MARKET TERMS

What is Agent ?
Ans : An Agent or Broker or any Brokerage Firm act on
behalf of client in Buying and Purchasing of shares.
Note :Agent do not own shares .It only on behalf of You buy
and sell shares its his/her business.
Like : Mr A is client and he is very busy men looking to
invest in Share market for more source of profit. He contact
Mr B who is Broker and buy and sell shares in behalf of Mr
A and transfer share profit in Mr A demat account . Here
Mr B is Agent .
What is Ask /Offer ?
Ans : Ask/offer in stock Market is
The lowest Price an Owner is willing to sell the Stocks is
called as Ask /Offer .
Suppose Mr A is CMD of Co Z and Co Z is facing some
downtrend due to market conditions i.e. Including Internal
market and external market trend . Now Co Z has some
shares which is continuously showing down Trend and not
showing Good Growth .So Z want to rid ot this
shares/Stocks and offer to sell it even at some loss or at low
Price .This low Price is called as Ask /offer and willing to sell
it as no Option left .
What is Assets ?
Ans : Every company has its name and cash or Capital
,their equipments ,land in which they built company and
technology they are working is called as Assets .
Like
Co A has capital of 1 Billion Dollar .Co A work on Solar
technology sector .Its branch is in Mumbai and equipments
related solar latest technology they possess .this is called as
Assets .
What is Bear Market ?
Ans ; A bear market is a Market in which stock price is
falling continuously .Here Investors is lack of Interest of
Investment
Reasons may : (a)Less growth of Nation (b) Valuation of
Currency with other is falling sharply etc.
Example :
Mr A is a Foreign Person and he want to Invest in India .
But he is seeing India growth reduce is not showing Good
trend and valuation of Currency with other is sharply
decreasing and other factors like Jobs , Manufacturing is not
showing Good trend .So he will not invest in fear of loss and
market decrease Continuously . This is Bear Market .
What is Beta in Stock Market ?
Ans : Beta in Stock Price is a Measurement of relationship
between Stock price of any particular stock of Company and
Movement of Whole Market .
Now let us take example :
Co A has release IPO i.e. Initial public Offer and listed in
Stock exchange and then release FPO i.e. Forward Public
offer and has shares in market which common Individual
can buy and sell simultaneously .Now Co A share 1 Share
cost is=20 Rs .
1 Share =20 Rs (assume ) . Now when market is Going up
share will show Good trend and when market Goes down
share will show negative trend as market is down .
So on basis of market share or stock price is changing .
This is Beta in stock market .
What is Bid in Stock Market ?
Ans :
Bid is a Highest price a buyer or client is willing to pay
for particular stock of particular company .It is opposite of
Ask/Offer .
Let us suppose Co A come in market and one of Co A is
showing Good Profit/Trend .now Co A want to bid on this
stock and sell it to gain Maximum profit from this stock .
This Process when he get particular client ot Co who ready
to pay any price for stock is called as Bid .
What is Blue Chip Stock ?
Ans :
Stock of large and well established companies and
companies which is financially well established these
companies hold record of consistent paying Good profit or
Good share from Co Profit to share holders is called Blue
Chip stock . Blue Chip Stock is generally of Big Companies
which has Market Capital (i.e.share holder shares total in
Co including internal and external ) and asset of 1000 of
Crores.
Let us take example :Co A is big company which has asset of
1000 Billion Crore in Market .Co A is Popular Company in
stock market . Co A has remarkable impact in market .CoA
shares rising up continuously in market and give Good
shares of their profit to client. Mr X is client ,he will invest in
Co A .Co A shares rising Good in market and give
continuously share of Profit to Mr X from years . This stock
is called as Blue Chip Stock issued by Co A .
What is Book in Stock market ?
Ans : Book in stock market is an electronic record of
managing all the Pending buy and sell Orders of Particular
stocks .
Example :
Co A registered in stock market and it release shares in
market .Client Buy and sell stocks earn profit and Co also
from client involvement . Now Co A has one box called Book
in which they store those stocks which is pending stocks
which is to buy and sell later time and store electronically in
Book
Co A has book which is electronic record of Client shares
which will later buy/sell .
Co A and all company has Book .
What is Bull Market ?
Ans : A Market in which share price is rising continuously is
called as bull market . In Bull Market investors investment
is high spirit .he is Positive of investment .
Like A is a Foreign Investor seeing Good fortune in india as
India is showing Continuously growth . Now A will invest in
India in different Co .different shares ,this will help indian
market also and foreign Individual also .
This is Bull market .
What is Business day ?
Ans : Business day in Stock market means Monday to
friday which is working day in stock market .
Stock market opened in 9 Am and Closing Time is 3:30 PM.
What is Defensive Stock ?
Ans : A stock that Provides Continuous dividends i.e. Share
from Profit and a stable earning to client even in Period of
economic downturn or market is falling sharply ,these
companies will pay you continuous share among Profit is
called as Defensive Stock
Like Coal india in case of loss in market tries to give
continuous dividends or profit to its shareholders even when
market is showing downward Trend .Coal India Provide
stable earning to its shareholders .
