Trend Analysis and Derivative Trading

7/31/2019 Trend Analysis and Derivative Trading

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\red0\green0\blue255;}\viewkind1\viewscale100\par\pard\par\pard\par\pard\par\pard\ql\ul0\nosupersub\cf1\f2\fs31IndianInstituteofPlanningandManagement,NewDelhi\par\pard\par\pard\ql\ul0\nosupersub\cf3\f4\fs31Lakshmishree\ul0\nosupersub\cf4\f5\fs30InvestmentsandSecuritiesPvt.Ltd\par\pard\par\pard\ql\ul0\nosupersub\cf5\f6\fs31Reporton\par\pard\par\pard\ql\ul0\nosupersub\cf6\f7\fs30TrendAnalysisandDerivativeTrading\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28StartDate-15\ul0\nosupersub\cf7\f8\fs18th\ul0\nosupersub\cf2\f3\fs28July2011\par\pard\par\pard\qlFinishDate-15\ul0\nosupersub\cf7\f8\fs18th\ul0\nosupersub\cf2\f3\fs28September,2011\par\pard\par\pard\ql\ul0\nosupersub\cf8\f9\fs52Mi


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rzaLutfulKorim\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28FW/10-12,Sec-FF1\par\pard\par\pard\qlIDNo:D1012FWISBE-B10373-(DEL-3B-DA-3608)\parContactNo:+919555362568\par\pard\par\pard\qlEmailId:\ul0\nosupersub\cf9\f10\[email protected]\par\pard\par\pard\ql\ul0\nosupersub\cf11\f12\fs34Acknowledgement\par\pard\par\pard\qj \ul0\nosupersub\cf12\f13\fs28AsIsumupdraftofmystudy,Iappreciativelyreminiscethe\ul0\nosupersub\cf13\f14\fs28contributionofallthosepeoplewithoutwhosesupportandhelp,this\ul0\nosupersub\cf14\f15\fs28studywouldhaveevertakenitspresentform.\par\pard\par\pard\ql Ithank\u8220?\ul0\nosupersub\cf2\f3\fs28IIPM\u8221?\ul0\nosupersub\cf14\f15\fs28,NewDelhiforgivingmetheopportunitytodomyinternshipat\u8220?\ul0\nosupersub\cf2\f3\fs28LakshmishreeInvestmentandSecuritiesPvt.Ltd\u8221?.\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Ideemitmypleasuretoconveythedeepestofmyheart-fullthankstothemanagementof\ul0\nosupersub\cf2\f3\fs28\u8220?LakshmishreeinvestmentandsecuritiesPvt.Ltd\u8221?\ul0\nosupersub\cf14\f15\fs28,NoidaOfficewhichhasgivenmepermissiontoconductthisparticularstudyon\u8220?\ul0\nosupersub\cf2\f3\fs28TrendAnalysisandDerivativeTrading\u8221?.\par\pard\par\pard\qj\ul0\nosupersub\cf14\f15\fs28Myspecialthanksto\ul0\nosupersub\cf2\f3\fs28Dr.AmitBagga\ul0\nosupersub\cf14\f15\fs28,facultyofIIPM,NewDelhi,torecommendmetojoinat\ul0\nosupersub\cf2\f3\fs28\u8220?LakshmeshreeInvestmentandSecuritiesPvt.Ltd\u8221?\ul0\nosupersub\cf14\f15\fs28formysummertraining,and\ul0\nosupersub\cf2\f3\fs28Mr.RiteshPurohit\ul0\nosupersub\cf14\f15\fs28,Directorand\ul0\nosupersub\cf2\f3\fs28Mr.UmashChanJoshi\ul0\nosupersub\cf14\f15\fs28,RegionalmanagerofDelhiregionat\u8220?\ul0\n

osupersub\cf2\f3\fs28LakshmishreeInvestmentandSecuritiesPvt.Ltd.\ul0\nosupersub\cf14\f15\fs28forguidingmealongwayandprovidingmewiththeconceptualbaseandsecondarydataandfortheirtimelytosuccessfullycompletionofmyinternshipwithinthetimeframe,whohasgivenmetheinitialorientationabouttheorganizationalactivities,whosepatienceandfaithinmyabilitiesalwaysboostedmyconfidence.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28(MirzaLutfulKorim)\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf15\f16\fs36Tableofcontent\par\pard\par\pard{

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\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs281}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter1:ExecutiveSummary}\cell{\ul0\nosupersub\cf5\f6\fs314}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs282}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter2:Introduction}\cell{\ul0\nosupersub\cf5\f6\fs316}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs283}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter3:ResearchObjectivesandMethodology}\cell{\ul0\nosupersub\


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cf5\f6\fs3123}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs284}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter4:SectorOverview}\cell{\ul0\nosupersub\cf5\f6\fs3128}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs285}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter5:CompanyOverview}\cell{\ul0\nosupersub\cf5\f6\fs3138}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs286}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter6:PrimaryFindings}\cell{\ul0\nosupersub\cf5\f6\fs3145}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs287}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter7:AssessmentsoftheInternship}\cell{\ul0\nosupersub\cf5\f6\fs3153}\cell

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\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs288}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter8:Conclusion}\cell{\ul0\nosupersub\cf5\f6\fs3156}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs289}\cell{\ul0\nosupersub\cf14\f15\fs28Chapter9:Bibliography}\cell{\ul0\nosupersub\cf5\f6\fs3159}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf16\f17\fs40Chapt


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er1:\par\pard\par\pard\ql\ul0\nosupersub\cf8\f9\fs52ExecutiveSummary\par\pard\par\pard\ql\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Inmakingdecisionsaboutwhereandwhentotakeaposition,investors,tradersandanalystsusetwodifferentapproaches:fundamentalanalysisandtechnicalanalysis.Fundamentalanalysisistheappreciationoftheeconomicsunderlyingaparticulartrade.Ifyouwanttoknowwheretoinvestandwhy,youusethetechniquesoffundamentalanalysis.Technicalanalysisisconcernedwiththewhenandthehowofplacingmoney.Itdeterminestheoptimaltimingforapositionanditsconclusionsabouthowlongtostayinaparticulartradehavesignificantimportanceforthekindofderivativesstructureonemayusetotakeaposition.Ittriestopredictatrendlikeabullmarketrunandridethattrenduntildatasuggestsatrendreversal(e.g.bulltobearmarket).Trendanalysisishelpfulbecausemovingwithtrends,andnotagainstthem,willleadtoprofitforaninvestor.\par\pard\par\pard Theemergenceofderivativesmarketisaningeniousfeatoffinancialengineeringthatprovidesaneffectiveandlesscostlysolutiontotheproblemofriskthatisembeddedinthepriceunpredictabilityoftheunderlyingasset.InIndia,theemergenceandgrowthofderivativesmarketisrelativelyarecentphenomenon.SinceitsinceptioninJune2000,derivativesmarkethasexhibitedexponentialgrowthbothintermsofvolumeandnumberoftradedcontracts.ThemarketturnoverhasgrownfromRs.2365crorein2000-2001toRs.11010482.20crorein20082009.Withinashortspanofeightyears,derivativestradinginIndiahassurpassedcashsegmentin\ul0\nosupersub\cf13\f14\fs28termsofturnoverandnumberoftradedcontracts.Thepresentstudyencompassesinitsscopeananalysisofhistoricalrootsofde

