Introduction to Stock Markets - Zerodha

ZERODHA Introduction to Stock Markets ZERODHA.COM/VARSITY TABLE OF CONTENTS 1 The Need to Invest 1 1.1 Why should one invest 1 1.2 Where to invest 3 1.3 Fixed income instruments 5 1.4 Equity 5 1.5 Real estate 6 1.6 Commodity - Bullion 6 1.7 A note on investments 7 1.8 What are the things to know before investing 7 Regulators 9 2.1 What is a stock market. 9 2.2 Stock market participants and the need to regulate them 10 2.3 The Regulator 11 Financial Intermediaries 15 3.1 Overview 15 3.2 The Stock broker 16 3.3 Depository and Depository Participants 17 3.4 Banks 18 3.5 NSCCL and ICCL 18 The IPO Markets - Part 1 21 4.1 Overview 21 4.2 Origin of a business 21 The IPO Markets - Part 2 32 Overview 32 2 3 4 5 5.1 5.2 Why do companies go public 33 5.3 Merchant bankers 34 5.4 IPO sequence of events 35 5.5 What happens after the IPO 36 5.6 Few IPO Jargons 36 5.7 Recent IPO’s in India 37 6 The Stock Markets 40 6.1 Overview 40 6.2 What really is the stock market . 41 6.3 What moves the stock . 42 6.4 How does the stock get traded . 44 6.5 What happens after you own a stock . 45 6.6 A note on the holding period 45 6.7 How to calculate returns . 46 6.8 Where do you fit in . 47 The Stock Markets Index 50 7.1 Overview 50 7.2 The Index 51 7.3 Practical uses of the Index 51 7.4 Index construction methodology 53 7.5 Sector specific indices 57 8 Commonly used Jargons 59 9 The Trading Terminal 65 Overview 65 7 9.1 9.2 The Login Process 66 9.3 The Market Watch 66 9.