Share Market Information

   1. What is the share market?
    Share Market- A share market
  only allows trading of shares.
    The key factor is the stock
  exchange – the basic platform
  that provides the facilities
    used to trade company stocks
  and other securities.
    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.
    A unit ownership proportional
    to the investment made in a company.

    What is an ‘Equity’/Share?

    Total equity capital of a
    company is divided into equal
    units of small
    denominations, each called a
    share. For example, in a
    company the
    total equity capital of
    Rs 2,00,00,000 is divided into
    20,00,000 units
    of Rs 10 each. Each such
    unit of Rs 10 is called a
    Share. Thus, the
    company then is 11 said to
    have 20,00,000 equity shares
    of Rs 10
    each. The holders of such
    shares are members of the
    company and
    have voting rights.
    What is Sebi What is the
  main role of Sebi?
    The SEBI was established
  in 1988 but was only given
  regulatory powers on April
  12, 1992,
    through the Securities and
  Exchange Board of India Act, 1992.
    It plays a key role in
  ensuring the stability
  of the financial markets in India,
    by attracting foreign
  investors and protecting
  Indian investors.
    Sebi Controls The Share
  Market in India.
    Initially SEBI was a non
  statutory body without any
  statutory power.
    However, in 1992, the SEBI
  was given additional statutory
  power by the Government of
    through an amendment to
  the Securities and Exchange
  Board of India Act, 1992.

  Timing of Indian share Market
  Equity- 9:15 am to 03:30pm
  Monday to friday

  Commodity Market
  Agri Commodities 10am to 5 pm

  Bullion, Metals, Crude Oil and
  Internationally linked Agri
  10:00 am to 11:30pm
  he client code modification
  will be allowed only from 11.55 p.m
  . up to 11.59 p.m.
    2.What is BSE and NSE?
    The two largest and most prominent
    stock exchanges in India are the
    Bombay Stock Exchange (BSE)
    and the National Stock Exchange (NSE).
    While the BSE has the distinction
    of being the oldest stock exchange
    in Asia, established in
    1875, the NSE has quickly grown to
    prominence since its creation in 1992.
    3.What is BSE and NSE index?
    Indices are nothing but indicators of
    market movement. Sensex is the
    benchmark index of S&P BSE
    (Bombay Stock Exchange),
    whereas NIFTY is benchmark index
    of NSE (National Stock Exchange).
    NIFTY is also known as CNX NIFTY or NIFTY 50.
    4.How the Sensex is calculated?
    One can identify the booms and
    busts of the Indian stock market
    through Sensex.
    Sensex is calculated using
    the "Free-float Market Capitalization"
    As per this methodology,
    the level of index at any
    point of time reflects
    the Free-float market value
    of 30 component stocks relative
    to a base period.
    The index is computed by
    weighted average market
    capitalization. ... In order
    to understand how
    the underlying stocks affect
    the index, the market weight
    (index weight) needs to be calculated.
    This is done by dividing the
    market capitalization of a company
    on the index by the total market
    capitalization of the index.
    5.What is the difference
    between Sensex and Nifty? --
    The main difference between
    SENSEX and Nifty is that
    SENSEX is the stock market
    index for BSE
    Limited, while Nifty is
    the stock market index
    for National Stock Exchange
    Another is that SENSEX
    is comprised of 30 stocks,
    while Nifty is comprised of
    50 stocks.
    6.What is the full form of nifty? -----
    Full form of NIFTY is
    “National Stock Exchange Fifty” –
    it is the broad index of NSE.
    NIFTY normally comprises of
    50 stocks
    but right now there are 51
    stocks. ...
    It is owned and managed by
    India Index Services and
    Products Ltd. (IISL).
    7.What is nifty 50/100/500 in India?
    ----The NIFTY 50 is a diversified
    50 stock index accounting for 12
    sectors of the economy.
    NIFTY 100 is a diversified 100
    stock index representing major
    sectors of the economy.
    NIFTY 100 represents top 100
    companies based on full market
    capitalisation from NIFTY 500.
    This index intends to measure
    the performance of large market
    capitalisation companies.
    9.What is nifty free float
    Midcap 100 index?
   ----- The objective of the
    NIFTY Free Float Midcap 100
    Index is to capture the movement
    and be
    a benchmark of the midcap
    segment of the market. Market
    The NIFTY Free Float Midcap
    100 Index represents about
    11.8% of the free float market
    capitalization of the stocks
    listed on NSE as on March 31, 2017.
    What is meant by free float
    market capitalization? ---
    Free float is a term in
    stocks trading. It describes
    the proportion of shares
    of a publicly traded company
    that is traded in the stock market
    . Note that not
    all free float shares may be
    actively circulating
    on the market at any given
    time as many traders purchase
    shares as a long-term investment.
    What are depositories? --

    Depository in simple terms
    is a institution which holds
    your securities in a dematerialised
    In this case a Depository
    is an institution which holds
    your Shares, Government Bonds,
    Mutual funds etc on your behalf.
    Like a Bank is to your Fixed
    Deposits, Cash and Recurring
    Deposits, a Depository is
    to your Shares, Holdings, Government
    Bonds etc.
    . There are 2 Central
    Depositories in India

    1) Central Depository Services
    India Limited (CDSL)

    2)  National Securities
    Depository  Limited (NSDL)
    Stock Exchanges in India (Equity Market)

    1  Ahmedabad Stock Exchange Ltd.
    2  BSE Ltd.   PERMANENT
    3  Calcutta Stock Exchange Ltd.
    4  Magadh Stock Exchange Ltd.

    5  National Stock Exchange of India Ltd.

    commodity derivative exchanges
    (Derivative- Gold,Copper,Oil,etc nature provided)
    we will discuss seprately.