rivative\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28trading,typesofderivativeproducts,regulationandpolicydevelopments,trendandgrowth,futureprospectsandchallengesofderivativemarketinIndia.Somespaceisdevotedalsotoabriefdiscussionofthestatusofglobalderivativesmarketsvis-a-vistheIndianderivativesmarket.\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf16\f17\fs40Chapter:2\par\pard\par\pard\ql\ul0\nosupersub\cf8\f9\fs52Introduction\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf15\f16\fs36Fundamentalandtechnical:\par\pard\par\pard\ql\ul0\nosupersub\cf1\f2\fs31EconomicIndicators:\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Economicindicatorscanhaveahugeimpactonthemarket;therefore,knowinghowtointerpretandanalyzethemisimportantforallinvestors.Inthistutorial,we'llcoversomeofthemostimportanteconomicindicators.You'lllearnwheretofindthem,howtoreadthemandwhattheycan

tellyouabouthehealthoftheeconomy-andyourinvestments.\par\pard\par\pard\qj Economicindicatorsareusedbytradersandinvestorsinanattempttounderstandtheunderlyingfundamentalsofthemarket.Thespecificeconomicindicatorstraderslookatwilloftendependonthemarketinwhichthetradersareoperating.Foroiltraders,themajorfocuswillbeoneconomicindicatorsthatprovideinformationpertainingtothepetroleumindustry.Forthemostpart,theindicatorsusedbyenergytradersdealwithinventoriesandproductionlevelsforcrudeoil.\par\pard\par\pard Oneofthemostpopularindicatorsusedbyoiltradersisthecrudeinventories(stocklevels),whichistheamountofoilcurrentlystoredforfutureuse.Thisnumber,andanychangesitundergoes,givestradersanideaofthetrendsinproductionandconsumptionofoiloveraspecificperiodoftime.ThismeasureincludesalloftheU.S.crudeoilandleasecondensate(mixtureofhea

vyhydrocarbonsandpentanes)currentlyheldatrefineries,withinpipelinesandatpipelineterminals.\par\pard\par\pard\qrOil-specificeconomicmeasuresarenottheonlyareawatchedbyoiltraderstheywillalsofocusongeneraleconomicindicators,suchasgrossdomesticproduct(GDP),togainanideaoftheoveralleconomicpicture.Iftheeconomyis\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28growingquickly,itwilllikelyconsumemoreoilthanitwouldiftheeconomywereinarecession,asenergyisanimportantinputforeconomicgrowth.\par\pard\par\pard\ql\ul0\nosupersub\cf1\f2\fs31CrudeoilasEconomicIndicators\ul0\nosupersub\cf5\f6\fs31:\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Economicindicatorsareu


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sedbytradersandinvestorsinanattempttounderstandtheunderlyingfundamentalsofthemarket.Thespecificeconomicindicatorstraderslookatwilloftendependonthemarketinwhichthetradersareoperating.Foroiltraders,themajorfocuswillbeoneconomicindicatorsthatprovideinformationpertainingtothepetroleumindustry.Forthemostpart,theindicatorsusedbyenergytradersdealwithinventoriesandproductionlevelsforcrudeoil.\par\pard\par\pard Oneofthemostpopularindicatorsusedbyoiltradersisthecrudeinventories(stocklevels),whichistheamountofoilcurrentlystoredforfutureuse.Thisnumber,andanychangesitundergoes,givestradersanideaofthetrendsinproductionandconsumptionofoiloveraspecificperiodoftime.ThismeasureincludesalloftheU.S.crudeoilandleasecondensate(mixtureofheavyhydrocarbonsandpentanes)currentlyheldatrefineries,withinpipelinesandatpipelineterminals.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28GDPasEconomicIndicators\ul0\nosupersub\cf14\f15\fs28:\par\pard\par\pard\qj Thegrossdomesticproduct(GDP)isthegodfatheroftheindicatorworld.Asanaggregatemeasureoftotaleconomicproductionforacountry,GDPrepresentsthemarketvalueofallgoodsandservicesproducedbytheeconomyduringtheperiodmeasured,includingpersonalconsumption,governmentpurchases,privateinventories,paid-inconstructioncostsandtheforeigntradebalance(exportsareadded,importsaresubtracted).\par\pard\par\pard\ql\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28RealGDPistheoneindicatorthatsaysthemostaboutthehealthoftheeconomyandtheadvancereleasewillalmostalwaysmovemarkets.Itisbyfarthemostfollowed,discussedanddigestedindicatoroutthere-usefulforeconomists,anal

ysts,investorsandpolicymakers.Thegeneralconsensusisthat2.5-3.5%peryeargrowthinrealGDPistherangeofbestoverallbenefit;enoughtoprovideforcorporateprofitandjobsgrowthyetmoderateenoughtonotinciteundueinflationaryconcerns.Iftheeconomyisjustcomingoutofrecession,itisOKfortheGDPfiguretojumpintothe6-8%rangebriefly,butinvestorswilllookforthelong-termratetostaynearthe3%level.ThegeneraldefinitionofaneconomicrecessionistwoconsecutivequartersofnegativeGDPgrowth.\par\pard\par\pard\qj WhilethevalueofbothexportsandimportsareincludedintheGDPreport,importsaresubtractedfromtotalGDP,meaningthatallconsumerpurchasesofimporteditemsarenotcountedascontributionstowardGDP.BecausetheU.S.runsacurrentaccountdeficit,importingfarmorethanisexported,reportedGDPfigureshaveaslightdragonthem.Arelatedmeasureprovidedinthereport,grossnationalproduct(GNP),goesonestepfurtherbyonlycount

ingthevalueofgoodsandservicesproducedbylaborandpropertywithintheUnitedStates.(Tolearnmore,read\ul0\nosupersub\cf18\f19\fs28CurrentAccountDeficits\ul0\nosupersub\cf14\f15\fs28.)\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28IndustrialProductasEconomicIndicator\ul0\nosupersub\cf14\f15\fs28:\par\pard\par\pard\qj Industrialproductionfiguresarebasedonthemonthlyrawvolumeofgoodsproducedbyindustrialfirmssuchasfactories,minesandelectricutilitiesintheUnitedStates.Alsoincludedintheindustrialproductionfiguresarethebusinessesofnewspaper,periodicalandbookpublishing,traditionallylabeledasmanufacturing.\par\pard\par\pard\ql\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Capacityutilizationlevels,althoughtechnicallyupperboundby100%,don'tapproachthisvalue.Utilizationlevelsabove82-85%areseenas"tight"andforecastpriceincreasesorsupplyshortagesinthenearfuture.Levelsbelow80%meanthereissomes

lackintheeconomy,whichcouldleadtorecessionworriesandemploymentlosses.(Forrelatedreading,see\ul0\nosupersub\cf18\f19\fs28Recession:WhatDoesItMeanToInvestors?\ul0\nosupersub\cf14\f15\fs28)\par\pard\par\pard\ql\ul0\nosupersub\cf19\f20\fs43ConceptofDerivatives\ul0\nosupersub\cf20\f21\fs51:\par\pard\par\pard\ql\ul0\nosupersub\cf13\f14\fs28Theterm\u8222?derivatives,referstoabroadclassoffinancialinstruments\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28whichmainlyincludeoptionsandfutures.Theseinstrumentsderivetheirvaluefromthepriceandotherrelatedvariablesoftheunderlyingasset.\ul0\nosupersub\cf13\f14\fs28Theydonothaveworthoftheirownandderivetheirvaluefromthe\ul0\nosupersub\cf14\f15\fs28claimtheygi


