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Stock and Stock Markets: by Nayan Tikoo

Stock markets allow people to trade financial securities and commodities. They provide liquidity and low transaction costs. The primary market is where companies issue stock initially through an IPO to raise capital. The secondary market is the stock exchange, such as the BSE and NSE in India, where stocks of public companies are traded. Stock prices change based on factors like inflation, supply and demand, interest rates, and political/economic news and rumors.

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Nayan Tikoo
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77 views12 pages

Stock and Stock Markets: by Nayan Tikoo

Stock markets allow people to trade financial securities and commodities. They provide liquidity and low transaction costs. The primary market is where companies issue stock initially through an IPO to raise capital. The secondary market is the stock exchange, such as the BSE and NSE in India, where stocks of public companies are traded. Stock prices change based on factors like inflation, supply and demand, interest rates, and political/economic news and rumors.

Uploaded by

Nayan Tikoo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Stock and Stock Markets

By Nayan Tikoo
MARKETS
A Financial Market is a Market in which people trade

Financial Securities Commodities Value


at

Low Transaction Costs Prices that reflect Supply & Demand


FINANCIAL MARKETS

Stocks
Securities
Bonds

Precious Metals Commodities Agricultural Products


STOCK EXCHANGE
A place where shares of
01 pubic listed companies are
traded
The primary market is where companies float
02 shares to the general public in an initial public
offering (IPO) to raise capital
It facilitates stock brokers to trade company
03 stocks and other securities. A stock may be
bought or sold only if it is listed on an exchange
The meeting place of the stock buyers and
04 sellers. India's premier stock exchanges are
the BSE and the NSE
WORKING OF STOCK EXCHANGE

Company Primary Issues Shares Secondary


Lists Market IPO Distributed Market Trading
begins
PRODUCTS ON BSE & NSE

Stocks

Currencies

Derivatives

Bonds
STOCKS
• A stock is a type of security that signifies ownership in a corporation and represents a
claim on part of the corporation's assets and earnings.

Issue &
Subscription

Company or Corporation

Capital Shares
ORDER PROCESSING
APNA SAPNA MONEY MONEY
What causes the stock price to change?

Factors affecting the price of the stock:


 Inflation
 Demand and supply
 Interest rates
 Political Stability
 Government Policies
 Rumors
BULLS Vs BEARS
INDEX
• A stock market index is a method of measuring a section of the stock market ,
also it acts the indicator of the performance of the economy or a sector of
the economy
• A stock market index For example:
NSE has it’s own index called the Nifty 50 which represents
how the top 50 companies, listed on NSE, by market
capitalization have performed.
Let’s end with a quote from the richest investor in world

There are two rules in the market:


•Never lose your money
•Don’t forget rule 1
-Warren Buffett

Thank you

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