Coal india has defensive stock which give continuous stable
earning even in case of economic downturn.
What is Diversification in Stock market ?
Ans : In Market ,one individual always have investment risk
who invest in market ,So to minimise this fear we purchase
share of different companies in different sector to minimise
other risk and get some good from other companies is called
Diversification.
Like Suppose Mr A invest in stock market in Reliance and
after some time Reliance is not showing good trend ,growth
rate is downturn of Reliance .So Mr A decided to invest in
other companies like Airtel or TATA to rid of loss and get
some good from Airtel or TATA .This is called
Diversification.
What is Hedge in stock market ?
Ans : Hedge is a Strategy or attempt in reducing the risk of
adverse Price Movement of assets .
Let us Understand it with examples :
Co A share is continuous showing downturn . Now Co A
think to bring some strategy policy to formulate such steps
so risk or reduction can reduce . This strategy to look on
asset which is reducing to bring into right path is called as
Hedge in Stock market .
What is one sided Market ?
Ans : A Market that has either Potential sellers or Potential
Buyers is called as One Sided Market .
India has mixed market which has mixed Potential sellers
and mixed Potential Buyers .
What is Thin Market?
Ans : A Market in which there are comparatively low number
of offering to buy and offering to sale shares is called as Thin
Market .In Thin Market since low number therefore
Transactions is less and Prices are volatile i.e. Very susceptible
to strain in thin type of Market . This may includes internal and
external conditions .
Let us Understand it with examples:
In USA 2008 Crisis when share market has fall very deep .This
affect whole Indian and International market other than india
also results recession. This has led to india Thin market as less
offering of buy and sell of shares in stock market . And
individual is less active in share market because of falling
.Therefore transactions is less and pro volatile more .This is thin
market .
What is Price Earning Ratio in Share Market ?
Ans : A valuation of companies last traded share Price to latest
reported 12 month earning Per share of Company is called as
Price to Earning ratio.
Now
let us take example
Company A till today last traded price in market is 60Rs and 12
Month earning Per share of traded is 6 Rs i.e. It is of 12 Month
of earning per share of Co A . Last traded price i.e. Closing
Price or trading of shares invest sell or buy or shares last is 60
Rs for particular day .Then
Price Per earning will be =(60/6)= Rs 10 Rs .
What is Pre Opening Session in Stock Market ?
Ans : Pre opening Session in stock market is of Duration of
15 Minutes . It is between 9 Am To 9:15 Am before market
actually start is called Pre Opening Session in Stock market .
What is done in this pre Opening Session of stock market ?
(a) entry level which is of today market related stuffs is
performed (b)Modification regarding Yesterday related
stuffs was done and (c) cancellation of stuffs highlighted
questions of yesterday is done .
What is Put Option in Share Market ?
Ans : An Option that is given to investor to sell a Particular
stock or Share at stated Price within Specified time period .
Put Option is for those who feel Particular stock is going to
fall down than the stated Price .
For example :
Company A has Shares in market and that shares is rising
and falling due to market conditions. Now Customer name
MrZ who invest in Co A . Mr Z is seeing this market trend
of Co A and he want to sell his shares of Co A and get out
from market . So Co A will provide option to Z that you can
sale your shares at stated price which is comfortable price
for both within specified time period .As Mr Z want to out
from market looking on A trends .So A will provide him put
Option . In this way put Option works .
What is Listed Stocks ?
Ans : The Shares of an issuer that trade on stock exchange
is called as Listed Stocks . The issuer has to pay fees to be
listed in stock exchange and abide by regulations of stock
exchange and maintain listings rules .
Like Birla Sun Life Insurance is listed Stocks .It is listed in
stock exchange and they have to abide by rules .
What is Stock Split ?
Ans : Stock split is way to increase Number of shares of a
company by splitting the existing shares . It is usually done
to increase the availability of Shares in the market .The
usual stock split ratio is 2/1 and 3/1 . That is One share is
split into two Parts and one share is split into 3 Parts .
Example :HDFC Prudential has one share on Green project
.now HDFC wants to diverse more its shares in Green
project by not increasing Much capital .So HDFC will split
Green shares into 3 Parts suppose so to work more on Green
sector investment .this is called Stock Split
What is Index in Share Market ?
Ans : An Index is a statistical measure of change in economy
(+ or -) or security market i.e. Investment market or share
market . Index has their own calculation Process and
usually measured in Percentage change of base value over
the time over a Particular Period .
Like : Share market suppose end at 31000 at 3:30 Yesterday
,then today share market increase by +5% or -5% suppose
,this value is changed on basis or respect of base value of
yesterday ,which may or may not change today after closing
,then today value suppose end at 32000 ,this will be now base
value for tomorrow and with increase or decrease of +3% or
-3 % share market again close tomorrow . This is % change
of base value over period .This is also change in security
market or economy as market position changes .
What is Future Contract ?