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vetotheirownerstoownsomeotherfinancialassetsorsecurity.Asimpleexampleofderivativeisbutter,whichisderivativeof\ul0\nosupersub\cf12\f13\fs28milk.Thepriceofbutterdependsuponpriceofmilk,whichinturn\ul0\nosupersub\cf14\f15\fs28dependsuponthedemandandsupplyofmilk.Thegeneraldefinitionofderivativesmeanstoderivesomethingfromsomethingelse.Someothermeaningsofwordderivativesare:\par\pard\par\pard\qra)\ul0\nosupersub\cf2\f3\fs28Derivedfunction\ul0\nosupersub\cf14\f15\fs28:theresultofmathematicaldifferentiation;theinstantaneouschangeofonequantityrelativetoanother;df(x)/dx,b)\ul0\nosupersub\cf2\f3\fs28Derivativeinstrument\ul0\nosupersub\cf14\f15\fs28:afinancialinstrumentwhosevalueisbasedonanothersecurity,(linguistics)awordthatisderivedfromanotherword;"`electricity'isaderivativeof\u8222?electric\u8223?.\par\pard\par\pard\qj Theassetunderlyingaderivativemaybecommodityorafinancialasset.Derivativesarethosefinancialinstrumentsthatderivetheirvaluefromtheotherassets.Forexample,thepriceofgoldtobedeliveredaftertwomonthswilldepend,amongsomanythings,onthepresentandexpectedpriceofthiscommodity.\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf21\f22\fs31DefinitionofFinancialDerivatives\ul0\nosupersub\cf22\f23\fs27:\par\pard\par\pard \ul0\nosupersub\cf14\f15\fs28Section2(ac)ofSecuritiesContractRegulationAct(SCRA)1956definesDerivativeas:a)\u8220?asecurityderivedfromadebtinstrument,share,loanwhethersecuredorunsecured,riskinstrumentorcontractfordifferencesoranyotherformofsecurity;b)\u8220?acontractwhichderivesitsvaluefromtheprices,orindexofprices,ofunderlyingsecurities\u8221?.\par\pard\par\pard\qrRiskmaybede

finedindifferentways.Incommonparleys,itistakentorefertoonlythepossibilitiesofincurringlossesorsomeunfavourable\ul0\nosupersub\cf12\f13\fs28outcome.However,ineconomicsoffinanceitdenotestherangeof\ul0\nosupersub\cf14\f15\fs28variabilityofexpectedreturns,thusincludingpossibilitiesofbothlossandprofit.Varioustypesofrisksincludefinancialrisk,interestraterisk,exchangerisk,businessriskandmarketrisketc.\par\pard\par\pard\ql\ul0\nosupersub\cf21\f22\fs31UnderlyingAssetinaDerivativesContract:\par\pard\par\pard\ql \ul0\nosupersub\cf14\f15\fs28Asdefinedabove,thevalueofaderivativeinstrumentdependsupontheunderlyingasset.Theunderlyingassetmayassumemanyforms:\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28i.}\cell{\ul0\nosupersub\cf14\f15\fs28Commoditiesincludinggrain,coffeebeans,orangejuice;}\cell

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\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28ii.}\cell{\ul0\nosupersub\cf14\f15\fs28Preciousmetalslikegoldandsilver;}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28iii.}\cell{\ul0\nosupersub

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\trowd\trautofit1\intbl{}\cell{\ul0\nosupersub\cf14\f15\fs28debtsecuritiesissuedbygovernments,companies,etc.}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28v.}\cell{\ul0\nosupersub\cf14\f15\fs28Sharesandsharewarrantsofcompaniestradedonrecognizedstock}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28exchangesandStockIndex.}\cell\cell


\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28vi.}\cell{\ul0\nosupersub\cf14\f15\fs28ShorttermsecuritiessuchasT-bills;and}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28vii.}\cell{\ul0\nosupersub

\cf14\f15\fs28Over-theCounter(OTC)moneymarketproductssuchasloansordeposits.}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf21\f22\fs31ParticipantsinDerivativesMarket\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs281.\ul0\nosupersub\cf2\f3\fs28Hedgers:\ul0\nosupersub\cf14\f15\fs28Theyusederivativesmarketstoreduceoreliminatetherisk\ul0\nosupersub\cf13\f14\fs28associatedwithpriceofanasset.Majorityoftheparticipantsin\ul0\nosupersub\cf14\f15\fs28derivativesmarketbelongstothisc

ategory.\par\pard\par\pard\qj 2.\ul0\nosupersub\cf2\f3\fs28Speculators\ul0\nosupersub\cf14\f15\fs28:Theytransactfuturesandoptionscontractstogetextraleverageinbettingonfuturemovementsinthepriceofanasset.Theycanincreaseboththepotentialgainsandpotentiallossesbyusageofderivativesinaspeculativeventure.\par\pard\par\pard\ql3.\ul0\nosupersub\cf2\f3\fs28Arbitrageurs:\ul0\nosupersub\cf14\f15\fs28Theirbehaviourisguidedbythedesiretotake\ul0\nosupersub\cf13\f14\fs28advantageofadiscrepancybetweenpricesofmoreorlessthesame\par\pard\par\pard\ul0\nosupersub\cf14\f15\fs28assetsorcompetingassetsindifferentmarkets.If,forexample,theyseethefuturesp


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riceofanassetgettingoutoflinewiththecashprice,theywilltakeoffsettingpositionsinthetwomarketstolockinaprofit.\par \ul0\nosupersub\cf2\f3\fs28Financialriskmanagement\ul0\nosupersub\cf14\f15\fs28isthepracticeofcreatingeconomicvaluein\par\pard usingfinancialinstrumentstoparticularlycreditriskandmarketrisk.manageexposuretorisk,OthertypesincludeForeign\par\pard\par\pard\qlexchange,Shape,Volatility,Sector,Liquidity,Inflationrisks,etc.Similar\par\pard\par\pard\ql\ul0\nosupersub\cf13\f14\fs28togeneralriskmanagement,financialriskmanagementrequires\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28identifyingitssources,measuringit,andplanstoaddressthem.\par\pard\par\pard\ql\ul0\nosupersub\cf13\f14\fs28Financialriskmanagementcanbequalitativeandquantitative.Asa\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28specializationofriskmanagement,financialriskmanagementfocusesonwhenandhowtohedgeusingfinancialinstrumentstomanagecostlyexposurestorisk.\par\pard\par\pard\ql\ul0\nosupersub\cf25\f26\fs35EQUITY\par\pard\par\pard\ql\ul0\nosupersub\cf13\f14\fs28Anequityshareisaunitofownershipinacompany.Everycompany\ul0\nosupersub\cf14\f15\fs28issues\par\pard\par\pard\ql\par\pard\par\pard\ul0\nosupersub\cf14\f15\fs28acertainnumberofsharestoitspromoters,i.e.,thosewhoparticipateinitsformation.Thecompanyissuesadditionalsharestothe\ul0\nosupersub\cf13\f14\fs28public,whenitraisesmoneybywayofanInitialPublicOffer(IPO).\ul0\nosupersub\cf14\f15\fs28Hence,inadditiontothepromoters,thepublictoobecomeshareholders\ul0\nosupersub\cf12\f13\fs28ofthecompany.So,ifyouhold100sharesofacompanywhichhas\ul0\nosupersub\cf14