       Ace Derivatives and
    Commodity Exchange Limited

       India Pepper & Spice
    Trade Association

       Indian Commodity Exchange Limited
       Multi Commodity Exchange of India Ltd.
       National Commodity & Derivatives
    Exchange Ltd.
       National Multi Commodity
    Exchange of India Limited.
       Rajkoversal Commodity Exchange Ltd.
       Universal Commodity Exchange Ltd.
    Equity Market- A market that gives
    companies a way to raise needed
    capital and gives investors
    an opportunity for gain by
    allowing those companies'
    stock shares to be traded.
    Also called stock market.
     Commodity Market:- A commodity
    market is a market that trades
    in primary economic sector
    rather than did products.-----------------------

    Soft commodities- are agricultural
    products such as wheat, coffee,
    cocoa, fruit and sugar.
    Hard commodities- are mined,
    such as gold and oil.
  Metals (such as gold, silver
    , platinum and copper) -
  Energy -(such as crude oil,
    heating oil, natural----
  gas and gasoline) Livestock
    and Meat (including lean hogs,
    pork bellies,
  live cattle and feeder cattle)----
  Agricultural (including corn,
    soybeans, wheat, rice, cocoa,
    coffee, cotton and sugar)
  Listing of Compnies on Stock Exchange
  ---------- In corporate finance,
    a listing refers to the company's
    shares being on the
  list (or board) of stock that are
    officially traded on a stock exchange.
  primary market :-  The primary market
    is where securities are created.
  It's in this market that firms sell
    (float) new stocks and bonds
  to the public for the first time.
    An initial public offering,
  or IPO, is an example of a
    primary market.
  Secondary Market:-  It is the market
    where investors buy securities
    from other investors,
  and not from the issuing organization.
  The sale proceeds from the
    secondary market go to the
    investor, and not the issuing

  Initial Public Offerings (IPO's)
    - A primary market is one that
    issues new securities on
  an exchange. The primary markets
    are where investors can get
    first crack at a new security
  issuance. The issuing company
    offers its equity to investors
    or groups and receives
  cash proceeds from the sale,
    which is then used to fund
    operations or expand the business.
  It is the largest source of funds
    with long or indefinite maturity
    for the company.
  Follow on Public Offer (FPO):-
    FPO (Follow on Public Offer)
    is a process by which
  a company, which is already
    listed on an exchange, issues
    new shares to the investors
  or the existing shareholders,
    usually the promoters.
  FPO is used by companies
    to diversify their equity base.
  Offer For Sale :-----
    OFS stands for Offer for Sale
    & serves the same purpose
    as traditional
  mechanism of Follow-On Public Offer
    (FPOs). OFS enables promoters
    to dilute their holdings
  in listed companies in a
    transparent manner with
    a wider
  participation through
    exchange based bidding platform.
  Broker/Brokage forms:---A
  broker is an individual
  person who arranges
  transactions between
  a buyer and a seller
  for a commission when
  the deal is executed.
  A broker who also acts
  as a seller or as a buyer
  becomes a principal party
  to the deal.
  Demat Acocunt:--A Demat Account is
  an account that allows investors to
  hold their shares
  in an electronic form. Stocks in Demat
  account remain in dematerialized form.
  Dematerialization is the process of
  converting physical shares into
  electronic format.
  trading account:-- Yes. A trading
  is used to place buy or
  sell orders in
  the stock market. The demat
  account is used as a bank
  where shares bought are
  deposited in, and where shares
  sold are taken from.

 Brokrage:-----is a commission
  that a broker charges on
  trade buy and sell of Shares
  or Commodity

  Bull or Bullish:-   A particular
  kind of investor who purchases
  shares in the expectation that
  the market price of that
  company's share will increase( go up).
  Bear:-  A particular kind
  of investor who Sales shares
  in the expectation that
  the market
  price of that company's
  share will fall(decrease).
  Squaring off:--- A process
  whereby investors/traders
  buy or sell shares and later
  reverse their
  trade to complete a
  transaction is called
  squaring off of a trade.

  Example:- If you purchase
  50 shares of say Infosys
  and sell them later before
  the market closes
  then you have squared
  off your buy position.
  Rally :- The word suggests the
  gain made by the Sensex or Nifty
  during the course of the day. If
  such gains are made on a regular
  basis then market participants
  like investors, brokers etc call
  it as a market rally.
  Crash :-  crash refers to a fall in
  the value of Sensex and Nifty.
  or price of Shares.
  Correction:- A correction
  (or a measured fall) in the
  Sensex and Nifty takes place
  when these indices rise for a
  few days and then retrace or
  shave off some of these gains.

  Fall of Market after big hike
  or fall in price of any sahre
  after big hike.
  hike means go up
    Bonus shares:
    These are the
  free shares that a listed
  company gives its shareholders.

  Dividend:- It is again a way of
  rewarding a company's shareholders.
  A dividend is generally issued as
  a percentage of the face value
  of a share. Face value is the
  nominal price of a company's share.
  Like bonus shares, dividend amount
  also comes from a company's free
  cash reserves.
  Book closure date:- This is the
  date on which a company closes
  its books for business after it
  announces a bonus or dividend.
  The company's registrar keeps a
  track of who owns how many
  shares of that particular company.