Ans : let us Understand it with examples :
A is Big Retailer and B is small retailer . A sells thing to B
and B sells same thing to Customers . Now Suppose Product
is orange . Orange Market is Going Up and down in recent
days and it is expected to move rise or fall in Upcoming 6
Months also .Now A and B met at place . They decide to fix
One Price in which A give to B so that Price will be
comfortable for both and neither of them has loss .This price
is predetermined Price for future exchange of things .This
Process is called as Future Contract .This is done to avoid
Future loss keep in Mind.
Now Definition :
Future contract is a agreement made to buy or sell a
particular commodity or Financial instrument or related
things at predetermined Price for Future Purpose .
What is Option Contract ?
Ans : An Option Contract is Contract between two Person
who is doing business like small seller and big seller or
Buyer and Seller . That one will buy and sell thing at
determined Price at later date .This is later date one buy or
sell at price which is determined earlier .
Like A want to buy House from B .B has one home which
cost Rs 10 lakh. But B want to sell house after 1 Year and A
also need house after 1 year in 10 lakh and not more than .
So B told A that Yes i will buy at 10 lakh which is of today
price after 1 Year . This both agree and it is called Option
Contract .
Difference Between Future and Option Contract then
Future Contract is also Option Contract is that Between
predetermined price but two Buyer and seller or two persons
persons contract that price will that they will fixed at
be Fixed for Upcoming 6 predetermined price at specified
months so they will not face Period at agreed price here date
loss of Market change and time is Fixed
Generally two small and big Here buyer and seller or one
seller do to not face loss who buy and sell flat have
Option contract so both will be
comfortable.
What is Position limit ?
Ans Maximum Number of Future and Option contract that
any individual can hold at any specified time period is called
as Position limit.
Similar thing happen in market also
same analogy as of two seller or buyer or two person who
buy and sell flats respectively
What is Outstanding Shares ?
Ans : The Stock Shares which Co has in Market that is held
by Shareholders i.e. It can be Individual or an Institutional
Investors and restricted shares held by Company officers
and individual of Co is called as Outstanding Shares .
Let us Understand it with example :
Co A is listed in Stock exchange has 100 shares i.e. 100
Shares trading in a day suppose .This 100 Shares held by
Individual who is outside of Co like Us and one other
institution suppose GMR Group who invest in this Co and
has Shares .Out of 100 Shares maximum own by outside Co
individual and limited suppose 20 own by Co A individual
employees . 80 own by Outside Individual and Institution.
This condition of shares Division is called as Outstanding
Shares .
What is Market Capitalisation ?
Ans : The Total Value in Indian Rupees of all of a Co
Outstanding Shares .It is calculated by Multiplying all the
Outstanding Shares with Current Market Price of One
Share (suppose 10 Rs ) .It determines Co Size in terms of
Wealth.
Let us Understand it with example :
Suppose we want to calculate Market Capitalisation of
Reliance Green .Then we Multiply with outstanding Shares
i.e. Shares of shareholder and Institution (outside ) suppose
1000 and then Multiply with Current market Price of One
Share of Reliance Green suppose Rs 10 .Total market
capitalisation will be 1000*10=1000 Rs .This is example
value may Go Up .
What is Yield in Stock Market ?
Ans :
Yield in Stock Market is a Measure of Return on Investment
in terms of Percentage (%) .Yield is calculated by dividing
Current Price of the Share by Annual Dividends Paid by
Company for that Share .
Dividends is Share of Earning of Company which Co Give
to shares .Shares that of Co invested in market .That earning
some share Co Give to boost Shares in Market .
Take Example :
Co A share price of the Share is Rs 100 and Dividend i.e.
Share from earning Paid annually is Rs 10 for Particular
share of Co A . Then Stock Yield will be
Rs 100/Rs 10 =(10)% of CoA Particular Share .
As each Co invest in market and boost their shares by
Giving dividends i..e. Share from earning .
What is Face Value in Stock Market ?
Ans : Let us Understand it by Quoting One example :
Company A decided to raise 10,00,000 through Bonds to
raise Capital from market for Construction of New Factory
of Co A .If each Bonds has face value i.e. (CP in market) is
1000 and Co A issue 1000 Bonds then only Co can raise
10,00,000 from market .so now Co Generate 10,00,000 From
market .
Interest will be Paid on Bonds .
Bonds is means to raise Capital from Market . Co issues
Bonds or Securities and issue Bonds and exchange money
from Public and Give them Bonds so as to increase Capital
and in return Co repay amount of Public at specified Time
limit with interest or No interest depending Upon Bonds
conditions .
What is Portfolio ?
Ans : Portfolio is a Collection of Investments own by an
Investors in Market is called as Portfolio.
Let us Understand it with example :
Mr A is client who invest in Market . Market is Going Up
since few days . Now A thinks to invest more in those Co
who is showing Profit .Like Infrastructure Sector is Going
Up . Mr A invest in different Co of Infrastructure suppose 4
Co he invested . This is stored by Mr A who is investor in
bag which is called in market terms Portfolio .
What is ADR ?
Ans : ADR stands For American Deposit Receipt . These are
for Foreign Companies not of USA origin that trade in USA
share market .