\f15\fs28issued10,000shares,youown1percentofthecompany.\par\pard\par\pard\ql\ul0\nosupersub\cf21\f22\fs31Benefitstoashareholder\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Whyshouldyoupurchasesharesofacompany?Whatarebenefitsthataccruetoyouasashareholder?Apartfromtherighttovoteanddecidethefuturecourseofactionthatacompanytakes,therealbenefitthatyou,\ul0\nosupersub\cf13\f14\fs28asashareholderhas,isinformofparticipationthatyougetinprofit\ul0\nosupersub\cf14\f15\fs28madebythecompany.Atthesametime,yourliabilityislimitedonlytothefacevalueofthesharesheldbyyou.Thebenefitsdistributedbythecompanytoitsshareholderscanbe:1)MonetaryBenefitsand2)NonMonetaryBenefits.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs281.MonetaryBenefits:\par\pard\par\pard \ul0\nosupersub\cf14\f15\fs28A.\ul0\nosupersub\cf23\f24\fs28\ul0\nosupersub\cf2\f3\fs28Dividend:\ul0\nosupersub\cf14\f15\fs28Anequityshareholderhasarighton

theprofitsgeneratedbythecompany.Profitsaredistributedinpartorinfullintheformofdividends.Dividendisanearningon\ul0\nosupersub\cf13\f14\fs28theinvestmentmadeinshares,justlikeinterestincaseof\ul0\nosupersub\cf14\f15\fs28bondsordebentures.Acompanycanissuedividendintwo\ul0\nosupersub\cf13\f14\fs28forms:a)InterimDividendandb)FinalDividend.Whilefinaldividendisdistributedonlyafterclosingoffinancial\ul0\nosupersub\cf14\f15\fs28year;companiesattimesdeclareaninterimdividendduringafinancialyear.HenceifXLtd.earnsaprofitofRs40croreanddecidestodistributeRs2toeachshareholder,aholding\ul0\nosupersub\cf27\f28\fs28of200sharesofXLtd.wouldentitleyoutoRs400as\ul0\nosupersub\cf14\f15\fs28dividend.ThisisareturnthatyoushallearnasaresultoftheinvestmentmadebyyoubysubscribingtothesharesofXLtd.\par\pard\par\pard\ql\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28B.\ul0\nosupersub\cf23\f24\fs28\

ul0\nosupersub\cf2\f3\fs28CapitalAppreciation:\ul0\nosupersub\cf14\f15\fs28Ashareholderalsobenefitsfromcapitalappreciation.Simplyput,thismeansanincreaseinthevalueofthecompanyusuallyreflectedinitsshareprice.\ul0\nosupersub\cf12\f13\fs28Companiesgenerallydonotdistributealltheirprofitsas\ul0\nosupersub\cf14\f15\fs28dividend.Asthecompaniesgrow,profitsarere-investedin\ul0\nosupersub\cf12\f13\fs28thebusiness.Thismeansanincreaseinnetworth,which\ul0\nosupersub\cf14\f15\fs28resultsinappreciationinthevalueofshares.Hence,ifyoupurchase200sharesofXLtdatRs20pershareandholdthesamefortwoyears,afterwhichthevalueofeachshareisRs35.ThismeansthatyourcapitalhasappreciatedbyRs3000.\par\pard\p


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ar\pard2.\ul0\nosupersub\cf28\f29\fs28Non-MonetaryBenefits:\ul0\nosupersub\cf13\f14\fs28Apartfromdividendsandcapitalappreciation,investmentsinsharesalsofetchsometypeofnon-\ul0\nosupersub\cf14\f15\fs28monetarybenefitstoashareholder.Bonusesandrightsissuesaretwosuchnoticeablebenefits.\par A.\ul0\nosupersub\cf23\f24\fs28\ul0\nosupersub\cf2\f3\fs28Bonus:\ul0\nosupersub\cf14\f15\fs28Anissueofbonussharesisthedistributionfreeofcosttotheshareholdersusuallymadewhenacompanycapitalizeson\par\pardprofitsmadeover aperiodoftime.Ratherthan\par\pard\par\pard\qlpayingdividends,companiesgiveadditionalsharesinapre\par\pard\par\pard\ul0\nosupersub\cf13\f14\fs28definedratio.Primafacie,itdoesnotaffectthewealthofshareholders.However,inpractice,bonusescarrycertain\par\pard\par\pard\qj\ul0\nosupersub\cf14\f15\fs28latentadvantagessuchastaxbenefits,betterfuturegrowthpotential,anincreaseinthefloatingstockofthecompany,etc.HenceifXLtddecidestoissuebonussharesinaration\par\pard\par\pard\ql\ul0\nosupersub\cf13\f14\fs28of1:1,everyexistingshareholderofXLtdwouldreceive\par\pard\par\pard\ql\ul0\nosupersub\cf27\f28\fs28oneadditionalsharefreeforeachshareheldbyhim.Of\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28course,takingthebonusintoaccount,thesharepricewouldalsoideallyfallby50percentpostbonus.However,\ul0\nosupersub\cf13\f14\fs28dependinguponmarketexpectations,thesharepricemay\ul0\nosupersub\cf14\f15\fs28riseorfallonthebonusannouncement.\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersu

b\cf12\f13\fs28B.\ul0\nosupersub\cf29\f30\fs28\ul0\nosupersub\cf28\f29\fs28RightsIssue:\ul0\nosupersub\cf12\f13\fs28Arightsissueinvolvessellingofordinary\ul0\nosupersub\cf14\f15\fs28sharestotheexistingshareholdersofthecompany.Acompanywishingtoincreaseitssubscribedcapitalby\ul0\nosupersub\cf27\f28\fs28allotmentoffurthersharesshouldfirstofferthemtoits\ul0\nosupersub\cf13\f14\fs28existingshareholders.Thebenefitofarightsissueisthat\ul0\nosupersub\cf14\f15\fs28existingshareholdersmaintaincontrolofthecompany.Also,\ul0\nosupersub\cf27\f28\fs28thisresultsinanexpandedcapitalbase,afterwhichthe\ul0\nosupersub\cf14\f15\fs28companyisabletoperformbetter.Thisgetsreflectedintheappreciationofsharevalue.\par\pard\par\pard\ql\ul0\nosupersub\cf24\f25\fs31RisksInequityinvestment\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Althoughanequityinvestmentisthemostrewardingintermsofreturnsgenerated,certainrisksa