  Beta:- A measurement of the
  relationship between the price
  of a stock and the movement of
  the whole market. If stock XYZ
  has a beta of 1.5, that means
  that for every 1 point move in
  the market, stock XYZ moves 1.5
  points and vice versa.
  Blue Chip Stocks:- These are the
  large, industry leading companies.
  They offer a stable record of
  significant dividend payments
  and have a reputation of sound
  fiscal management. The
  expression is thought to
  have been derived from blue
  gambling chips, which is the
  highest denomination of chips
  used in casinos.
  Day Trading(Intraday Trading):-
  The practice
  of buying and selling within
  the same trading day, before
  the close of the markets on
  that day.
  Exchange:- An exchange is a
  place in which different
  investments are traded.
  The most well-known in
  the United States are
  the New York Stock Exchange
  and the Nasdaq. Bse
  Execution:- When an order
  to buy or sell has been completed
  . If you put in an order to
  buy 50 shares, this means
  that all 50 shares have been bought.
  Margin:-  A margin account lets
  a person borrow money  from
  a broker to purchase an investment.
  The difference between the amount
  of the loan, and the pric
  e of the securities, is called
  the margin.
  Order:-  An investor’s bid
  to buy or sell a certain
  amount of stock or option
  contracts. You have to
  put an order in to buy
  or sell 200 shares of stock.
  Hedge:- Hedge: This is used
  to limit your losses.
  You can do this by taking
  an offsetting position.
  For example, if you hold
  50 shares of kbc, you
  could short the stock
  or futures positions on
  the stock.
  Moving Average:-  A stock’s
  average price-per-share
  during a specific period
  of time. Some time frames
  are 50 and 100 day moving
  Portfolio:-  A collection
  of investments owned by
  an investor. You can have
  as little as one stock
  in a portfolio to an
  infinite amount of stocks.
  Quote:-  Information on a
  stock’s latest trading
  price. This is sometimes
  delayed by 20 minutes
  unless you are using
  an actual broker trading
  Sector:- A group of stocks
  that are in the same business
  . An example would be the
  “Technology” sector including
  companies like infosys,
  quick heal
  Stock Symbol:- A one-character
  to three-character, alphabetic
  root symbol, which represents
  a publically traded company
  on a stock exchange.
  vedanta’s stock symbol is Vedl.
  Volatility:-  This refers to
  the price movements of a
  stock or the stock market
  as a whole.lumes.
  Volume:- Refers to the quantity of Shares.
  Yield:- This usually refers to
  the measure of the return on
  an investment that is received
  from the payment of a dividend
  Spread:- This is the difference
  between the bid and the
  ask prices of a stock,
  or the amount someone
  is willing to buy it
  and someone is willing
  to sell it.
  Averaging Down :-  This is
  when an investor buys more
  of a stock as the price goes
  down. This makes it so your
  average purchase price decreases.
  Averaging UP :-  This is
  when an investor Sells more
  of a stock as the price goes
  UP. This makes it so your
  average purchase price decreases.
  The process of gradually
  buying more and more securities
  in a declining market
  (or selling in a rising market)
  in order to level out the
  purchase (or sale) price.
  Bid and offer:-
  Bid is the price at
  which the market maker
  buys from the investor and
  offer is the price at which
  he offers to sell the stock
  to the investor. The offer
  is higher than the bid.
  A debt security, or an IOU
  , issued by a company or
  government agency is called
  a bond. A bond investor lends
  money to the issuer and, in
  exchange, the issuer promises
  to repay the loan amount on a
  specified maturity date; the
  issuer usually pays the
  bondholder periodic interest
  payments over the period
  of the loan.
  Bourse:- The floor of a
  Stock Exchange.
  buyer:- who is willing to
  buy the sahres
  Seler:- Who is willing to
  Sell the Shares.
  Buy and Hold:
  Buy and hold is a technique
  of investing and profiting
  in stock market. A stock is
  bought and held almost
  indefinitely, assuming that
  all financial markets, in
  spite of good times and
  bad times, give a good
  rate of return on investment
  , in the long run. It is a
  long term investment strategy.
  The demand by a company or
  any other issuer of shares
  for payment, like demand
  for full payment on the due
  date. A call by a company
  should not be confused with
  a call option.
  Call Option:
  This is the right, but
  not the obligation, to
  purchase shares at a
  specified price at a
  specified date in the future.
  Capital Gain:
  The amount by which an
  investment's selling price
  exceeds its purchase price.
  The total value of the company in the stock market.
  Capital loss:
  The negative difference
  between the selling price
  of the stock and purchase
  price of the stock.
  Capital Market:
  A market where debt or
  equity securities are traded.
  Cash markets:
  The markets where securities
  have to be delivered by the
  seller and cash to be paid by
  the buyer immediately.
  Circuit breaker:
  When a stock price increases
  or decreases by a certain
  percentage in a single day
  it hits the circuit breaker.
  Once the stock hits the
  circuit breaker, trading
  in the stock above
  (or below) that price
  is not allowed for that
  particular day.
  Clearing House:
  Each Exchange maintains a
  clearing house to act as the
  central agency for effecting
  delivery and settlement of contracts
  between all members. The days on which
  members pay or receive the amounts due
  to them are called pay-in or
  pay-out days respectively.
    Closing Price:- ----
    The last traded price of a security
    at the end of a trading day.
    A fee charged by a broker or distributor
    for his/her service in facilitating a
    Consideration is the total purchase
    or sale amount associated with a transaction.
    This is the agreement between
    a buyer and a seller of a
    security, on any securities market.
    The share is described as
    cum-bonus when a potential
    purchaser is entitled to
    receive the current bonus.
    The share is described as
    cum-rights when a potential
    purchaser is entitled to
    receive the current rights.
    Custodial fees:--
    The fees charged by the
    custodian for keeping the securities.
    Debenture is a certificate,
    issued against a loan raised
    by a company, paying a fixed
    rate of interest and is secured
    on the assets of the company.
    Instruments derived from
    securities or physical markets.
    The most common types of
    derivatives that ordinary
    investors are likely to
    come across are futures
    , options , warrants and
    convertible bonds.
    Investing in a basket of shares
    with different risk-reward profile
    and correlation so as to minimize
    unsystematic risk.