Let us Understand it with example :
Infosys is a Global IT Co . Infosys is trading in Indian
Market and in USA share market they trade also .Infosys
has shares which is offer to Client of USA also . In USA also
they enter in market through IPO i..e Initial public offer and
then Forward Public offer to offer shares in market .So
Infosys is MNC but not of USA but Indian origin. And
traded in USA .This is called as ADR i..e American
depository receipt .
What is Secondary Offering ?
Companies which are doing well in stock market showing
Good Growth sign ,think to do another offering of Stocks ,in
order to sell more stocks and raise more money from that
stocks overall is called as Secondary Offering.
Let us Understand it with example
Infrastructure Co showing Good Sign in market since few
days .Suppose L and T has direct Growth Fund stocks and
which is showing Good Growth. Now L and T thinking to
bring L and T Direct Green Growth Fund which will help
Co to raise more money and attract Investor simultaneously
.This is called as Secondary Offering.
What is Difference Between direct and Regular Plan in
Stock Market ?
Direct Plan is Direct Route to Regular Plan is route to Invest
invest in stock market .One can in share market through Broker
Buy or Sell shares with demat or Broker Firm .Here Your
account in hand with help of Buyer and seller Part is done by
direct plan Broker .
Direct Plan Yield More Profit in Regular Plan since it is through
long Run .Difference of profit Broker directed Route Profit
may be 3 to 4% .Direct Plan share Broker will also take.So it
started in 2012 is less Yield than Direct Plan.It
started Way back.
What is Exchange Traded Fund i.e. ETFs?
Ans : ETF stands For exchange Traded Funds .ETFs is like
Stocks because here You buy and sell shares . It is like
Mutual Funds as it track an Index (i.e. Value variation in
short ).
like Columbia India Small Cap ETFs
Small Cap is companies with small capitalisation i.e. Small
shareholders in short i.e. Small external shareholders who
invest in small Cap companies .
Columbia India Small Cap ETFs Stocks .Shareholder can
buy and sell shares . One can track Index i.e. Growth
(Positive or Negative ) of Columbia India Small Cap ETFs
by seeing market .
What is Rally Term in Stock Market ?
Ans : Rally is a rapid increase in the General price Level of
the market or in Simple Price Level of the Individual Stock .
Let us understand with example
Let us Understand with example
Suppose Birla Sun life Equity Fund Current value or Net
Asset Value (i.e. Combination of all asset under ) under Birla
sun life Insurance is 31 INR .Now as Market Open today it
rose by 1% (let ) .then total increase in Net Value or Price
will be 31+(1/100).31 which is equal to 31.031 i.e. Current
NAV or net asset value .
This Process is called Rally in Stock Market .
What is Sector in Share Market ?
Ans :Sector is a Group of Stock that are working in Same
Business . It is working under same Technology .
Let us Understand it with example :
Like Apple and Samsung works in Mobile Technology
Sector and has Mobile technology shares in stock market in
simple words .
As Infrastructure Market is showing Good Graph .L and T
works in infra Sector ,GMR group works in Infrastructure
Sector etc .

What is Quote in Stock Market ?

Ans : Quote in Share Market is Information about stock
latest Trading Price .This is Sometimes delay by Some
Minute the Latest Information . If You are Using Actual
Broker Trading platform then no issue .
Actual Broker Trading platform like Money Control
,Motilal Oswal etc Update You with latest trading
information of a particular Stocks. Let us Understand it
with example:
ICICI Bank NAV is 291.85 current with 0.85% Increase
Index or simple Growth .It will change Per second value in
% either Goes up or down .This is Quote which shows You
latest trading Price of particular stock like ICICI is 291 .
Platform like MoneyControl and Motilal Oswal update You
each moment variation of stock.
These are available in Android and IOS app also.
What is Going Long in stock Market ?
Going Long is General mindset of people who invest in Stock
Market.
What is Going Long in Stock Market ?
Ans :let us Understand it with example
Mr A invest in Market. He Invest in Market from quite
longtime . There are two perspective in Market
(a) Market Goes Up
(b) Market Goes Down .
When market is Going up ,You will invest in shares of
Particular Co in Market .You wont Get as big Benefit when
it is up .
Now when Market Goes Down ,and then after Some time it
increases gradually. So when You Invest it is down ,One can
get benefit of market rising and his/her shares and profit will
go up .
Mr A think and see position when market is going down and
he invest in market keep in assumption and expert
suggestion ,market will Go up after some time.Now when
market goes up ,Mr A profit in shares will increase Great
and he gains benefit .
This is called Going long or simple words long time
investment .
What is Dawn Raid in Stock Market ?
Ans : Dawn means Morning
Raid means Surprise happen of Something
(in General Sense )
It Means Buying of Huge amount of shares in the
Morning at the Opening of stock exchange is called as Dawn
Raid .Here Buying of shares can be for Individual particular
Co or it can be of Group of Co which is expected to grow in
coming days .
