low. For example, if the previous day's high was
500, and the stock opened at 495, there would have been a 5 point gap down. This is considered a bearish signal.
Announcement date: date at which the company announces bonus or split
Record date: date at which you must have shares in your demat account to enjoy bonus shares
Ex-bonus date: date at which shares starts trading at a revised price
Candle stick patterns
Who invest in an ipo greater than 2 lakh rupees- high net worth individual (HNI)
Who invest in an ipo lesser than 2 lakh rupees-RII
dII(domestic instictutional individual)-EX: LIC’S MUTUAL FUNDS
foreign portfolio investor-FOREIGNS INVESTS BY CHANGING MONEY
SHARE CERTIFICATES (PhySICAL FORM) ARE CONVERTED INTO ELECTRONIC SHARES THROUGH
DEPOSITIERS(NSDL) AND CDSL
OUR ACCOUNT IS INDIRECTLY OPENED WITH DEPOSITORIES
Volume :no of shares which are traded on a specific day
Stock market basics (wealth creation tips)
Face value: Face value is a financial term used to describe the nominal or dollar value of
a security, as stated by its issuer. For stocks, the face value is the original cost of the stock,
as listed on the certificate. For bonds, it is the amount paid to the holder at maturity, which
is customarily $1,000. The face value for bonds is often referred to as "par value" or
simply "par."
Volume 75%