reessentialtounderstandbeforeventuringintotheworldofequity.Thesecanbedescribedasfollows:\par\pard\par\pard\qla.\ul0\nosupersub\cf23\f24\fs28\ul0\nosupersub\cf2\f3\fs28Market/EconomyRisk:\ul0\nosupersub\cf14\f15\fs28Theperformanceofanycompanydependsonthegrowthofaneconomy.Aneconomy,whichcontinuestoprosper,ensuresthatcompaniesoperatinginitbenefitfromitsgrowth.However,anequityshareholderalsorunstheriskofanydownturnintheeconomyaffectingtheperformanceofhiscompany.EconomyrelatedrisksareusuallyreflectedinthefactorssuchasGDPgrowth,inflation,balanceofpaymentpositions,interestrates,creditgrowthetc.Aslowdownintheeconomypinchesalmostallsectors,especiallyinfrastructure,servicesandmanufacturingcompanies.\par\pard\par\pard\qjb.\ul0\nosupersub\cf2\f3\fs28IndustryRisk:\ul0\nosupersub\cf14\f15\fs28Allindustriesundergosomekindofc

yclicalgrowth.Shareholdersgetrewardedmostduringtheexpansionstage.Forinstance,thelastfewyearshavebeenveryrewardingforinvestorsinrealestate.However,oncetheindustryreachesamaturitystage,therewardsfrominvestmentarelimited.Further,companiesbelongingtoindustrieswhere\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28growthhasretardedincurlossesordeclininggains.Industryspecificgovernmentregulationstooimpactreturnsfrominvestmentsmadetherein.\par\pard\par\pard\qlc.\ul0\nosupersub\cf2\f3\fs28ManagementRisk:\ul0\nosupersub\cf14\f15\fs28Themanagementisthefaceofanenterprise.Itistheteamwhichgivesdirectiontothefuturecourseofactionthatacompanywilltak


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e.Qualityofmanagementishenceparamount.Managementchangesoftenhaveaseriousimpactonpolicymattersofcompanies,therebyimpactingtheshareprice.A\ul0\nosupersub\cf13\f14\fs28managementwhichisunabletomeetthechallengesposedby\ul0\nosupersub\cf14\f15\fs28competitionislikelytosufferinperformance.\par\pard\par\pard\qld.\ul0\nosupersub\cf2\f3\fs28BusinessRisk:\ul0\nosupersub\cf14\f15\fs28Businessriskisafunctionoftheoperatingconditionsfacedbyacompanyandthevariabilitythattheseconditionsinjectintooperatingincomeandhenceexpecteddividends.Businessriskcanbeclassifiedintotwobroadcategories:externalandinternal.Internalbusinessriskislargelyassociatedwiththeefficiencywithwhichacompanyconductsitsoperationswithinthebroaderenvironmentimposeduponit.Externalriskistheresultofoperatingconditionsimposeduponthecompanybycircumstancesbeyonditscontrol.e.\ul0\nosupersub\cf2\f3\fs28FinancialRisk:\ul0\nosupersub\cf14\f15\fs28Financialriskisassociatedwiththewayinwhichacompanyfinancesitsactivities.Acompany,borrowingmoneyforbusiness,createsfixedpaymentobligationsinformofinterestthatmustbesustained.Beyondaspecifiedlimit,theresidual\ul0\nosupersub\cf13\f14\fs28incomeleftforshareholdersgetsreduced,therebyaffectingthe\ul0\nosupersub\cf14\f15\fs28returnsonshares.Moreimportantly,itincreasesdefaultrisk,i.e,aheavilyleveragedcompany,isatagreaterriskofnotbeingabletomeetitsliabilitiesandhencegoingbankrupt.f.\ul0\nosupersub\cf2\f3\fs28ExchangeRateRisk:\ul0\nosupersub\cf14\f15\fs28Companiestodayearnsizeablerevenuesfromoutsidetheirparentcountry.Hence,anyappreci

ationinthecurrency,aswas\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28recentlywitnessedwithtechnologycompanies,adverselyaffectsearnings,whichresultsinfallingorstagnantshareprices.\par\pard\par\pard\qlg.\ul0\nosupersub\cf2\f3\fs28InflationRisk:\ul0\nosupersub\cf14\f15\fs28Risingpricesorinflationreducespurchasingpowerforthecommonmanresultinginaslowdowninthedemand\ul0\nosupersub\cf13\f14\fs28intheeconomy.Thishasimplicationsforallthesectorsinthe\ul0\nosupersub\cf14\f15\fs28economy.Hence,inaninflationaryenvironment,sharepricesofmostcompaniesfaceadownturnastheexpectedfallindemandreducestheirfutureexpectedincome.\par\pard\par\pard\qlh.\ul0\nosupersub\cf2\f3\fs28InterestRateRisk:\ul0\nosupersub\cf14\f15\fs28Interestrateriskreferstotheuncertaintyoffuturemarketvaluesandsizeoffutureincome,causedbyfluctuationsinthegenerallevelofinterest

rates.Risinginterestratesincreasecostofborrowing,whichresultsinanincreaseinthepricesofproductsandacorrespondingslowdownindemand.\ul0\nosupersub\cf12\f13\fs28Hence,aninterestratehikeaffectssharepricesofcompanies\ul0\nosupersub\cf14\f15\fs28cuttingacrosstheboard.\par\pard\par\pard\qj \ul0\nosupersub\cf30\f31\fs28Howtoovercomerisks:\ul0\nosupersub\cf13\f14\fs28Mostrisksassociatedwithinvestmentsinsharescanbereducedbyusingthetoolofdiversification.Purchasingsharesofdifferentcompaniesandcreatingadiversifiedportfoliohas\ul0\nosupersub\cf14\f15\fs28proventobeoneofthemostreliabletoolsofriskreduction.\par\pard\par\pard\ql\ul0\nosupersub\cf24\f25\fs31CategoriesofStocks\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28Stockscanalsobeclassifiedaccordingtoanumberofothercriteria,includingcompanysizeandcompanysector.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28LargeCap,MidCapandSmallCap\par\pard\pa

r\pard\qj\ul0\nosupersub\cf14\f15\fs28Stockscanbeclassifiedaccordingtothemarketcapitalizationofthecompany.Themarketcapitalizationofacompanyrepresentsthetotaldollarvalueofthecompany'soutstandingshares.Thisisequaltothecurrentmarketpriceofitsstockmultipliedbythenumberofsharesofstockthatithasoutstanding.That\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28numbergivesyouthemarketvalueofthecompany,whichisonemeasureofthecompany'ssize.Roughlyspeaking,therearethreebasiccategoriesofmarketcapitalization:largecap,midcap,andsmallcap(althoughsomeanalystsincludeotherssuchasmegacapatthelargeendandmicrocapatthesmallend).Thedefinitionsforeachofthesemightvarysome


