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CONTENTS FOR SHARE MARKET
1. INVESTMENT BASICS
o What do you mean by an Investment?
o Why should one Invest?
o When to start Investing?
o What care should one take while investing?
o What is meant by Interest?
o What factors determine interest rates ?
o What are various options available for investment ?
o What are various Short-term financial options available for investment ?
o What are various Long-term financial options available for investment ?
o What is meant by a Stock Exchange?
o What is an ‘Equity’/Share?
o What is a ‘Debt Instrument’?
o What is a Derivative?
o What is a Mutual Fund?
o What is an Index?
o What is a Depository?
o What is Dematerialization?
2. SECURITIES
o What is meant by ‘Securities’?
o What is the function of Securities Market?
o Which are the securities one can invest in?
2.1 REGULATOR
o Why does Securities Market need Regulators?
o Who regulates the Securities Market?
o What is SEBI and what is its role?
2.2 PARTICIPANTS
o Who are the participants in the Securities Market?
o Is it necessary to transact through an intermediary?
o What are the segments of Securities Market?
3. PRIMARY MARKET
o What is the role of the ‘Primary Market’?
o What is meant by Face Value of a share/debenture?
o What do you mean by the term Premium and Discount in a Security Market?
3.1 ISSUE OF SHARES
o Why do companies need to issue shares to the public?
o What are the different kinds of issues?
o What is meant by Issue price?
o What is meant by Market Capitalization?
o What is the difference between public issue and private placement?
o What is an Initial Public Offer (IPO)?
o Who decides the price of an issue?
o What does ‘price discovery through Book Building Process’ mean?
o What is the main difference between offer of shares through book building and offer of shares through normal public issue?
o What is Cut-Off Price?
o What is the floor price in case of book building?
o What is a Price Band in a book built IPO?
o Who decides the Price Band?
o What is the minimum number of days a bid should remain open during Book- building process?
o Can open outcry system be used for book building?
o Can the individual investor use the book building facility to make an Application?
o How does one know if shares are allotted in an IPO/offer for sale? What is the Timeframe for getting refund if shares not allotted?
o How long does it take to get the shares listed after issue?
o What is the role of a ‘Registrar’ to an issue?
o Does NSE provide any facility for IPO?
o What is a Prospectus?
o What does ‘Draft Offer document’ mean?
o What is an ‘Abridged Prospectus’?
o Who prepares the ‘Prospectus’/‘Offer Documents’?
o What does one mean by ‘Lock-in’?
o What is meant by ‘Listing of Securities’?
o What is a ‘Listing Agreement’?
o What does ‘Delisting of securities’ mean?
o What is SEBI’s Role in an Issue?
o Does it mean that SEBI recommends an issue?
o Does SEBI tag make one’s money safe?
3.2 FOREIGN CAPITAL ISSUANCE
o Can companies in India raise foreign currency resources?
o What is an American Depository Receipt?
o What is an ADS?
o What is meant by Global Depository Receipts?
4. SECONDARY MARKET
4.1 INTRODUCTION
o What is meant by Secondary market?
o What is the role of the Secondary Market?
o What is the difference between the Primary Market and the Secondary Market?
4.1.1 STOCK EXCHANGE
o What is the role of a Stock Exchange in buying and selling shares?
o What is Demutualisation of stock exchanges?
o How is a demutualised exchange different from a mutual exchange?
o Currently are there any demutualised stock exchanges in India?
4.1.2 STOCK TRADING
o What is Screen Based Trading
o What is NEAT?
o How to place orders with the broker?
o How does an investor get access to internet based trading facility?
o What is a Contract Note?
o What details are required to be mentioned on the contract note
o What is the maximum brokerage that a broker can charge?
o Why should one trade on a recognized stock exchange only for buying/selling Shares?
o How to know if the broker or sub broker is registered
o What precautions must one take before investing in the stock markets?
o What Do’s and Don’ts should an investor bear in mind when investing in the Stock markets?
4.2 PRODUCTS IN THE SECONDARY MARKETS
o What are the products dealt in the Secondary Markets?