    Earnings Per Share (EPS):---
    This measure expresses how much
    the company is earning for every
    share held. It is calculated by
    dividing pre tax profit by the
    number of shares in issued.
    Earnings per share is more
    important than the overall
    reported profit figure, because
    the EPS provides a better measure
    of profitability.
    A contract for the purchase
    and sale of a commodity, financial
    instrument or index at a fixed price
    at a fixed date in the future.
    Futures markets were created to
    allow producers or consumers
    to hedge the risk of the
    possible price change in the future.
    Fundamental analysis:-
    Fundamental analysis is a method
    to determine the health of the
    financial statements and focuses
    on the strengths and weaknesses of
    the underlying company and is
    unconcerned about daily price
    movements and volume variations.
    Gaps are continuation chart
    pattern, formed by an unfilled
    space between trading session.
    Gaps are referred as Tasuki,
    meaning window in candlestick
    Good Till Cancellation:--
    GTC or Good Till Cancellation is
    an attribute attached to a
    buy or sell order, to keep
    the order in system until it
    gets executed or canceled.
    Good Till Day:
    GTD or Good Till Day is an
    attribute attached to a buy or
    sell order, to keep the order in
    system, until a date if not
    canceled or executed. They are
    also known as GTT orders,
    meaning Good Till Time.
    Offsetting or guarding against
    investment risk. A perfect hedge
    is a no-risk-no gain precaution.
    A conservative strategy for
    reduction of risk through futures,
    options or some other derivative, by
    opening an opposite position to that
    already held in the underlying market.
    Taking positions in securities so that
    each offsets the other.
    Limit Order:---
    Limit order is an attribute
    attached to a buy or sell
    order, which will allow you
    to trade at your price
    or a better price.
    Line Charts:
    Line charts are stock charts
    used in charting and study of
    chart patterns in technical
    analysis. These charts are
    created by connecting a series
    of data points together to
    form a line. This is the
    basic type of chart common
    in many fields.
    Market Trends:-
    Market trends signifies
    the movement of the stock
    prices, in any one direction
    compared to its historical
    prices. Understanding the
    trend of a stock is the
    first step in technical analysis.
    Money Management:--
    It is a process of managing
    capital, to reduce the risk
    and increase the reward.
    Price Action Trading:--
    Price Action Trading is a
    technique of day trading and
    profiting in stock market.
    This is a simplistic and
    minimalistic approach to
    trading. Such traders are
    referred as Price action Traders.
    Share certificate:--
    This is a legal document
    which can be used as proof of
    ownership of a shareholding.
    A Security is a valid and
    unique combination of Symbo
    and Series. Securities are
    traded in
    the Capital Market. Shares
    and Debentures are some
    examples of securities.
    A financial instrument
    that signifies an ownership
    of a company, and represents
    a claim on its proportional
    share in the company's assets
    and profits.
    Stock Chart:--
    A stock chart is a visual
    representation of data,
    in which the data is
    represented by symbols
    such as lines in a line
    chart, bars in a bar chart
    or candles in a candlestick
  --  --------------------------------------------------------------------
    Stock Trading:--
    Buying and selling of
    securities and commodities.
    Stock Trading Orders:--
    Stock Trading Orders are a
    set of instructions, given to
    the stock broker, regarding
    buying or selling a stock.
    Stop Limit Order:--
    Stop Limit order is an attribute
    attached to a buy or sell order,
    so that the order gets executed
    as a limit order, only after the
    price has reached a specific
    trigger price.
    Stop Loss Order:-
    Stop Loss order is an
    attribute attached to a
    buy or sell order, so that
    the order gets executed as
    a market order, only after
    the price has reached a
    specific trigger price.
    Swing Charts:----
    Swing charts are stock
    charts used in charting
    and study of chart patterns
    in technical analysis.
    They plot the price swings
    of a stock disregarding time
    factor. They are also called
    as Gann charts because their
    construction is based on
    W.D.Gann's method of trading.
    Technical Analysis:--
    Technical analysis is a
    security analysis based
    on stock's market data like
    , price and volume, and open
    interest in case of futures.
    Technical Indicators:
    Technical Indicators in
    stock trading shows you the
    direction of the market, when
    probably to buy or sell, when
    probably to book profit and
    importantly when not to do
    anything. They are derived
    from the price and volume values.
    Value Investing:--
    Value Investing is a method
    of stock trading, where in
    investment is made in
    undervalued companies
    which have high intrinsic value.
    White Candles:---
    White Candles or white
    candlesticks are bullish
    lines in candlestick and
    candlevolume charts. They
    signify that the closing
    is higher than opening for
    that time period.
    Trend Trading:--
    Trend Trading is a technique
    of stock trading, where a trade
    is entered after confirmation
    of a trend and is carried on
    to the end of the trend.
    What is Investment?
    The money you earn is
    partly spent and the
    rest saved for meeting
    future expenses. Instead
    of keeping the savings idle
    you may like
    to use savings in order
    to get return on it in the
    future. This is called
    Why should one invest?
    One needs to invest to:
    earn return on your idle resources
    generate a specifi ed sum
    of money for a specific
    goal in life
    make a provision for
    an uncertain future
    When to start Investing?
    The sooner one starts investing
    the better. By investing early you
    allow your investments more
    time to grow, whereby the concept
    Basics of Financial Markets

    of compounding (as we shall see later)
    increases your income, by a
    cumulating the principal and the
    interest or dividend earned on it,
    year after year. The three golden
    rules for all investors are:
    Invest early
    Invest regularly
    Invest for long term and not short term
    What care should one take
    while investing?
    Before making any investment
    , one must ensure to:
    1. obtain written documents
    explaining the investment
    2. read and understand such
    3. verify the legitimacy of
    the investment
    4. fi nd out the costs and
    benefi ts associated with
    the investment
    5. assess the risk-return
    profi le of the investment
    6. know the liquidity and
    safety aspects of the investment
    7. ascertain if it is
    appropriate for your specific
    8. compare these details with
    other investment opportunities
    9. examine if it fi ts in with
    other investments you are
    considering or
    you have already made
    10. deal only through an
    authorised intermediary
    11. seek all clarifi cations
    about the intermediary and the investment
    12. explore the options available
    to you if something were to go
    wrong, and then, if satisfi ed, make the investment.
    These are called the Twelve Important
    Steps to Investing.
    Short-term fi nancial options :---

    Savings Bank Account

    Money Market or Liquid Funds
    are a specialized form of mutual
    funds that invest in extremely
    short-term fi xed income instruments
    and thereby provide easy liquidity
    . Unlike most mutual funds, money
    market funds are primarily
    oriented towards protecting
    your capital
    and then, aim to maximise
    returns. Money market funds
    yield better returns
    than savings accounts,
    but lower than bank fi xed

    Fixed Deposits with Banks
    What are various Long-term fi nancial options available for
    Post Offi ce Savings Schemes,
    Public Provident Fund, Company
    Fixed Deposits,
    Bonds and Debentures,
    Mutual Funds etc.


    Public Provident Fund:-
    A long term savings instrument
    a maturity of 15 years and
    interest payable at 8% per annum
    compounded annually.
    A PPF account can be opened
    through a
    nationalized bank at anytime
    during the year and is open all
    the year for depositing money.
    Tax benefi ts can be availed for the
    amount invested and interest
    accrued is tax-free. A withdrawal is
    permissible every year from
    the seventh fi nancial
    year of the date of
    opening of the account
    and the amount of withdrawal
    will be limited
    to 50% of the balance at
    credit at the end of the
    4th year immediately
    preceding the year in which
    the amount is withdrawn or at
    the end of
    the preceding year whichever
    is lower the amount of loan
    if any.
    Company Fixed Deposits:---
    These are short-term (six months)
    medium-term (three to fi ve years)
    borrowings by companies at a
    fi xed rate of interest which
    is payable monthly, quarterly, semi10
    annually or annually. They can
    also be cumulative fi xed deposits
    where the entire principal alongwith
    the interest is paid at the end of
    the loan period. The rate of
    interest varies between 6-9% per annum
    for company FDs. The interest
    received is after deduction of taxes.
    Bonds: It is a fi xed income
    (debt) instrument issued for
    a period of
    more than one year with the
    purpose of raising capital.
    The central or
    state government, corporations
    and similar institutions sell bonds.
    A bond is generally a promise
    to repay the principal along
    with a fi xed
    rate of interest on a specifi
    ed date, called the Maturity Date.

    Mutual Funds: These are funds
    operated by an investment company
    which raises money from the
    public and invests in a group
    of assets
    (shares, debentures etc.), in
    accordance with a stated set
    of objectives.
    It is a substitute for those
    who are unable to invest directly
    in equities
    or debt because of resource,
    time or knowledge constraints.
    What is a ‘Debt Instrument’?
    Debt instrument represents a
    contract whereby one party
    money to another on
    pre-determined terms with
    regards to rate and
    periodicity of interest,
    repayment of principal amount
    by the borrower

    to the lender. In the Indian
    securities markets, the term
    ‘bond’ is used
    for debt instruments issued
    by the Central and State
    and public sector
    organizations and the
    term ‘debenture’ is used for
    instruments issued by private
    corporate sector.