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whatdependingonwhomyou'retalkingto,butusuallytheyareasfollows:\par\pard\par\pard\qlLargecap:marketcapvaluedatmorethan$10billionMidcap:marketcapvaluedbetween$1billionand$10billionSmallcap:marketcapvaluedatlessthan$1billion\par\pard\par\pard\qlIngeneral,thelargerthecapsize,themoreestablishedthecompany,andthemorestablethepriceofitsstock.Smallcapandmidcapcompaniesusuallyhaveahigherpotentialforfuturegrowththanlargecapcompanies,buttheirstocktendstofluctuatemoreinprice.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28PennyStocks\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Apennystockisastockpricedunderonedollarpershare(orinsomecases,underfivedollarspershare).Mostpennystockshaveonlyafewmilliondollarsinnettangibleassetsandhaveashortoperatinghistory.Pennystocksarealmostalwayssmallcapstocks,butthereverseisn'tnecessarilytrue.Theterm"pennystock"issometimesusedinaderogatoryfashion,sincemanypennystocksarevirtuallyworthlessandshouldbeconsideredextremelyhigh-riskinvestments.Therearealsomanycasesoffraudinvolvingpennystockseachyear.Werecommendthatbeginnerssteerclearofpennystocks.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28SectorStocks\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28Stocksareoftengroupedintodifferentsectorsdependinguponthecompany's\par\pard\par\pard\ql\par\pard\par\pard\ul0\nosupersub\cf14\f15\fs28business.Standard&Poor'sbreaksthemarketinto11differentsectors.Twoofthesesectors,utilitiesandconsumerstaples,aresaidtobedefensivesectors,whiletheresttendtobemorecyclicalinnature.Theotherninesectorsare:transportation,technology,healthcare,financial,energy,consumercyclicals,basicmaterials,capitalgood

s,andcommunicationsservices.Ofcourse,othergroupsbreakupthemarketintodifferentsectorcategorizations,andsometimesbreakthemdownfurtherintosubsectors.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28CyclicalStocks\par\pard\par\pard\qr\ul0\nosupersub\cf14\f15\fs28Stockscanbeclassifiedaccordingtohowtheyreacttobusinesscycles.Cyclicalstocksarestocksofcompanieswhoseprofitsmoveupanddownaccordingtothebusinesscycle.Cyclicalcompaniestendtomakeproductsorprovideservicesthatareinlowerdemandduringdownturnsintheeconomyandhigherdemandduringupswings.Theautomobile,steel,andhousingindustriesareallexamplesofcyclicalbusinesses.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28DefensiveStocks\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Defensivestocksaretheoppositeofcyclicalstocks:theytendtodowellduringpooreconomicconditions.Theyareissuedbycompanieswhoseproductsandservicesenjoyasteadydemand.Foodandutili

tiesstocksaredefensivestockssincepeopletypicallydonotcutbackontheirfoodorelectricityconsumptionduringadownturnintheeconomy.Butalthoughdefensivestockstendtoholdupwellduringeconomicdownturns,theirperformanceduringupswingsintheeconomytendstobelacklustercomparedtothatofcyclicalstocks.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28TrackingStock\par\pard\par\pard\qr\ul0\nosupersub\cf14\f15\fs28Atrackingstockisatypeofcommonstockthatistiedtotheperformanceofaspecificsubsidiaryofthecompany.Thismeansthatthedividendsandthecapitalgainsforthestockdependuponthesubsidiaryratherthanthecompanyasawhole.Owningatrackingstockdoesnotgivetheownervoting\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28rightsinthecorporation,nordoownersoftrackingstockshavealegalclaimuponthegeneralassetsofthecorporation.Acompany\ul0\nosupersub\cf27\f28\fs28willsometimesissueatracki

ngstockwhenithasaverysuccessful\ul0\nosupersub\cf12\f13\fs28divisionthatitfeelsisunderappreciatedbythemarketandnotfully\ul0\nosupersub\cf14\f15\fs28reflectedinthecompany'sstockprice.\par\pard\par\pard\ql\ul0\nosupersub\cf32\f33\fs39COMMODITY\par\pard\par\pard\ql\ul0\nosupersub\cf24\f25\fs31WHYFUTURESTRADING?\par\pard\par\pard\ql \ul0\nosupersub\cf14\f15\fs28Overthepasttwodecades,foodpriceshavebeenmorevolatilethanthepricesofmanufacturedgoods.Theuncertaintyofcommodityprices\par\pard\par\pard\ql\ul0\nosupersub\cf27\f28\fs28leavesafarmeropentotheriskofreceivingapricelowerthanthe\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28expectedpriceforhisyield.Attimes,


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thecroppricesfallsolowthatthefarmerisunabletorepaytheloan.Inadequatepriceriskmanagementisoneofthemostimportantreasonsforpoorfarmersremainingpoor.\par\pard\par\pard \ul0\nosupersub\cf13\f14\fs28Priceriskmanagementreferstominimisingtheriskinvolvedin\ul0\nosupersub\cf14\f15\fs28commoditiestrading.Throughfuturescontracts,theriskmaybeshifted\ul0\nosupersub\cf13\f14\fs28tospeculatorsortraderswhoarewillingtoassumetherisk.Ahedger\ul0\nosupersub\cf14\f15\fs28wouldtrytominimiseriskbytakingoppositepositionsinthefuturesandcashmarkets.Sincethetwomarketsusuallymoveinthesamedirection,theprofitsofonemarketwillcoverthelossesintheother.Inthecaseofa\ul0\nosupersub\cf13\f14\fs28commodityseller,likeafarmeroramerchant,futurescontractsoffer\ul0\nosupersub\cf14\f15\fs28protectionfromdecliningprices.\par Pricediscoveryreferstotheprocessofdeterminingthepricelevelofa\ul0\nosupersub\cf12\f13\fs28commoditybasedondemandandsupplyfactors.Everytraderinthe\ul0\nosupersub\cf14\f15\fs28tradingpitofacommoditiesexchangehasspecificmarketinformationlikedemand,supplyandinflationrates.Whentradesbetweenbuyersandsellersareexecuted,themarketpriceofacommodityisdiscovered.AccordingtoV.Shunmugam,ChiefEconomistattheMultiCommodityExchangeofIndiaLtd.,commodityfutureshelppolicymakers\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28takebetterpreventivemeasuresbyindicatingpricerisesbeforehand.\par\pard\par\pard\ql\ul0\nosupersub\cf13\f14\fs28Apartfromthebasicfunctionsofpricediscoveryandpricerisk\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28management,futurescontractshaveanum

berofotherbenefitslike\par\pard\par\pard\ql\ul0\nosupersub\cf12\f13\fs28providingliquidity,bringingtransparencyandcontrollingblack\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28marketing.\par\pard\par\pard Futurescontractscaneasilybeconvertedintocash,i.e.theyareliquid.\ul0\nosupersub\cf13\f14\fs28Bybuyingorsellingthecontractinordertomakeprofits,speculatorsprovidethecapitalrequiredforensuringliquidityinthemarket.Theyprovidecertaintyoffuturerevenuesorexpenditures,henceensuring\ul0\nosupersub\cf14\f15\fs28concretecashflowsfortheuser.\par Futuresmarketsallowspeculativetradeinamorecontrolledenvironmentwheremonitoringandsurveillanceoftheparticipantsispossible.Hence,\ul0\nosupersub\cf13\f14\fs28futuresensuretransparency.Thetransparencybenefitsthefarmersas\ul0\nosupersub\cf14\f15\fs28wellbyspreadingawarenessaboutpricesintheopenmarket.\ul0\nosupersub\cf12\f13\fs28Futuresalsohelpinsta

