EQUITY PPT 2022

www.isfm.co.in 23 May 2022

Transaction Charge

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What is Short Selling



What is Short Selling &  Short selling is a trading strategy that s in the price of a Securities. Essentially, a low.  HOW IT WORKS  Short selling involves a three-step proce  1) Borrow shares of the securities, typica  2) Sell the shares immediately at the ma  3) Repurchase the shares (hopefully at a you borrowed them from. After all this, price has fallen, but will have lost mone

How does it works seeks to capitalize on an anticipated decline a short seller is trying to sell high and buy ess. ally from a broker. arket price. a lower price) and return them to whoever you will pocket the difference if the share ey if the price went up.

How Short Selling 102 Sell 1000 Name 415 Quantity 09:40 AM Sell Price 415000 Traded time 414 Turnover Break Even Price Buy Back Price 408 Turnover 408000 Gap price 7 rupees Gross profit 1000*8 = 8000 Traded Time 02:50 pm

Work Note: It is mandatory to cover the short selling on the same day other wise it will go in to the auction. www.isfm.co.in 23 May 2022

What is Auction



What is Auction  Auctions are initiated by the Exchange on behalf o  settlement related reasons. The main reasons are S  and Objections. There are three types of participa  Initiator: The party who initiates the auction proces  initiator.  (b) Competitor: The party who enters on the same  is called a competitor.  (c) Solicitor: The party who enters on the opposite s  is called a solicitor.  The trading members can participate in the Exchan  entering orders as a solicitor. E.g. If the Exchange c  the trading members entering sell orders are called

of trading members for Shortages, Bad Deliveries ants in the auction market. ss is called an side as of the initiator side as of the initiator nge initiated auctions by conducts a Buy-In auction, d solicitors.

IMP Point of Auctio 105 If you fail to giv T + 3 days When it Happen + or – 20% of t Trading settlement Yes, We can by D Price Range Can we avoid auction Is the short selling is allowed Yes, short selling No, We have to Can we book oneself Yes, it is mandato Is this mandatory to cover the same Yes we can try to day Can we cover it in Post market

on ve delivery the day high / Low Delivery Instruction slip (DIS) is allowed in Indian Market wait a silent party ory to cover the same day o cover in it, but it may be or not www.isfm.co.in 23 May 2022

What is Circuit Breake

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Circuit Breaker - Index 107  The Exchange has implemented index-based market-wide circuit breakers in compulsory ro settlement with effect from July 02, 2001. In addition to the circuit breakers, price bands a also applicable on individual securities. Index based Market-wide Circuit Breakers: The index based market-wide circuit breaker system ap at 3 stages of the index movement, either wa viz. at 10%, 15% and 20%. These circuit breakers when triggered bring about a coordinated trading halt in all equity and eq derivative markets nationwide. The market-w circuit breakers are triggered by movement o either the BSE Sensex or the NSE S&P CNX N whichever is breached earlier.

ex olling are x- x- pplies ay quity 23 May 2022 wide of Nifty, www.isfm.co.in

Circuit Breaker - S 108  Daily price bands are applicable on securities as below:  · Daily price bands of 2% (either way) on securities as specified by the Exchange.  · Daily price bands of 5% (either way) on securities as specified by the Exchange.  · Daily price bands of 10% (either way) on securities as specified by the Exchange.  No price bands are applicable on: scrips on which derivative products are available or scrips included in indices on which derivative products are available. In orde to prevent members from entering orders at non-genuine prices in such securities, the Exchange has fixed operating range of 20% for such securities. Price bands of 20% (either way) on all remaining scrips (including debentures, warrants, preference shares etc).

Stock Cir Time When open cuit limit 2 % Any time When new buyer seller put 5% Any time order When new buyer seller put order 10 Any time When new buyer seller put % order er g 15 Any time When new buyer seller put % order www%2.0isfm.cAon.yintime23 MCalyos2in0g2fo2r remaining day

What is ISIN Number



INTERNATIONAL SECURITIES IDENTIFICATION NUMBER SEBI being the National Numbering Agency for India NSDL to allot International Securities Identification Number (IS shares. While allotting ISINs, NSDL observes that: (i) allotted by NSDL does not at any point of time brea uniqueness of ISIN of physical form for the same Sec for a Securities is allotted only when the Securities is NSDL or on receipt of request for ISIN from CDSL. (iii) The numbering system is simple. (iv) The numberin ISIN is in compliance with the structure of ISIN adopte Numbering System of ISIN: The numbering structure f NSDL is of 12 digit alpha numeric string. The first two represent country code i.e. IN (in accordance with ISO third character represents the Issuer

a has permitted Issuer Type Code Allotted SIN) for demat Central A The ISINs Government ach the State Government B curities. (ii) ISIN C admitted to Municipal Corporation D ng system of Union Territories E ed by SEBI. Company, Statutory for securities in Corporation, F o characters Banking O 3166). The Company Mutual Funds including UTI 23 May 2022