    Derivative is a product
    whose value is derived
    from the value of one
    or more basic variables,
    called underlying.
    The underlying asset can
    be equity, index, foreign
    exchange (forex), commodity
    or any other
    asset. Derivative products
    initially emerged as hedging
    devices against
    fl uctuations in commodity
    prices and commodity-linked
    remained the sole form of
    such products for almost
    three hundred
    years. The fi nancial
    derivatives came into
    spotlight in post-1970
    period due to growing
    instability in the fi nancial
    markets. However,
    since their emergence,
    these products have become
    very popular and
    by 1990s, they accounted for
    about twothirds of total
    transactions in
    derivative products.
  An Index
    An Index shows how a specified
    portfolio of share prices
    are moving
    in order to give an indication
    of market trends.
    It is a basket of
    securities and the average
    price movement of the basket
    of securities
    indicates the index movement,
    whether upwards or downwards.
    Dematerialization is the
    process by which physical
    certifi cates
    of an investor are converted
    to an equivalent number of
    in electronic form and credited
    to the investor’s account
    with his
    Depository Participant (DP).
   functions of Securities Market:-
    Securities Markets is a place
    where buyers and sellers
    of securities
    can enter into transactions
    to purchase and sell shares,
    debentures etc. Further,
    it performs an important
    role of enabling
    corporates, entrepreneurs
    to raise resources for their
    companies and
    business ventures through
    public issues. Transfer of
    resources from
    those having idle resources
    (investors) to others who
    have a need for
    them (corporates) is most
    effi ciently achieved through
    the securities
    market. Stated formally,
    securities markets provide
    channels for
    reallocation of savings to
    investments and
    entrepreneurship. Savings
    are linked to investments
    by a variety of intermediaries
    , through a
    range of fi nancial products,
    called ‘Securities’.
    Which are the securities one can invest in?
    Government Securities

    Derivative products
    Units of Mutual Funds etc.
    , are some of the securities
    investors in
    the securities market
    can invest in.
    Role of the ‘Primary Market’:-
    The primary market provides the
    channel for sale of new
    Primary market provides
    opportunity to issuers of
    Government as well as corporates
    , to raise resources to meet their
    requirements of investment and/or
    discharge some obligation. They
    may issue the securities at face
    value, or at a discount/premium
    these securities may take a
    variety of forms such as equity,
    debt etc.
    They may issue the securities
    in domestic market and/or international
    Need to issue
    shares to the public:-

    Most companies are usually
    started privately by their
    However, the promoters’
    capital and the borrowings
    from banks and
    fi nancial institutions
    may not be suffi cient for
    setting up or running the
    business over a long term.
    So companies invite the public
    to contribute
    towards the equity and issue
    shares to individual investors.
    The way
    to invite share capital from
    the public is through a
    ‘Public Issue’.
    Simply stated, a public issue
    is an offer to the public to
    subscribe to
    the share capital of a company.
    Once this is done, the company
    shares to the applicants as
    per the prescribed rules and
    laid down by SEBI.
   Meant by Market Capitalisation:---

    The market value of a quoted
    company, which is calculated by
    multiplying its current share
    price (market price) by the number
    shares in issue is called as
    market capitalization. E.g.
    Company A has
    120 million shares in issue.
    The current market price is Rs.
    100. The
    market capitalisation of company
    A is Rs. 12000 million.
    What is a Prospectus :---

    A large number of new companies
    float public issues.
    While a large
    number of these companies are
    genuine, quite a few may want to
    exploit the investors.
    Therefore, it is very
    important that an investor
    before applying for any
    issue identifi es future
    potential of a company.
    A part of the guidelines
    issued by SEBI
    (Securities and Exchange
    Board of India) is the
    disclosure of 23 information
    to the public.
    This disclosure includes information
    like the reason for raising the
    money, the way money is proposed
    to be spent, the return expected
    on the money etc. This information
    is in the form of ‘Prospectus’
    which also includes information
    regarding the size of the issue, the
    current status of the company,
    its equity capital, its current
    and past
    performance, the promoters, the
    project, cost of the project,
    means of
    fi nancing, product and capacity etc.
    It also contains lot of mandatory
    information regarding underwriting
    and statutory compliances. This
    helps investors to evaluate short
    term and long term prospects of the
    Meant by Secondary market :---

    Secondary market refers to a
    market where securities are
    traded after
    being initially offered to
    the public in the primary market
    listed on the Stock Exchange.
    Majority of the trading is done
    in the
    secondary market. Secondary market
    comprises of equity markets
    and the debt markets.
    Contract Note :--
    Contract Note is a confi
    rmation of trades done
    on a particular day
    on behalf of the client
    by a trading member.
    It imposes a legally
    enforceable relationship
    between the client and
    the trading member
    with respect to purchase/sale
    and settlement of trades.
    It also helps to
    settle disputes/claims between
    the investor and the
    trading member. It
    is a prerequisite for filing
    a complaint or arbitration
    proceeding against
    the trading member in case
    of a dispute. A valid contract
    note should
    be in the prescribed form,
    contain the details of trades
    , stamped with
    requisite value and duly
    signed by the authorized
    signatory. Contract
    notes are kept in duplicate
    , the trading member and the
    client should
    keep one copy each. After
    verifying the details
    contained therein,
    the client keeps one copy
    and returns the second copy
    to the trading
    member duly acknowledged by him.
    Precautions सावधानीय़ाँ :-  must one take
    before investing in the stock

    Here are some useful pointers
    to bear in mind before you invest in the
    Make sure your broker is
    registered with SEBI and the
    and do not deal with unregistered
    Ensure that you receive contract
    notes for all your transactions
    from your broker within one working
    day of execution of the

    All investments carry risk of
    some kind. Investors should always
    know the risk that they are
    taking and invest in a manner that
    matches their risk tolerance.
    Do not be misled by market
    rumours, luring advertisement
    or ‘hot
    tips’ of the day.
    Take informed decisions by
    studying the fundamentals of the
    company. Find out the business
    the company is into, its future
    prospects, quality of management
    , past track record etc Sources of
    knowing about a company are
    through annual reports, economic
    magazines, databases available
    with vendors or your fi nancial
    If your fi nancial advisor
    or broker advises you to
    invest in a
    company you have never heard
    of, be cautious. Spend some
    checking out about the company
    before investing.
    Do not be attracted by
    announcements of fantastic
    reports, about a company.
    Do your own research before
    in any stock.
    Do not be attracted to stocks
    based on what an internet website
    promotes, unless you have done
    adequate study of the company.
    Investing in very low priced
    stocks or what are known as penny
    stocks does not guarantee high
    Be cautious about stocks which show a
    sudden spurt in price or
    trading activity.
    Any advise or tip that claims
    that there are huge returns expected,
    especially for acting quickly,
    may be risky and may to lead to
    losing some, most, or all of your money.

