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| Stock Market |
Lesson 1: What is the Stock Market?
Imagine you open a company called ABC Pvt. Ltd.
You need ₹10 lakh to grow, but you only have ₹5 lakh. Instead of taking a loan, you divide ownership into small parts (shares) and sell them.
Example:
Company value = ₹10 lakh
Total shares = 10,000
Value per share = ₹100
If you buy 100 shares, you own a small part of the company.
The stock market = place where these ownership pieces are bought and sold.
In India:
National Stock Exchange of India (NSE)
Bombay Stock Exchange (BSE)
Lesson 2: Basic Terms You Must Know
Stock / Share
Ownership in a company.
Example:
Reliance Industries share
Tata Consultancy Services share
Investor vs Trader
Investor
Holds for years
Focus = business growth
Example:
Buy at ₹100 → hold 5 years → sell at ₹500
Trader
Holds for minutes, days, weeks
Focus = price movement
Example:
Buy ₹100 → sell ₹105 same day
Bull Market 🐂
Market moving UP.
People optimistic.
Example:
NIFTY is rising continuously.
Bear Market 🐻
Market moving DOWN.
People fearful.
Lesson 3: How Money is Made
Method 1: Capital Appreciation
Buy: ₹100
Sell: ₹150
Profit = ₹50
Method 2: Dividend
Some companies share profits.
Example:
You own 100 shares.
The company gives a ₹5/share dividend.
Income = ₹500
Lesson 4: Market Participants
Retail Traders → You & me
Institutions → Mutual funds
FIIs → Foreign investors
DIIs → Indian institutions
Big players move markets more.
Lesson 5: Market Timing
Indian market:
Pre-open: 9:00–9:15 AM
Normal: 9:15–3:30 PM
First Rule (Most Important)
Do NOT start with real money immediately.
First:
Learn basics
Practice
Paper trade
Small capital
Scale later
Many beginners lose because they jump directly into intraday/options.
Homework (Day 1)
Answer these:
- Difference between an investor and a trader?
- If the company value = ₹20 lakh and shares = 10,000 → share price?
- Bull market mean?
Tomorrow we’ll do:- Demat account, broker, NSE/BSE, order types, and how buying actually works.
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