ndardisationofquality,quantityandtimeof\ul0\nosupersub\cf13\f14\fs28delivery,sincethesevariablesareagreeduponbytheparticipantsand\ul0\nosupersub\cf14\f15\fs28specifiedinthefuturescontract.\par\pard\par\pard\ql\ul0\nosupersub\cf25\f26\fs35CURRENCY/FOREIGNEXCHANGE\par\pard\par\pard\ql\ul0\nosupersub\cf21\f22\fs31WHATISFOREXTRADING?\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28ForeignExchange/CurrencyTradingistradingincurrenciesofvariouscountriesinordertomakeprofits.Currenciesarealwaystradedinpairsmeaningyoucantradeintwocurrenciesatatime.Youbuyonecurrencyandsellanothercurrency.ThemosttradedcurrencypairsareUSD/JPY,GBP/USDANDEURO/USD.Thefirstcurrencyofthepairiscalledas\ul0\nosupersub\cf13\f14\fs28thebasecurrency.BuyingGBP/USDmeansyouarebuyingGBPand\ul0\nosupersub\cf14\f15\fs28sellingUSD.SimilarlysellingEURO/USDmeansyouaresellingEUROandbuyingUSD.\par\pa

rd\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf21\f22\fs31HOWTOTRADEINCURRENCY\ul0\nosupersub\cf24\f25\fs31?\par\pard\par\pard \ul0\nosupersub\cf14\f15\fs28Bigmoneycanbemadethroughtradinginforex.Thereasonbeingthemarginmoneyrequirement(minimumdeposit)isonly5%ofthetotaltrade.ForexampleIfyouhaveRs1000inyouraccount,youcantakepositionsonRs20,000(1000*100/5).Thismeansapersoncantakeaverylargepositioninthemarketwithasmallamount.Let\u8223?sunderstandthisconceptbyanexample-IfonewantstotradeinpoundandhaveacapitalofRs75000.\par\pard\par\pard\qlIf1pound=Rs75\par\pard\par\pard\qlLotsizeis1000\par\pard\par\pard\qlTotalexposure=75000*100/5=Rs14,80,000\ul0\nosupersub\cf2\f3\f


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s28Case1-\ul0\nosupersub\cf14\f15\fs28IftherupeedepreciatesbyRs1,1Pound=Rs76TraderincuralossofRs1000*10=Rs10,000\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28Case1-\ul0\nosupersub\cf14\f15\fs28IftherupeeappreciatesbyRs1,1Pound=Rs74TraderincuraprofitofRs1000*10=Rs10,000\par\pard\par\pard\qj Withriseorfallincurrencyonecaneithermakemoneyorlosemoney.Tradersshouldalwaysnotethereishugepotentialofmoneytobemadeandtheriskisquitehighaswell.Investmentincurrencyfuturesisbasedontheriskappetite.Ideallyasmallinvestorshouldnothaveexposuretothisformofinstruments\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf16\f17\fs40Chapter:3\par\pard\par\pard\ql\ul0\nosupersub\cf33\f34\fs48ResearchObjectives&Methodology\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf15\f16\fs36NeedforstudyforinvestinginStockmarket:\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Withtheevolutionofinterneteverybodycanbe\ul0\nosupersub\cf2\f3\fs28investinginthestockmarket\ul0\nosupersub\cf14\f15\fs28andevenmore,everybodycanmakeaqualitystockmarketresearch,learndifferentresearchmethodsandusealltheknowledgeandresourcesavailableonthewebtodaytolearnbasicsofstockmarket.Letmegetonethingclear-thereisadifferencebetweenthepossibilitytomakeafreestockmarketresearch(freeandenoughdataavailable),beingabletomakeagoodstockresearchandanalysis(havetheknowledgeandtimetodoitright)andviabilityofdoingit(doyouthinkyouwillbeabletocompeteinresearchandanalysisareawithprofessionals,doyoureallyhavealltheinformationandatthesametimelikepros?).\par\pard\par\pard\qrDerivativesmaybetradedforavarietyofreasons.Aderivativeenablesatradertohedgesomepr

eexistingriskbytakingpositionsinderivativesmarketsthatoffsetpotentiallossesintheunderlyingorspotmarket.InIndia,mostderivativesusersdescribethemselvesashedgers(FitchRatings,2004)andIndianlawsgenerallyrequirethatderivativesbeused\ul0\nosupersub\cf12\f13\fs28forhedgingpurposesonly.Anothermotiveforderivativestradingis\ul0\nosupersub\cf14\f15\fs28speculation\ul0\nosupersub\cf12\f13\fs28(i.e.takingpositionstoprofitfromanticipatedpricemovements).Inpractice,itmaybe\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf12\f13\fs28difficulttodistinguishwhether}\cell{\ul0\nosupersub\cf12\f13\fs28aparticulartrade}\cell{\ul0\nosupersub\cf12\f13\fs28wasforhedgingor}\cell{\trowd\trautofit1\intbl

\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\qlspeculation,andactivemarkets\ul0\nosupersub\cf14\f15\fs28requiretheparticipationofbothhedgersandspeculators.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28ResearchMethodology\par\pard\par\pard\qr\ul0\nosupersub\cf14\f15\fs28Researchisthesystemizedeffortstogainnewknowledge.AResearchMethodologydefinesthepurposeoftheresearch,howitproceeds,howtomeasureprogressandwhatconstitutesuccesswithrespecttothe\ul0\nosupersub\cf27\f28\fs28objectivesdeterminedforcarryingouttheresearchstudy.The\ul0\nosup

ersub\cf14\f15\fs28appropriateresearch\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28designformulatedisdetailedbelow.Ascientificallycarriedoutresearchprojecthasadefiniteframeworkfordatacollection.\ul0\nosupersub\cf13\f14\fs28Thisframeworkconstitutestheresearchdesign..Itdeterminesthedata\ul0\nosupersub\cf14\f15\fs28collectionmethod,samplingmethod,thefieldworkandsoon.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28ResearchDesign:\par\pard\par\pard\ql \ul0\nosupersub\cf14\f15\fs28Theresearchdesignforthepresentstudyisdescriptiveasitmatcheswellwiththeobjectivesofthestudy.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28DataCollection:\par\pard\par\pard\ql \ul0\nosupersub\cf14\f15\fs28Thereare


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twosourcesfromwhichdatacanbecollected.Forthepurposeofstudy,bothprimaryandsecondarydatawererequired.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28PrimaryData:\par\pard\par\pard\qj \ul0\nosupersub\cf13\f14\fs28Primarydataisthattypeofdata,whichiscollectedfirsttimeforsome\ul0\nosupersub\cf14\f15\fs28specificpurpose.Therearevariousmeansoftheprimarydatacollection.\ul0\nosupersub\cf13\f14\fs28Here,themeansofcollectionoftheprimarydatawastheobservation\ul0\nosupersub\cf14\f15\fs28method,whichwasbestandsuitableforourrequirements.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28SecondaryData:\par\pard\par\pard\ql\ul0\nosupersub\cf12\f13\fs28Secondarydataisthedata,whichisalreadycollectedforsomeother\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28purpose.SecondarydataiscollectedfromtheInternet,publications,researchpapers&journals.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28SampleSize:\par\pard\par\pard\ql \ul0\nosupersub\cf14\f15\fs28Itisthenumberofrespondentstakenintoconsiderationforconductingthestudy.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28SamplingTechnique:\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Initiallyaroughdraftwaspreparedkeepinginmindtheobjectiveoftheresearch.Apilotstudywasdoneinordertoknowtheaccuracyofthetoolsofresearch.\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28ThemostimportantthingstoconsiderbeforeinvestinginStockmarket:\par\pard\par\pard\ul0\nosupersub\cf5\f6\fs31\u-3913?\ul0\nosupersub\cf2\f3\fs28Regularlyfollowtheoverallglobalstockmarkettrend:\ul0\nosupersub\cf14\f15\fs28andcheckwhatis\par happeningonothermarkets,likebonds,currencies,real-estatesandcommodities-thistypeofanalysisissocalledin

