SUBJECT:SECURITY ANALYSIS STD: SYBFM DIV:A LECTURER: SHRUTI MAM GROUP NO:6

GROUP MEMBERS
1. 2. 3. 4. 5.

MAHEK CHHEDA(07) KAUSHAL DOSHI(11) DHRUVESH GUDHKA(15) RUSHABH SHETH(46) PREM SONI(52)

BULL & BULL MARKET

y Speculator in the stock market in which stock price are

rising y Buys the security to sell it in future when the prices go up.
y Tejiwala (Rise in the price)

BEARS & BEARS MARKET

y Speculator in the stock market in which stock prices

are falling y Buys the securities at a lower price and sells it at higher price to get a higher return or profit y Mandiwala (fall in the price)

ARBITRAGE & ASK FOR OFFER

y Arbitrage: The simultaneous purchase of a security on

one stock market and the sale of the same security on another stock market at prices which yield a profit. y Ask or Offer: The lowest price at which someone is willing to sell the security. When combined with the bid price information, it forms the basis of a stock quote.

BLOCK TRADES & BOOK

y Block Trades: Trades greater than or equal to 10,000

shares in size and greater than or equal to $100,000 in value. They are also known as block deals which take place only in the first half an hour after opening of stock market. y Book: An electronic record of all pending buy and sell orders for a particular stock.

BROKER OR BROKERAGE FIRM

y Broker or Brokerage Firm: A securities firm or a

registered investment advisor affiliated with a firm. Brokers are the link between investors and the stock market. y E.g.: Share khan, Motila Oswal, Angel, etc.

CLEARING CORPORATION
y Clears and settles all transaction. y Provides financial guarantee for all transaction

executed y Provides risk management function

CAPITAL GAIN OR LOSS

y Capital Gain or Loss: Profit or loss resulting from the

sale of certain assets classified under the federal income tax legislation as capital assets. y This includes stocks and other investments such as investment property.

COMMODITY MARKET
y Products used for commerce that are traded on a

separate, authorized commodities exchange. y Commodities include agricultural products and natural resources such as timber, oil and metals. y Commodities are the basis for futures contracts traded on these exchanges. y Eg: MCX, NCDEX.

OVER THE COUNTER (OTC) MARKET

y The market maintained by securities dealers for issues

not listed on a stock exchange. y Almost all bonds and debentures, as well as some stocks, are traded over-the-counter in India. y An OTC market is also known as an unlisted market.

PORTFOLIO & SECURITIES

y Portfolio: Holdings of securities by an individual or

institution. A portfolio may include various types of securities representing different companies and industry sectors. y ecurities: Transferable certificates of ownership of investment products such as notes, bonds, stocks, futures contracts and options.

P/EP/E- RATIO & PENNY STOCK

y Price-Earnings (P/E) Ratio: A common stock's last

closing market price per share divided by the latest reported 12-month earnings per share. This ratio shows you how many times the actual or anticipated annual earnings a stock is trading at. y Penny Stock: Low-priced speculative issues of stock selling at less than Re1.00 a share.

FUTURES & OPTIONS ( f&O) (f&O)

y Option: The right, but not the obligation, to buy or

sell certain securities at a specified price within a specified time. A put option gives the holder the right to sell the security, and a call option gives the holder the right to buy the security. y Option Type: A call or put contract. y Futures: Contracts to buy or sell securities at a future date.

LISTED, UNLISTED & DELIST

y Listed Stock: Shares/ stock of an issuer company that

are traded on a stock exchange. y Unlisted: A security not listed on a stock exchange, but traded on the over-the-counter market. y Delist: the removal of a security's listing on a stock exchange. This is done when the security no longer exists, the company is bankrupt, the public distribution of the security has dropped to an unacceptably low level, or the company has failed to comply with the terms of its listing agreement.

SHORT SELLING & STOP LOSS

y 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, cover the outstanding short, and realize a profit from the difference. y Stop Loss: It s a specific price at which the shares hold by the investor will automatically sell off in the market. This is used to control the losses of the investor.

LOWER & UPPER CIRCUIT

y Lower Circuit: It s the lower limit of any stock price.

After falling to that limit trading in that stock stops for that day. y Upper Circuit: It is the higher limit of a stock Price. After reaching that limit trading in those shares stops for that day.

HEDGE, INDEX & DEMAT

y Hedge: A strategy used to limit investment loss by

making a transaction that offsets an existing position. y Index: A statistical measure of the state of the stock market, based on the performance of stocks. E.g.: Sensex, Nifty50, etc. y Dematerialization: It is a process by which an investor gets his physical shares converted into electronic shares.