Introduction

 This site is about basics of stock market and how to invest in stock market. This is complete tutorial for beginners.

Stock Market

Stock market is a place where shares of publicly listed companies are traded. Investors can buy and sell shares(stocks), represent ownership claims on businesses. It is work with stock market participants.

Below are the stock market participants

• Publicly Listed compony
• Stock Brokers
• Investors
• SEBI
• Clearance House
• Transfer Agents
• Settlement banks
• depository participant

Publicly Listed Compony and Shares

Compony have a value and its divided into small units. This small units are shares or stocks.

For Example,

 Rahul running a hotel. Its running very successfully, good turn over and profit. This compony(Business) have a value of  100000 rupees. If the value is divided into 1000 stocks(shares). then one stock rate will be 100 rupees. This compony have 1000 stock with 100 rupees rate.

     Business Valuation = Number of Shares  *  Value of Each share

 Why Publicly Listed compony?  

Compony have collected money from investors to expand his business by listing in stock market using Initial Public Offering(IPO).While listing the compony in stock market, investors can buy or sell company's stocks. on that way company raise the money for expansion.

Investors

 Investors are market participants Individual retail investors, Institution investors and Publicly trader corporates trade their on shares.

Below are the example of some institutional investors.

• Pension Funds
• Insurance Companies
• Mutual Funds
• Index funds
• Exchange traded funds
• Hedge Funds
• Investors Groups
• Banks
• Various other Financial Groups 

Why Investors Investing ?

Investors investing for profit and dividend. Investors has buy a stock in small price, hold it and sell it after increase share price. Then investors get profit which multiple of number of share and amount which increase after buy. If  investors hold the share then investors get the dividend of that compony.

How to select a compony for Invest?

By using fundamental analysis  and technical analysis we can identify. Fundamental analysis means study about compony like it is a strong compony, revenue ,Good potential, Good Expansion, Good Management, Good Team.

How to Buy a Stock?

Investors need two accounts for buy stocks.

• Dmart Account
• Trading  Account

Demart Account

Demart hold stock details in electronic form.

A Demat account (short for Dematerialized account) is an account to hold financial securities (equity or debt) in electronic form. In India, Demat accounts are maintained by two depository organizations, National Securities Depository Limited and Central Depository Services Limited.

Trading Account

Investors can buy stocks using amount from trading account. We need to transfer amount from our savings account to trading account. Then have balance available in trading account and then we can buy stocks from stock market and also if sell stocks then amount will credit to trading account.

Stock Brokers

Investors have not able buy stocks from stock market. Its only by Stock brokers. Stocks brokers are stock market authorized partners. They are connecting with other investors. 

Top Brockers

Depository

Depository is used to on a Demart account. Investors can't create a demart account in depository. Its required a depository participant. 

Depository participant. 

Depository participants are create demart account for investors. Depository participant will be Bank or stock broker. Stock brokers can create both demart and trading account.

CEBI 

Securities and Exchange Board of India (SEBI) is a statutory regulatory body entrusted with the responsibility to regulate the Indian capital markets. It monitors and regulates the securities market and protects the interests of the investors by enforcing certain rules and regulations