Category: Introduction to Stock Markets
-
Chapter 4. The IPO Markets (Part 1)
Overview The initial three chapters set the background on basic market concepts you need to know. It becomes necessary to address a fundamental question at this stage – Why do companies go public? A good understanding of this topic lays a sound foundation for all future topics. In this and the next chapter, we will…
-
Chapter 3. Market Intermediaries
Overview Many corporate entities work in tandem to ensure transactions in the market flow smoothly. Right from the time you log in to a trading terminal (let’s say to buy shares), to the time these shares hit your DEMAT account, market intermediaries work seamlessly together to ensure your transactions flow without any hiccups. These entities…
-
Chapter 2: Regulators and Key Players in the Stock Market
What is the stock market? In the previous chapter, we established that investing in equities is vital to generate inflation-beating returns. Having said that, how do we go about investing in equities? Before we dwell further into this topic, it is essential to understand the market ecosystem and the many different entities involved in making…
-
Chapter 1: Why should anyone invest?
Before we address the above question, let us understand what would happen if one chooses not to invest. Assume you earn Rs.50,000/- per month, and you spend Rs.30,000/-towards your day-to-day living; this can include expenses like housing, food, transport, shopping, medical, etc. The balance of Rs.20,000/- is your monthly surplus. For the sake of simplicity,…