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%