4.2.1 EQUITY INVESTMENT
o Why should one invest in equities in particular?
o What has been the average return on Equities in India?
o Which are the factors that influence the price of a stock?
o What is meant by the terms Growth Stock / Value Stock?
o How can one acquire equity shares?
o What is Bid and Ask price?
o What is a Portfolio?
o What is Diversification?
o What are the advantages of having a diversified portfolio?
4.2.2. DEBT INVESTMENT
o What is a ‘Debt Instrument’?
o What are the features of debt instruments?
o What is meant by ‘Interest’ payable by a debenture or a bond?
o What are the Segments in the Debt Market in India?
o Who are the Participants in the Debt Market?
o Are bonds rated for their credit quality?
o How can one acquire securities in the debt market?
5. DERIVATIVES
o What are Types of Derivatives?
o What is an ‘Option Premium’?
o What is ‘Commodity Exchange’?
o What is meant by ‘Commodity’?
o What is Commodity derivatives market?
o What is the difference between Commodity and Financial derivatives?
6. DEPOSITORY
o How is a depository similar to a bank?
o Which are the depositories in India?
o What are the benefits of participation in a depository?
o Who is a Depository Participant (DP)?
o Does one need to keep any minimum balance of securities in his account with his DP?
o What is an ISIN?
o What is a Custodian?
o What is a De-mat Account?
o How can one convert physical holding into electronic holding i.e. how can one De-materialize securities?
o Can odd lot shares be de-materialized?
o Do dematerialized shares have distinctive numbers?
o Can electronic holdings be converted into Physical certificates?
o Can one dematerialize his debt instruments, mutual fund units, government securities in his de-mat account?
7. MUTUAL FUNDS
o What is the Regulatory Body for Mutual Funds?
o What are the benefits of investing in Mutual Funds?
o What is NAV?
o What is Entry/Exit Load?
o Are there any risks involved in investing in Mutual Funds?
o What are the different types of Mutual funds?
o What are the different investment plans that Mutual Funds offer?
o What are the rights that are available to a Mutual Fund holder in India?
o What is a Fund Offer document?
o What is Active Fund Management?
o What is Passive Fund Management?
o What is an ETF?
8. MISCELLANEOUS
8.1 CORPORATE ACTIONS
o What are Corporate Actions?
o What is meant by ‘Dividend’ declared by companies?
o What is meant by Dividend yield?
o What is a Stock Split?
o Why do companies announce Stock Split?
o What is Buyback of Shares?
8.2 INDEX
o What is the Nifty index?
8.3 CLEARING & SETTLEMENT AND REDRESSAL
o What is a Clearing Corporation?
o What is Rolling Settlement?
o What is Pay-in and Pay-out?
o What is an Auction?
o What is a Book-closure/Record date?
o What is a No -delivery period?
o What is an Ex-dividend date?
o What is an Ex-date
o What recourses are available to investor/client for redressing his grievances?
o What is Arbitration?
o What is an Investor Protection Fund?
9. CONCEPTS & MODES OF ANALYSIS
o What is Simple Interest?
o What is Compound Interest?
o What is meant by the Time Value of Money?
o How is time value of money computed?
o What is Effective Annual return?
o How to go about systematically analyzing a company?
o What is an Annual Report?
o Which features of an Annual Report should one read carefully?
o What is a Balance Sheet and a Profit and Loss Account Statement?
o What is the difference between Balance Sheet and Profit and Loss Account Statements of a company?
o What do these sources of funds represent?
o What is the difference between Equity shareholders and Preferential shareholders?
o What is the difference between secured and unsecured loans?
o What is meant by application of funds?
o What do the sub-headings under the Fixed Assets like ‘Gross block’
o ‘Depreciation’, ‘Net Block’ and Capital-Work in Progress’ mean?
o What are Current Liabilities and Provisions and Net Current Assets in the balance sheet?
o How is balance sheet summarized?
o What does a Profit and Loss Account statement consists of?
o What should one look for in a Profit and Loss account?
10. RATIO ANALYSIS