Let us Understand it with example
Investors A ,B ,C and D invest in Market . They are
watching that Govt is focussing on Infra Sector and it is
showing Growth . Now Suppose Today by any reason Infra
Shares of Co move downward . Then these Investors i.e. A
,B ,C and D think that when they will go to market
tomorrow they will buy shares of Infra as though shares are
Going down when it Goes Up they get huge Profit .And then
next day these Investors buy huge shares of Co working in
Infra ,this result investment high and since Infra already in
growth Graph share market move Up .
The Motive of Investors in buying Huge Number of shares at
Opening of Market is the above lines . Dawn Raid they Buy
huge shares at morning in opening of market .
What is Dealing in Share Market ?
Ans : Dealing means Purchase and sale of shares in Stock
exchange .
Let us Understand it with example
Share market start at 9:15 Am and Close at 3:30 PM
.Between this Period huge no of trading done i.e. Including
buy and sell of shares of different Co .
One invest in Infra Sector like L and T which is Growing or
in Pharma Sector like Sun Pharma which is growing .
One invest when it is Going down and sell keeping time
when Shares is growing of Particular Co.
What is After Hour deal in Stock market?
Ans :The Stock Market of India close at 3:30 Pm . After this
deal can also be made i.e. Buy and Sell of Shares but that
transaction is dated the next day known as an after Hour
deal in stock market . i.e. Transaction will be dated
tomorrow if market close today at 3:30 Pm then dealing is
made .
Let us Understand it with example:
Like Rahul is a Investor . He invest in a Market suppose
stocks listed in BSE . One day Rahul is late and he invest at
3:35 in one stock of Reliance Green Fund .Since market is
close at 3:30 . Rahul can buy. Similarly Amit sell stock of
Birla Sun Life at 3:40 Pm .Now Both buy of Rahul which he
buy after 3:30 and Amit sell after 3:35 is dated at next day
i.e. Tomorrow . This feature is called
After an Hour deal .
What is over the Counter Market ?
Ans : Over the Counter Market is refer to marketplace
outside the main stock market .
Let us Understand it with example :
In India Main stock exchange is NSE i.e. National Stock
Exchange . Place Outside the NSE i.e. National Stock
exchange i.e. Inside Campus and Outside Campus is
referred as Over the Counter Market .
What is Yearlings in Stock Market ?
Ans : Facts about Bonds
Bonds are issued by Co to raise money from market in
behalf of security or crucial thing of Co Given to client and
money is repay at Particular time Interval with interest or
No interest depend upon Bond types client has .
Now coming On Yearlings
Bonds which are issued for Twelve Month terms is called as
Yearlings . These are issued mainly by local authorities like
Municipal Co .
Like Bhopal MCD issue bonds for 12 Month .Bhopal MCD
is a local authority of Bhopal District . Now Bonds issued by
bhopal MCD motive is to raise Capital from Public and in
behalf MCD provide securities paper .And MCD repay with
interest to bhopal public who take bonds at particular time
period .
What is Proxy in Share Market ?
Ans : Proxy in Share market means any person who vote on
another person behalf if another person is unable to attend
shareHolder meetings.
Let us Understand with example
Co A is a Investment Co .Co A has numerous Shareholders .
Shareholders are Rahul ,Raj ,Amit and Anup etc . Now Co
A has one day Shareholder meeting. Shareholder meeting
for Future Prospects of Co and how to increase More Profit
also. And in that meeting all are Present except Amit . Amit
is absent of some Personal reason. Now Raj will vote in
behalf of Amit in Meeting as no of Votes of shareholder is
necessary at that time to complete for particular
reason(suppose). This is called as Proxy in Share market.
What is Liquidation in Stock Market ?
Ans : Liquidation is a Process in Share market that Convert
prevailing assets to cash . Now assets can be Holdings of an
Individual .It can be Property .It can be resources of an
individual.
Now let us Understand it with example
Mr A is a Investor . He invest in market . He has one Flat in
Juhu Mumbai which cost Rs 50 Lakh .This 50 lakh is
Current value of Flat in Juhu Mumbai . Now Mr A is a
regular investor in market and wants to invest in Growing
sector like Infra and Clean Energy for which he needs
Money .Now he will sell his asset i.e. Flat and convert into
Rupee and then invest in market .
This is called as Liquidation in Share Market .
What is Bed and Breakfast Deal ?

Ans : Bed and Breakfast deal means sale of share and

repurchase of share on another day .
Now let us Understand it with example:
Rahul is a Investor invest in a market .He sell 50 Shares of
Sundaram Finance he has with him today .Now again
tomorrow he repurchase Sundaram Finance Shares .No of
Shares is 30 Suppose of Sundaram Finance he Purchase.
This is called Bed and Breakfast deal .
Bed and Breakfast deal is sale and repurchase of Shares of
Particular Co on another day .
What is Net Change in Stock Market ?
Ans : Net change in Stock Market is Previous day Closing
Price of Stock Exchange and last traded price i.e. Last
Current Traded Price .
Let us Understand it with example
SENSEX which is list of BSE Top 30 High valued Co .