    ईपीएफ क्या है    कर्मचारी भविष्य निधि (ईपीएफ)
    निजी क्षेत्र के कर्मचारियों को रिटायरमेंट    बेनिफिट पहुंचाने के लिए और बेहतर तरीके    से बचत करने का साधन है जिसमें आम जमा    योजनाओं से बेहतर ब्याज मिलता है और इनकम    टैक्स पर भी छूट मिलती है. इस योजना में आपका    एम्प्लायर भी अपना योगदान करता है और आपकी सैलेरी    में से भी योगदान काटा जाता है. रिटायरमेंट के समय    ब्याज सहित एक मुश्त राशि आपको मिल जाती है.
     म्यूचुअल फंड क्या है  Mutual Fund :-
    निवेशकों की एक बड़ी संख्या के द्वारा जमा पैसा    राशी को म्यूचुअल फंड कहते हैं जिसे एक फण्ड मे    ं डाल दिया जाता है। फण्ड मेनेजर इस पैसे को    विभिन्न वित्तीय साधनों में निवेश करने के लिए    अपने निवेश प्रबंधन कौशल का उपयोग करता है.
    Mutual Fund Unit:- जब बहुत से निवेशक मिल    कर एक फण्ड में निवेश करते हैं तो फण्ड को बराबर    बराबर हिस्सों में बाँट दिया जाता है जिसे इकाई या    यूनिट Unit कहते हैं.
    EPS क्या है और कैसे गिनें प्रति शेयर आय ----
    कंपनी की कुल शुद्ध लाभ से हर शेयर के हिस्से में    कितनी रकम आयेगी उसे ही Earning per Share
    प्रति शेयर आय यानि EPS कहते हैं।  इसे गिनेंगे

    शुद्ध लाभ / कुल शेयरों की संख्या
    यदि 10 करोड़ रु की पूंजी वाली कंपनी जिसके 10
    रु की कीमत वाले 1
    करोड़ शेयर हों और वह कंपनी 20 करोड़ रुपये का    शुद्ध लाभ कमाती है तो उसकी प्रति शेयर आय 20
    रुपये होगी:

    20 करोड़ / 1 करोड़ = 20

    यदि कोई कंपनी केवल तिमाही नतीजे    ही घोषित करती    है तो उन नतीजों के आधार पर कंपनी के    पूरे साल के प्रति शेयर आय की भी गणना    की जा सकती है।    -------------------------------------------------------------------
    PE Ratio  पी ई रेश्यो क्या :-
    PE Ratio यह जानने का तरीका है कि    कंपनी की आय का जो हिस्सा प्रति शेयर को    प्राप्त होगा उसके अनुपात में शेयर की बाजार में कीमत    क्या है. PE Ratio जानने के लिए सबसे पहले गिनते    हैं EPS यानि प्रति शेयर आय. उसके बाद एक शेयर की    कीमत से EPS को विभाजित करके PE Ratio निकाल सकते हैं.

    पी ई रेश्यो =शेयर की बाजार में कीमत/प्रति शेयर आय
    PE Ratio = Merket Price / EPS

    अब इसे एक उदहारण से समझते हैं. मान लीजिये    अबस कंपनी के दस रुपये मूल्य के 100000 शेयर हैं.
    कंपनी की वार्षिक आय है रुपये 2,00,000. अब शेयर का    EPS
    होगा 2,00,000/100000 = रु 2. अब यदि शेयर    का बाजार में मूल्य रु 18 है तो शेयर का PE Ratio होगा:

    PE Ratio = 18/2 =9.
    The net asset value (NAV) :---
    of a mutual fund indicates the
    price at which the units of that
    mutual fund are bought or sold.
    It represents the fund's market
    value after subtracting the
     Net Asset Value,
    या NAV का अर्थ है कुल संपत्ति का मूल्य.
    किसी भी Mutual Fund म्यूचुअल फण्ड में    नेट एसेट वैल्यू , या एनएवी का मतलब  नकदी    सहित पोर्टफोलियो के सभी शेयरों के बाजार मूल्य के    कुल योग में से देनदारियों को घटाने के बाद बकाया    जो भी बचे उसे इकाइयों की कुल संख्या से विभाजित    करके प्राप्त किया जाता है.
    Book Value:-
    Book value of an asset is
    the value at which the asset
    is carried on a balance sheet
    and calculated by taking the
    cost of an asset minus the
    accumulated depreciation.
    बुक वैल्यू वास्तव में कंपनी के खातों में    वह वैल्यू है जो की किसी कंपनी को यदि    बेचा जाए तो उसकी संपत्तियों से देनदारियां घटा    कर प्रति शेयर कितना भुगतान प्राप्त होगा. किसी    शेयर की बुक वैल्यू उसकी शेयर कैपिटल और जनरल    रिज़र्व के जोड़ को कुल शेयरों की संख्या से विभाजित    करके भी प्राप्त किया जा सकता है.
    Face Value :- It Represent to the
    value of any Share at which this is
    issued at IPO time.
    फेस वैल्यू Face Value यानी अंकित मूल्य    शेयर की वास्तविक कीमत होती है जो कि    शेयर प्रमाण पात्र पर अंकित रहती है. यदि    अबस कंपनी की कुल शेयर पूँजी दो करोड़    रुपये है और वह दस रुपये प्रति शेयर के    बीस लाख शेयर जारी करती है तो दस रुपये    अबस कंपनी के शेयर की फेस वैल्यू यानी    अंकित मूल्य होगी. फेस वैल्यू को पार वैल्यू    Par Value या केवल पार भी कहते हैं.
    Stock Split :-A stock split
    is a corporate action in
    which a company divides its
    existing shares into multiple
    shares to boost the liquidity
    of the shares.
    Stock Split तब होता है जब कोई    company नये स्टॉक जारी करने के लिए    और उसे अपने जो भी स्टॉकहोल्डर्स हे उनको    बाटने का निर्णय करती हे ।इन कंपनी के बोर्ड    ऑफ डायरेक्टर्स द्वारा यह निर्णय लिया जाता है।    जब ऐसा होता है तो शेयरधारक के पास जो भी    शेयर्स होते हे वो अब ज्यादा हो जाते हे हे लेकिन    उनका मूल्य आधा हो जाता हे । आपके स्टॉक का    कुल मूल्य नहीं बदलता है। उदाहरण के लिए, यदि    पास Stock Split के पहले 100 शेयर होते    हैं और कीमत RS. 500 . प्रति शेयर थी,
    तो Stock Split के बाद आप RS. 250
    प्रति शेयर पर 200 शेयर होंगे ।    --------------------------------------------------------------------
    Reverse Split:- रिवर्स Split
    कभी-कभी कोई कंपनी रिवर्स स्प्लिट जारी    करेगी। जब ऐसा होता है तो शेयरधारक के    पास अधिक मूल्य पर कम शेयर होंगे। उदाहरण    के लिए, एक विशिष्ट रिवर्स विभाजन 1 विभाजन    के लिए 1 है। उदाहरण के लिए, यदि कोई कंपनी rs
    1 शेयर पर ट्रेडिंग कर रहा है और आपके पास 100 शेयर    हैं, तो 10 स्प्लिट के लिए 1 के बाद, आपके पास rs
    10 शेयर पर 10 शेयर होंगे। एक कंपनी एक रिवर्स    विभाजन का प्रदर्शन कर सकती है, जब उनकी शेयर    की कीमत बहुत कम स्तर पर आ गई है और वे    संभावित निवेशकों के लिए और अधिक सम्मानजनक    दिखाई देने के लिए शेयर की कीमत में वृद्धि करना    चाहते हैं। इसके अलावा, कुछ एक्सचेंज एक स्टॉक    को सूचीबद्ध नहीं करेंगे, जब कीमत 30 दिनों के    लिए एक निश्चित स्तर से कम हो जाएगी।    -------------------------------------------------------------------
    Bonus Shares/ Issue :-  Bonus shares
    are additional shares given to
    the current shareholders without
    any additional cost, based upon
    the number of shares that a
    shareholder owns. These are
    company's accumulated earnings
    which are not given out in the
    form of dividends, but are
    converted into free shares.
    किसी भी share holder को जब कोई    company उसके share holder के    द्वारा खरीदे हुए share के ऊपर share
    देती है तब उस दिये हुए शेयर को bonus
    share कहा जाता है। bonus share
    मिलने से share holder के उस share
    की संख्या बढ़ती है। जो संख्या उसने already
    खरीद रखी है।    --------------------------------------------------------------------
    The process that follows
    a transaction when the seller
    delivers the security to
    the buyer and the buyer pays
    the seller for the security.
    It happens in Indian Share Market
    after T+2 days base means
    T- Trading day + 2 days later
    Everything a company
    or person owns, including money,
    securities, equipment and real
    estate. Assets include everything
    that is owed to the company or person.
    Assets are listed on a company's
    balance sheet or an individual's
    net worth statement.
    Bid:--- The highest price a
    buyer is willing to pay for
    a stock. When combined with
    the ask price information, it
    forms the basis of a stock quote.
    Bid Size: The aggregate size
    in board lots of the most
    recent bid to buy a particular
    Bonds: Promissory notes issued
    by a corporation or government
    to its lenders, usually with a
    specified amount of interest for a
    specified length of time.
    Book: An electronic record of
    all pending buy and sell orders
    for a particular stock.
    Booked Orders: Orders that do
    not trade immediately upon entry.
    These orders are also known as
    outstanding orders.

    Buy-In: If a broker fails to
    deliver securities sold to another
    broker on the settlement date, the
    receiving broker may buy the securities
    at the current market price of the stock
    and charge the delivering broker the
    cost difference of such a purchase.

    Call Option: An option which gives
    the holder the right, but not the
    obligation, to buy a fixed amount
    of a certain stock at a specified
    price within a specified time.
    Calls are purchased by investors
    who expect a price increase.
    कॉल ऑप्शन धारक को समापन अवधि से पहले किसी    भी समय स्ट्राइक मूल्य पर अंतनिर्हित स्टॉक खरीदने का    अधिकार देता है. समान्य तौर पर, अंतनिर्हित साधनों    का मूल्य बढ़ने पर कॉल ऑप्शन का मूल्य भी बढ़ता है.
    A put option is an option contract
    giving the owner the right, but not
    the obligation, to sell a specified
    amount of an underlying security at
    a specified price within a specified
    time. This is the opposite of a call
    option, which gives the holder the
    right to buy shares.
    इपुट ऑप्शन समापन दिनांक को    या उसके पहले स्ट्राइक मूल्य पर धारक    को अंतर्निहित शेयर बेचने का अधिकार प्रदान    करते हैं. अंतर्निहित साधनों का मूल्य कम होने    पर पुट ऑप्शन का मूल्य बढ़ता है. पुट ऑप्शन    वह है जिसमें कोई व्यक्ति बाद में होने वाली मूल्य    गिरावट के लिए कोई स्टॉक सुनिश्चित कर सकता है.
    यदि आपके स्टॉक का मूल्य कम होता है,
    तो आप अपना पुट ऑप्शन लेकर इसे पूर्व में    निर्धारित मूल्य स्तर पर बेच सकते हैं. यदि    स्टॉक मूल्य ऊपर जाता है, तो आपको बस    केवल चुकायी गई प्रीमियम राशि की हानि होती है.
    Cash Dividend / Distribution: A dividend/
    distribution that is paid in cash.
    Certificate: The physical document
    that shows ownership of a bond, stock
    or other security
    Closing Transaction:- An order to
    close out an existing open futures
    or options contract.

    Ex Dividend: The holder of shares
    purchased ex dividend is not entitled
    to an upcoming already-declared
    dividend, but is entitled to future
    वह तारीख जिस पर या उसके बाद खरीदे    गए शेयर पर खरीदार को लाभांश नहीं मिलता।    सामान्य तौर पर शेयर बाजार में इसे एक्स डेट के    नाम से जाना जाता है। इसे नकद लाभांश के    अलावा अन्य स्थितियों जैसे स्टॉक स्प्लिट और    स्टॉक बोनस में भी इस्तेमाल किया जाता है।    --------------------------------------------------------------------
    Ex Right: The holder of shares
    purchased ex rights is not
    entitled to already-declared
    rights, but is entitled to
    future rights issues.

