Basics Of Stock Market

1. What is a company?

   A company is an organization or business entity formed to conduct commercial activities and earn profits.

2. How does a company create a share?

   A company creates shares by dividing its ownership into equal portions, each representing a unit of ownership in the company.

3. Why does a company sell a share?

   A company sells shares to raise capital for various purposes like expanding operations, investing in new projects, or reducing debt.

4. How does a company enter the market?

   A company enters the market by making its shares available for public trading through an initial public offering (IPO).

5. Who decides a share price?

   The share price is determined by the demand and supply dynamics in the stock market. Buyers and sellers agree on the price through their transactions.

6. What is an IPO?

   IPO stands for Initial Public Offering, which is the first time a company's shares are offered to the public for trading on a stock exchange.

7. What is the company profile?

   The company profile provides information about a company's background, history, products, services, financials, and management.

8. What is a company promoter?

   A company promoter is an individual or group responsible for establishing and promoting the company before it goes public.

9. What are the company financials?

   Company financials refer to the financial statements like balance sheets, income statements, and cash flow statements, which show the company's financial performance.

10. What is SEBI?

    SEBI (Securities and Exchange Board of India) is the regulatory authority that oversees the securities market in India.

11. What is the issue size?

    The issue size is the total number of shares offered for sale during an IPO or a secondary offering.

12. What is face value?

    The face value of a share is the nominal value printed on the share certificate, which represents the initial value of the share.

13. What is an undersubscribed IPO?

    An undersubscribed IPO is when the number of shares applied for is less than the number of shares offered for sale.

14. What is an oversubscribed IPO?

    An oversubscribed IPO is when the number of shares applied for exceeds the number of shares offered for sale.

15. How does IPO distribution work?

    IPO shares are distributed based on the allocation process, which may consider various factors like retail and institutional demand.

16. What is a fresh issue?

    A fresh issue is when a company issues new shares to raise capital through an IPO or rights offering.

17. What is OFS (Offer for Sale)?

    OFS is a mechanism where existing shareholders can sell their shares on the stock exchange.

18. Listing & share details

    Listing refers to the process of a company's shares being listed and traded on a stock exchange. Share details include key information about the company's shares.

19. Volume, prices, bid & ask data.

    Volume represents the total number of shares traded during a specific period. Prices are the buying and selling prices of a share. Bid and ask data show the prices at which buyers and sellers are willing to trade.

20. What is announcement, meeting & corporate action?

    Announcements are formal notifications made by a company to the stock exchange and shareholders. Meetings involve discussions and decisions by the company's management. Corporate actions refer to significant events that impact a company's stakeholders.

21. What is pre-market analysis?

    Pre-market analysis involves evaluating market data and news before the market opens to identify potential trading opportunities.

22. What is inter-market relation?

    Inter-market relation studies the relationship between different financial markets and how they influence each other.

23. What is post-market analysis?

    Post-market analysis reviews market performance after the trading day has ended to assess trading strategies and outcomes.

24. How to do intraday trading?

    Intraday trading involves buying and selling financial assets within the same trading day to profit from short-term price movements.

25. How to do investment trading?

    Investment trading involves buying and holding financial assets for the long term with the goal of capital appreciation and generating passive income.

Technical Analysis

1. What is Technical Analysis?

   Technical Analysis (T.A.) is a method used to evaluate and predict financial asset price movements based on historical market data, mainly charts and patterns.

2. Why do people believe in T.A.?

   Many believe in T.A. because it helps identify trends, patterns, and potential entry/exit points, assisting in making informed trading decisions.

3. Introduction to Basics of T.A.

   Basics of T.A. involve analyzing historical price data to forecast future price movements and understand market sentiment.

4. What is a Candle?

   A candlestick represents the price movement of an asset during a specific time period.

5. How to Read Candle Charts?

   Candle charts display the open, high, low, and close prices for a specific time period, helping traders analyze price trends and patterns.

6. What are Line & Bar Charts?

   Line and bar charts are alternative ways to represent price data and help in identifying trends and patterns.

7. Candlestick Patterns
   • Doji
   • Hammer
   • Shooting Star
   • Hanging Man
   • Tweezer Top
   • Bullish & Bearish Engulfing
8. What are Bullish and Bearish Candle Patterns?

   Bullish and bearish candle patterns indicate potential trend reversals or continuation.

9. Technical Indicators
   • RSI (Relative Strength Index)
   • MACD (Moving Average Convergence Divergence)
   • Stochastic Oscillator
   • Moving Average
10. How to Read Charts?

    Understanding chart patterns, candlesticks, and technical indicators to make informed trading decisions.

Future Market and Risk Management

1. What is the Future Market?

   The future market is a financial market where participants can trade standardized contracts for the purchase or sale of assets at a predetermined price and date in the future.

2. Future Market Framework

   The future market operates on an exchange where buyers and sellers trade futures contracts based on specific assets.

3. How Margin Trading Works

   Margin trading in the futures market involves borrowing funds to leverage trading positions.

4. How to Manage Risk in the Future?

   Learn strategies to mitigate risk, such as stop-loss orders and position sizing.

5. What is a Hedging Strategy?

   Hedging strategies are used to offset potential losses by taking opposite positions in related assets.

6. What is Scrip Hedging?

   Scrip hedging involves using futures contracts to hedge specific stock holdings.

7. What is a Stop Loss Strategy?

   Stop loss strategy involves setting predefined exit points to limit potential losses.

8. What is Beta & Nifty PE?

   Beta measures an asset's volatility compared to the market, while Nifty PE is the price-to-earnings ratio of the Nifty 50 index.

9. What is the Future & Spot Market?

   Understand the difference between the future market and the spot market and how they interact.