SENSEX Suppose (assume ) Thursday closing Price was
31,000 . And last Traded price at particular Time slot is
31,138 (assume ). Then Net Change will be
31138-31000=138 is Net change From Closing day Price of
Thursday and last traded price of Friday .
What is DEBT to EQUITY ratio ?
Ans: A Measure of any Individual Co Borrowing to the
Shareholder Funds .
Let us Understand with example
Co A is Pharma Co . Co A has borrowing From Public
through Bonds and From Foreign Investors also say 1,00,000
Rs and Co A has 50 Shareholders (assume ) whose Fund is
50,000 in total .Then Debt to Equity Ratio will be
1,00,000/50,000 which is equal to 2 .

What is Gilt edge Stocks ?

Gilt edge Stocks is stocks which are regarded as extremely
reliable investments . These are Stocks of Best Quality or
Best rating Stocks .Gilt edge Stocks is British origin name .
These are issued by Bank of England .
Let us Understand it with example and have Parallel theory
Suppose Co A of Uk has stocks or shares on Green Energy
which is continuous show Good Growth and these result of
high rating of Stock CoA stock . Co A Green Energy Stock is
of Best Quality .
Similar to Indian Sector Stocks
L and T i..e Larson and Turbo an Infra Major stocks which
is showing Continuous graph and Infra Sector has high
rating on L and T stocks . This is reason it is reliable
investment.
These stocks is called as Gilt edge Stocks .
What is Bubble in Stock Market ?
Ans : A Sharp rise in share Price substantial rise which is
like a Bubble and this Bubble is expected to Sudden Burst .
This is Bubble in Stock Market .
Let us Understand it with example
SENSEX i.e. Which is Combination of Top 30 High valued
Companies Under BSE rise high due to unexpected reasons
.This rise is exceptionally high and this is Bubble of SENSEX
This rise may fall drastically in Sudden . Thus Bubble is not
Good a Market Sign .
What is New Issue in Stock Market ?
Ans : New Issue in Share Market is share which is offered to
the Public or share which is in Public Domain now for the
First time to be listed on the Stock exchange is called as New
Issue in Stock Market .
Let us Understand it with example
New Issue is also known as IPO i.e. Initial public Offer .
ABC co is leading Pharma Sector Co but still it is not listed
in share Market .Now ABC Co think to offer IPO or New
issue to Public to get listed in Market. Co ABC offer shares
and Public subscribe and it Get listed in Market .
This first time offer is called New issue or IPO i.e. Initial
Public offering.
What is Open Ended Scheme in Stock Market ?
Ans : An Open ended Fund or Scheme regarding Fund is
One which is available for Subscription and repurchase on a
Continuous Basis .
Let us Understand with example
A is investor which has SBI Magnum Fund which follow
Open ended Scheme of Stock Market .SBI Magnum Fund
can be subscribed i.e. Registered and it can be repurchased
again it has feature and on continuous basis .One can
subscribed and repurchase sell again . Again Subscribed
repurchase and sale (this is assumption).This is continuous
process .
What is programme Trading ?
Ans : Program Trading in Stock Market is a Technique
which uses decision Rules .Decision rules is programmed on
computer .This is done to take trading of shares decisions
automatically.
Let us Understand with examples
A is a Investor invest in a Stock market since long duration.
He earlier uses traditional method of trading shares
through regular i.e. With help of Brokers and Direct which
he do trade shares on Computer Online .Now A heard
about Programmed Trading service .A install this facility in
his Computer and Decision of trading of Shares is
programmed on his Computer i.e. His decisions on share
trading and Process executes Further .

What is Rigged Market (India Terms imp )?

Ans : Rigged Market is a share Market in which
Manipulation of shares is done .This Manipulation in prices
is done to attract (buyers ) and sellers .
Rigged means Furnish .
Now Let us understand it with example
SENSEX is moving Up suppose at 31200 Points .Now
Sudden on Monday we see that market which is rising
steadily from past week move downward and reason is
unpredicted .This is manipulation of Price which Point can
also be identified from these unpredicted fall .As it will
attract investors to invest as market is low and then
simultaneously when market will Go up.This is called
Rigged Market
Conditions.
What is Lame Duck in Stock Market ?
Ans Lame Duck is a Person who has defaulted on his or her
debts (i.e. UDHAR in hindi) or has Gone Bankrupt due to
market is known as Lame Duck in stock Market. The Phrase
is Origin From London Stock Exchange .Origin Trace Back
in 1700s Concept of Lame Duck . It is used to describe
Individual
who were Ineffective Traders .Ineffective Traders refers to
us or investors who invest in market also who buy and sell
share in market and has debt and Got bankrupt due to
market Condition.
Let us Understand it with example
Rahul is a Investor invest in a market .He has Huge money
invested in market in different shares of different Co . Now
Suppose Economic Crisis hit market .Rahul has debt already
and due to Crisis he won't able to pay at time as his money
stagnant and loss due to market .So he become defaulter or
bankrupt i.e. Debt ridden defaulter due to Market hit Crisis
.
Differentiate Open Ended and Close Ended Fund?