    Exchange-Traded Fund (ETF):
    A special type of financial trust
    that allows an investor to buy
    an entire basket of stocks through
    a single security, which tracks
    and matches the returns of a
    stock market index. ETFs are
    considered to be a special type
    of index mutual fund, but they
    are listed on an exchange and
    trade like a stock.
    ETF यानी  Exchange Traded Fund
    एक्सचेंज ट्रेडेड फण्ड वास्तव में इंडेक्स फण्ड होते हैं    जो कि स्टॉक एक्सचेंज में शेयरों की तरह ही ख़रीदे    और बेचे जाते हैं. विश्व भर में ETF यानी    Exchange Traded Fund एक्सचेंज ट्रेडेड    फण्ड रिटेल निवेशकों और संस्थागत निवेशकों    में बहुत ही लोकप्रिय निवेश का साधन है.
    हम यह कह सकते हैं कि यह एक सस्ता    निवेश का साधन है क्योंकि इस फण्ड में चार्जेज    आम तौर पर  दुसरे फंड्स के मुकाबले कम होते हैं.
    आप इन्हें अपने ब्रोकर से अथवा सीधे फण्ड हाउस से    भी खरीद सकते हैं.  जहां म्यूच्यूअल फण्ड दिन के    आखिर में NAV पर लिए जाते हैं, ETF ट्रेडिंग के    घंटों में ही उस समय के  ट्रेडिंग के वास्तविक कीमतों    पर ख़रीदे और बेचे जा सकते हैं. यानि ETF में डे    ट्रेडिंग भी संभव है.
    Exercise: The act of an option
    holder who chooses to take delivery
    (calls) or make delivery (puts) of
    the underlying interest against
    payment of the exercise price.
    Filing Statement: A disclosure
    document submitted by a listed
    company to outline material changes
    in its affairs. Filing statements
    are not used for the purposes of a
    Futures:- Contracts to buy
    or sell securities at a future date.
    Growth Stock:- The shares of companies
    that have enjoyed better-than-average
    growth over recent years and are
    expected to continue their climb.
    Income Stock:- A security with a
    solid record
    of dividend payments and which offers
    a dividend yield higher than the
    average common stock.
    Inflation:- An overall increase
    in prices for goods and services,
    usually measured by the percentage
    change in the Consumer Price Index.
    Inside Information:- Non-public information
    pertaining to the business affairs
    of a corporation
    that could affect the company's
    share price should the information
    be made public.
    Insider:- All directors and senior
    officers of a company, and those who
    are presumed to have access to inside
    information concerning the company.
    An insider is also anyone owning
    more than 10% of the voting shares
    of a company.
    Insider Trading:- There are two types
    of insider trading.
    The first type occurs when
    trade in the stock
    of their company.
    Insiders must report these
    transactions to the appropriate
    securities commissions. The other
    type of insider trading is when
    anyone trades securities based on
    material information that is not
    public knowledge. This type of insider
    trading is illegal.
    International Securities Identification Number
    The international standard that is
    used to uniquely identify securities.
    It consists
    of a two-character alphabetic country
    code specified in ISO 6166, followed by
    a nine-character alphanumeric security
    identifier (assigned by a national
    security numbering agency), and then
    an ISIN check-digit.
    Investment:- The purchase or ownership
    of a security in order to earn income,
    capital or
    both. Investments may also include
    artwork, antiques and real estate.
    Investment Advisor: A person employed
    by an investment dealer who provides
    investment advice to clients and executes
    trades on their behalf in securities and
    other investment products.
    Last Trading Day:--- The last day on
    which a futures or option
    contract may be traded.
    Limit Order: An order to buy or sell
    stock at a specified price. The order
    can be executed only at the specified
    price or better. A limit order sets the
    maximum price the client is willing to
    pay as a buyer, and the minimum price
    they are willing to accept as a seller.
    After Market Order :- Stock market opens
    at 9.15 am
    on weekdays and closes at 3.30 pm
    but using this option you may order to
    buy or sell any shares after working
    hours of market.
    Listed Stock:-- Shares of an issuer that
    are traded on a stock exchange.
    Issuers pay fees to
    the exchange to be listed and must
    abide by the rules and regulations
    set out by the exchange to maintain
    listing privileges.
    Market Order:- An order to
    buy or sell stock immediately
    at the best current price.

    One-Sided Market:-- A market that
    has only buy orders or only sell
    orders booked for a
    particular security.
    Open Order:- An order that
    remains in the system for more
    than a day. See Good-Till-Cancelled or
    Over-The-Counter (OTC) Market:-
    The market maintained by securities
    dealers for issues not
    listed on a stock exchange.
    Almost all bonds and debentures,
    as well as some stocks, are traded
    over-the-counter. An OTC market is
    also known as an unlisted market.
    Penny Stock:- Low-priced speculative
    issues of stock selling at less
    than Re. 1 a share.
    Position Limit:-- The maximum number
    of futures or options contracts
    any individual or group of people
    acting together may hold at one time.
    पैनी स्टॉक्स Penny Stocks आम तौर पर उन शेयरों    को कहा जाता है जो शेयर बाजार में बहुत ही    कम कीमतों पर उपलब्ध होते हैं.
    Premium:-  Price of An option contract.
    Real Estate Investment Trust (REIT):
    Typically, a closed-end investment fund
    that trades on an exchange and uses the
    pooled capital of many investors to
    purchase and manage income properties.
    Equity REITs primarily own commercial
    real estate, such as shopping centres,
    apartments, and industrial buildings.
    By taking advantage of the trust
    structure, REITs offer tax advantages
    (beyond traditional common equity investments)
    to investors and provide a liquid way to
    invest in real estate, which otherwise
    is an illiquid market.
    Redeemable Security: A security
    that carries a condition giving
    the issuer a right to call in
    and retire that security at a
    certain price and for a certain
    period of time.
    Risk: The future chance or probability of loss.
    Short Selling:-- The selling of a
    security that the seller does not
    own (naked or uncovered
    short) or has borrowed (covered short).
    Short selling is a trading strategy.
    Short sellers assume the risk that
    they will be able to buy the stock
    at a lower price.
    Positions Limit: Maximum number of
    futures and options contract that any
    individual investor can hold at any
    given point of time.


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    The information contained herein is subject to change without
    prior notice. While every effort is made to ensure the accuracy and
    completeness of information contained, the Everyday-Intraday-Tips makes no
    guarantee and assumes no liability for any errors or omissions of
    the information. No one can use the information as the basis for any
    claim, demand or cause of action.