What is contract note ?  Contract Note is a confirmation of trade client by a trading member. It imposes a the client and the trading member with trades. It contain the details of trades, s by the authorized signatory.

es done on a particular day on behalf of the a legally enforceable relationship between respect to purchase/sale and settlement of stamped with requisite value and duly signed

What is Corporate Action



Adjustments for Corpora  The corporate actions may be broa cash benefits as follows:  Bonus  Rights  Merger/De‐merger  Amalgamation  Splits  Consolidations  Hive‐off  Extraordinary dividends

ate Actions adly classified under stock benefits and

Corporate Action Simplif  Dividends : Dividends are paid by the company to its shareholders. Div during the year. Dividends are paid on a per share basis. F a dividend of Rs.25 per share. The dividend paid is also ex face value of VEDL was Rs.10/- and the dividend paid was  Few Imp term :  Dividend Declaration Date:  Record Date  Ex Date/Ex Dividend date  Dividend Payout Date  Bonus Issue :  A bonus issue is a stock dividend, allotted by the company t shareholders. The bonus shares are issued out of the reserve receive against shares that they currently hold. These allotments typically come in a fix 1:1, 2:1, 3:1 etc.

fied vidends are paid to distribute the profits made by the company For example, during the financial year 2016-17 VEDL had declared xpressed as a percentage of the face value. In the above case, the s Rs.25/- hence the dividend payout is said to be 250% (25/10). to reward the ves of the company. These are free shares that the shareholders xed ratio such as,

Corporate Action Simplif  Stock Split : The word stock split- for the first time sounds weird but this basis in the markets. What this means is quite obvious – the actually are split .When a stock split is declared by the com value/market capitalization remains the same similar to bon Suppose the stock’s face value is Rs.10, and there is a 1:1 s If you owned 1 share before split you would now own 2 sha  Rights Issue :  The idea behind a rights issue is to raise fresh capital. Howe existing shareholders Think about the rights issue as a second IPO but for a select group of pe shareholders). The rights issue could be an indication of a p can subscribe to the rights issue in the proportion of their share holding. For example 1:4 rights issue means f additional share. Needless to say the new shares under the in the markets.

fied happens on a regular e stocks that you hold mpany the number of shares held increases but the investment nus issue. The stock is split with reference to the face value. stock split then the face value will change to Rs.5. ares after the split. ever instead of going public, the company approaches their eople (existing promising new development in the company. The shareholders for every 4 shares a shareholder owns, he can subscribe to 1 e rights issue will be issued at a lower price than what prevails

Corporate Action Simplif  Buyback of shares :  A buyback can be seen a shares from other investors in the market. Buybacks shares outstanding in the market, however buyback method of corporate restructuring.  Final Analysis of TCS Technologies 2018 ( Return A  1. Buyback Announcement date: 12.06.2018—– S  2. 95 Shares bought at Rs. 1850 means an investm  3. Retail Acceptance Ratio was 100%. i.e. out of 9 Profit on Accepted Shares–23750  4. The final Accepted Shares were taken back on 0  5. Overall we can say a profit of 23750 on an inv 54% Annualized return.

fied as a method for company to invest in itself by buying s reduce the number of k of shares is an important Analysis) Share Price was 1850. ment of 1,75,750. 95 shares, 95 shares have been buyback by the company. 03.10.2018. vestment of 1,75,750 in 3 months which is equivalent to a

Factors Affecting Stock Ma

arket

Factors Affecting Stock Ma Leading Indicator Lagging Indicator Coincident Indicator

arket

Leading Indicators  These typically shift before majo the potential to accurately predi be misleading at times, and shou

or economic adjustments and so have ict future trends. However, these may uld be used with caution.

Leading Indicators…..



Leading Indicators……



Lagging Indicator  These indicators change usually afte are an outcome of ongoing activity. pattern that is in progress rather tha

er the trend has already taken hold and . These indicators are seen confirming a an predict it in advance.

Lagging Indicator