S.NO Open Ended Fund Close Ended Fund

A One can buy and sell Here Unit Capital
Units on a required For Close
continuous basis and ended Fund is fixed
allow Investors to and in Close ended
enter and exit From Fund they sell
market as Per their specific Unit of Co
convenient . shares .
B The Units can be In Close Ended
Purchased and Sold Funds Unit can not
after the Initial be Purchased and
offering (i.e. In case Sold after its Initial
of New Funds ) offering i.e. (in case
of new Funds )
What is Call Option in Stock Market ?
Ans Let us Understand with example
There are Person A and Person B .Person A has Shares and
invested in share Market .Person B has shares and invested
in share market . Now Share Cost of Co ABC is Rs 800
(assume ).Person B has Co ABC shares. Now it is expected
that Share of Co ABC will raise to 1200 as Per market
related Factors in next One Month .Person A deal with with
Person B that he will buy Share From it at today's Price
level i.e. Suppose 700INR. And this price A will Pay to B
after 1 Month and take shares. Only A will give some token
money to book shares From B .
This Process is called Call option .
This Token Amount is called Premium also .
What is difference between Private and Public Placement?
Private Placement Public Placement
In Private Placement sale of In Public Placement Bonds sale
Bonds to relative Small Number of Bonds to Public i.e.It include
of Selected Investors. large Number of Investors .
This is to way of raising Capital This is Normal way of raising
.Since this investor are Premium Capital in Public Placement .
investors so raise Capital is
more trustee and secure.
These are usually Large These are Normal Public who
Investors i.e. Small like Big get Bonds in exchange Of
Banks or Big Businessman money .
What is Put Option in Share Market ?
Ans : Let us Understand it with example
There are Two Persons Builder and Customer . Builder has to
sell Home to Customer . Now Builder Come to Customer as
Customer has to buy Flat. Now Builder Give Customer INR Rs
1 Lakh and book the Flat .Builder Give INR 1 Lakh and book
Flat .Now Builder sign in Paper to Customer that Flat is Fixed
and You have to Pay 50 lakh For Flat within 1 Month . Then
Suppose Two cases can be derived after 1 Month i.e. (a) Flat
Cost will rise and (b) Flat Cost will Fall .
(a) Suppose Flat Cost Rise to 70 Lakh then contract Sign Paper
to Customer that Customer has to Pay 50 lakh but here if Price
rises Contractor will face loss 50+1 i.e. 51 lakh and loss will be
70-51 i.e. Equal to 19 lakh . So Contractor will sell this Flat to
another 3rd person not Previous One Customer .
(b) Suppose Flat Cost will fall i.e. 30 lakh Suppose . Now
Builder Gain profit Here i.e. Customer has to pay 51 lakh But
Profit will be 51 -30 i.e. 21 Lakh to Contractor .Contractor Give
Rs 1 Lakh gain profit of 21 lakh in flat Price .So for his
convenience Flat valuation should Go down.
This is right of Seller Not obligation to sell his asset at
Specific Period Of time .
Process derived called Put Option .
What is BIFR ?
Ans BIFR is Board For Industrial and Financial
Reconstruction .It is a agency of Government of India . It is
under Minister of Finance .
AIM of BIFR is
To Determine the Sickness of Co or Industrial Co and assist
in reviving Co and Shut those Co which is continuous Going
loss .This is main motive of BIFR .
I,e, To check Sickness (a) Revive Co which are in verge of
Loss (c) Shut of Co which is in loss from many Years .
What is Standard and Poor CNX NIFTY ?
Ans A Stock Index which is in Support or endorse by
Standard and Poor and Composed of 50 largest stocks which
is Found on the NSE i.e. National Stock Exchange of India
.There are Other Major Stock exchange which must met
following requirements i.e. (a) Market Capitalisation i.e. No
of external shareholders more (b) Liquidity :How ease
money is available or how ease money is possible Get.This is
condition for Inclusion of index .
S and P CNX Nifty has 50 largest Stocks of Co .S and P HQ
is Famous For stock Index.
S and P HQ is NewYork USA .
What is Crash CURCIUTS in stock markets ?
Crash CURCIUTS in stock market refer to Stock Market
Crash . This result to down fall of Prices level . These result
to lack of Investors . This will affect whole market i.e. Sellers
and buyers associated to the market .
Why and How Stock Market Come into existence ?Why
Co Join Stock exchange ?
Stock Market come into existence because Co or
Business needed Them .
Why needed them will understand in Upcoming lines ?
Now here we Consider example of Infosys . Infosys is a
IT major Co .
Infosys started in Year 1981 by NR MURTHY and his
6 Colleagues . Infosys Started only with INR 10,000
corpus money . Infosys with this Money easily start its
IT business but with this Corpus Infosys can't expand
its IT business to Pan India and outside . They need
More Money to expand its business.
Now Expanding of Infosys Sector Business can be
done by following ways :
(a) Profit of Co in First Phase i.e. During 1981 of start of
Business is not so high to expand its Foot or Business in
Pan India.So this idea won't Work Properly .
