Stock Market Basics

Investing in stocks, although risky, can be managed effectively.

Investors, unlike gamblers, aim to make strategic and informed decisions based on research and analysis.

Investing in real estate, specifically land or a house, with the expectation of profiting from its future appreciation.

A fixed asset, meaning it doesn't easily change into liquid cash. Selling a house or land can take a long time and doesn't guarantee a quick sale.

The potential challenges of buying a house or land, including maintenance, legal disputes, and unauthorized occupation.

The true value of a piece of land can be unclear, influenced by brokers who might inflate prices.

Stocks listed on the Indian Stock Exchange that may not be worth investing in all the time, due to market volatility and other economic factors.

The ability to choose the right stocks that will perform well, especially during periods of economic downturn.

Investing requires knowledge and skill, navigating the fluctuating financial markets, and understanding when to buy and sell.

The foundation knowledge needed to understand the financial markets, including key concepts and principles.

The price at which a share is last bought and sold in the market.

When the demand for a share is higher than the supply, pushing the price up.

When the supply of a share is higher than the demand, dragging the price down.

Companies with consistently growing profits, considered less risky investments.

The process of buying and selling shares in the stock market.

An initial public offering (IPO) is the first time a company sells its shares to the public.

The increase in value of a share over time, including dividends.

A portion of a company's profits distributed to shareholders.

The total value of a company, calculated by multiplying the number of shares by the current share price.

The process of buying and selling stocks in a public marketplace, typically a stock exchange.

A unit of ownership in a company, representing a claim on the company's assets and profits.

A financial market where securities, such as stocks and bonds, are bought and sold.

A company's financial performance, including its revenues, expenses, profits, and cash flow.

A type of stock trading where traders vocally announce bids and offers in a crowded trading floor.

The value of a share of stock, determined by market forces of supply and demand.

The total value of a company's assets, minus its liabilities.

The portion of a company's profit allocated to each outstanding share. It's calculated by dividing the company's annual profit by the number of shares.

A financial ratio that relates a company's share price to its earnings per share. It indicates how much investors are willing to pay for each rupee of earnings.

A financial year that starts in April and ends in March, most companies follow this.

A three-month period within a financial year. Companies report their financial results quarterly.

The time period from April to June within a fiscal year. For example, April 2023 to June 2023 is Quarter 1 for Financial Year 2024 (Q1 FY 2024).

The time period from July to September within a fiscal year. For example, July 2023 to September 2023 is Quarter 2 for Financial Year 2024 (Q2 FY 2024).

The time period from October to December within a fiscal year. For example, October 2023 to December 2023 is Quarter 3 for Financial Year 2024 (Q3 FY 2024).

EPS measures the profitability of each individual share of a company by showing how much profit a company generates for every share outstanding.

The Price-to-Earnings (P/E) ratio helps understand the market's valuation of a company's stock in relation to its earnings per share.

The P/E ratio can fluctuate significantly based on factors like market sentiment, industry trends, and company performance.

Market capitalization (market cap) represents the total value of a company's outstanding shares in the market.

A higher P/E does not automatically mean a stock is overpriced, and a lower P/E does not always mean a stock is undervalued. It's important to consider various factors beyond just the P/E ratio.