(b) Take a Debt Loan from Bank and Infosys had to Pay
with Interest and amount to Bank . But this Debt loan
Process won't work When Co is Facing loss then how Co
get Profit and pay debt back to Bank. As Loan is Big
Issue For Co. When Co is facing loss .
(c) Now when Co reaches Venture Capitalist For Fund
help and in exchange Co will Provide Venture Capitalist
stake in Co shares .This is also Not Prefer way for Co .
What is Venture Capitalist or Venture Capitalism ?
Venture Capitalism is understand by Following example
A is suppose TATA which is Old reputed and high valued
Co . TATA has habit to help startup Co in giving
Technologies assist or Fund required to work well .TATA
invest in Co ABC which is start up and TATA say I will
Give ABC fund but on 2 request Fulfil from ABC i.e.
(a) ABC will give stake of 49% to TATA
(b) ABC will return money within Five Years whole
amount that what TATA give .
So here TATA is called Venture Capitalist and Process of
Invest old valued Co to startup on basis of Following Pre
Conditions is called venture Capitalism.
Now Venture Capitalism is also not Prefer way as Co
have to Give stake to high value Co TATA.
This is More Prefer way For Co to expand Business or
expand their Foot print

Infosys can raise funds From Public by issuing

Shares . Infosys Listed in stock exchange in 1993 .
First every Co to get listed in stock exchange have to
release IPO i.e. Initial Public Offer
Shares are Offered to public to get listed in stock
exchange . This is First Offer in Stock Exchange .
Public First Subscribed shares then buy shares and
then sell shares looking time and profit and
Investment he done on shares .On Investment basis he
Get Profit .
IPO is also Known as Primary Market .
One can also Buy and sell shares through online
Broker Platform like ICICI Direct and SHAREKHAN
etc.
Note : 99% of People invest in Non worthy stocks still
which will finally erode their investment as they get
less return .So choosing evergreen stocks of Co is
necessary .
If we invest more in evergreen stocks we will Get more
Good Return and if we Invest less in evergreen stocks
we Get less return.
So (4) Thus help to raise More Capital For Co and
public also Get Profit From these Evergreen Stocks .
This Method is high prefer For Co .
SHARE MARKET RISE OR FALL Parameters
Rise or Fall of Share Price will depend upon (a)
Buyers and (b) seller investors in share market.
What is Last Traded price Funda ?
Ans Last Traded Price is price who has share decided
to sell it to buyer at an agreed Price .Last Traded
Price always Fluctuates in Seconds. As Million of
Customers who sell and then buy shares Per second in
Country and Outside Country so LTP changes per
Second.
Share Market of India start at 9:15 Am and it close at
3:30 Pm . LTP is counted From 9:15 to 3:30 since each
second one individual sell and then buy shares .
Now , When In a Particular day there are More
Person who want to buy shares and when less share to
sold then it will help to rise in Price or SENSEX or
share market.
Let us understand it with example
Assume (24th June ) 50000 people who want to buy
shares ,when any one buy shares it will bring liquidity
in market and when 20000 People to sell shares i.e.
Less people to sell i.e. Money will not taken from
market in simple words . This would result rise in
price of SENSEX or share market
Now ,2nd Condition Suppose on 24th June 5000 People
want to sell shares i.e.it will take money From market
and on 24th June 2000 People want to buy shares i.e.
Less money Come into market .So ,Money is Coming
less and Going More in simple words . This would rise
fall in Price of SENSEX or Share Market .
Now 3rd Condition is Balance Situation when Market
neither rise nor fall it maintain a Fixed Position i.e.
Constant Position in market i.e. It started in 31000
and end in 31100 with neither so much rise nor fall . It
means Buyer and seller maintain a healthy position in
market .
Extreme in market is Not Good but rise in situation is
Good .
What is BenchMark Index?
BenchMark Index is a Indicator or Index which indicate a
Point of reference for evaluating a Fund's Performance. It is
Indicator to evaluate Fund Quality .
Let us Understand with example
Indicator of Fund can be (a) No of Buying and (b) No of
Selling of Funds (c) No of Client of Funds (d) Funds Showing
Growth or Not (a) Short and (b) longer Period .These (a)
,(b),(c) and (d) and others is reference of Indicating Points or
highlighted Points in evaluating Fund Performance .
This is called BenchMark Index.
What is Benefit to Cost Ratio in Stock Market ?
Benefit to cost Ratio is used to identify the relationship
between Cost and benefit of Particular Stock or Shares in
stock market .
Let us Understand with example
Co A has working on Infra Sector .Co A has issue Shares
which costs 10000( Total ) i.e. Co issue total shares of
denomination 10000Rs . Now Co A huge buyers buy Co A
shares and whole sell of Shares is Rs 15000 denomination i..e
Total Subscribers included . Now Here Benefit From Shares
For Co A will be 15000-10000 i.e. It is equal to 5000(Profit )
of shares issued .
Thus (Benefit /Cost ) will be equal to 5000/10000 i.e. 50% or
ratio will be (1/2) .
What is AMFI ?
AMFI is Association of Mutual Funds in India .