termarketanalysisanditshouldgiveyouananswerifitisagoodtimetobuystocksornot.\par\pard\par\pard\u-3913?\ul0\nosupersub\cf2\f3\fs28Analyzeglobalandregionalmacroeconomicenvironment:\ul0\nosupersub\cf14\f15\fs28andimportant\par datareleases.AmongthemostimportantonesareGDPgrowth,unemployment,industrialproduction,CPI,businessclimate,andsoon.Thepurposeofthisstepistofindtheregionsandcountriesthatarecurrentlyattractiveforinvestinginstockmarket.\par\pard\par\pard\u-3913?\ul0\nosupersub\cf2\f3\fs28Analyzetheindustryandsector:\ul0\nosupersub\cf14\f15\fs28youplantoinvestin.Getfamiliarwith\par typicalbusinesscycleinthatsector-youmustknowatwhichpointyouarecurrentlyandwhereyouareheading.Therearetimes,whenoneindustryisveryattractiveforinvestingwhileanotherisstillinabigdowntrend.Somesectorsareverycyclicalwhileothersareverystable.\par\pard\par\pard\u-3913?Usestockscreenerstohelpyounarrow

downyoustockpicksbymakingsure\par theyfityourpredeterminedcriteria.\ul0\nosupersub\cf2\f3\fs28Analyzethefundamentals\ul0\nosupersub\cf14\f15\fs28ofthe\par companywhichstockyouintendtobuy.Readthelatestnewsaboutthecompanyandgetfamiliarwithcompanycompetitiveadvantagesandweaknesses.Thispartofanalysisincludesresearchingandcomparingthecompanytoitsbiggestcompetitors.Youshouldcoverfinancialinformationasmanagementability-checkwhatinsidersaredoinglatelywithstocks-aretheybuyingorselling?\par\pard\par\pard\ql Asyoucansee,therearemanydifferenttopicstobecoveredbeforeinvestinginstockmarketandthislistisbynomeanscomplete.Wedidn'tmentionthe\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28importanceofchoosingtherightstockbrokerandtestingtradingplatformsforexample.Youshouldexplorerelatedarticlesaboutstockmarketresearchtolearnhowtoinvestandgetyourknowl

edgetoadvancedlevel.Onlythanyouwillbeabletomoreclearlydefinetheresearchandstockmarketanalysisasapartofyourtrading/investingplan.Asyouwillsee,somestockmarketinvestingstrategiesuseseveralresearchmethods,whileotherusesonlyone.Youwillusethoseresearchmethodsthatyoufindvaluableforyourtradingstyle.\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf17\f18\fs43Chapter:4\par\pard\par\pard\ql\ul0\nosupersub\cf8\f9\fs52SectorOverview\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf17\f18\fs43StockExchangeandBrokingsector:\par\pard\par\pard\qj\ul0\nosupersub\cf14\f15\fs28Inactualitythebrokerageindustrycontinuestodeveloprapidly.Manyofthetraditionalrestrictionsagainstbankingactivities


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withinthebrokerageindustryarebeingeliminatedandthebarriersaredisappearing.Duetothis,somecommercialbankshaveassubsidiaries,brokeragehousesthatofferdiscountsandsomeofthemhaveavailableaccountsthatofferalloftheservicesthatareofferedbyacheckingaccount.\par\pard\par\pard\ql\ul0\nosupersub\cf15\f16\fs36IndianStockExchange:\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Inactualitythebrokerageindustrycontinuestodeveloprapidly.Manyofthetraditionalrestrictionsagainstbankingactivitieswithinthebrokerageindustryarebeingeliminatedandthebarriersaredisappearing.Duetothis,somecommercialbankshaveassubsidiaries,brokeragehousesthatofferdiscountsandsomeofthemhaveavailableaccountsthatofferalloftheservicesthatareofferedbyacheckingaccount.\par\pard\par\pard\ql\ul0\nosupersub\cf1\f2\fs31DifferentStockExchangeinIndia:\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs281.NationalStockExchange(NSE)ofIndia:\par\pard\par\pard\ul0\nosupersub\cf14\f15\fs28IntegratedinNovember1992,theNationalStockExchangeofIndia(NSE)wasinitiallyatariffforfeitingassociation.In1993,theexchangewascertifiedunderSecuritiesContracts(Regulation)Act,1956andinJune1994itstarteditsbusinessfunctioningintheWholesaleDebtMarket(WDM).TheEquitiesdivisionofNSEbeganitsoperationsin1994whilein2000thecorporationincorporateditsDerivativesdivision.\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28SomeNSEFiguresandFacts\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28TheequitiesdivisionofNSEcoversaround300Indiancities,

whileitsderivates}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28sectioncovers305cities.}\cell{}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\ql\ul0\nosupersub\cf36\f37\fs19\u-3913?\ul0\nosupersub\cf14\f15\fs28ThenumberofsecuritiesaccessibleforbuyingandsellinginNSEexchangein\par itsequitiesandderivatessectionare1,383and3,143respectively.\par\pard\par\pard\ql\ul0\nosupersub\cf36\f37\fs19\u-3913?\ul0\nosupersub\cf14\f15\fs28ThetotalamountofSettlementwarrantyfundinNSEequitiesdivisionand\par derivatessectionareRs2,085.25croresandRs6,018.30croresrespectively.\par\pard\ul0\nosupersub\cf36\f37\fs19\u-3913?\par\par\ul0\nosupersub\cf14\f15\fs28crores.\par\par\ul0\nosupersub\cf36\f37\fs19\u-3913?\par\par\ul0\nosupersub\cf14\f15\fs28around400Indiancities.\par\par\ul0\nosupersub\cf36\f37\fs19\u-3913?\par\par\ul0\nosupersub\cf14\f15\fs28basis.\par\par\ul0\nosupersub\cf36\f37\fs19\u-3913?\u-3913?\ul0\nosupersub\cf14\f15\fs28ThedailyturnoverofNSEequitiesdivisionisRs10,336.52crores,fordrivatesse

gmentisRs32,809.96croresandforWholesaledebtdivisionisRs13,911.57\par\parNSEusessatellitecommunicationexpertisetostrengthencontributionfromTheexchangeadministersaroundrs1millionofbuyingandsellingondaily\par\parItisoneofthebiggestVSATincorporatedstockexchangeacrosstheworld.Currentlymorethan8,500customersaredoingonlineexchangebusinesson\par\pard\par\pard\qlNSEapplication.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28(b)BombayStockExchange(BSE)ofIndia\par\pard\par\pard\qr\ul0\nosupersub\cf14\f15\fs28TheoldeststockmarketinAsia,BSEstandsforBombayStockExchangeandwasinitiallyknownas"TheNativeShare&StockBrokersAssociation."Incorporatedinthe1875,BSEbecamethefirstexchangeinIndiato


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becertifiedbytheadministration.ItattainedapermanentauthorizationfromtheIndiangovernment\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs28in}\cell{\ul0\nosupersub\cf14\f15\fs281956}\cell{\ul0\nosupersub\cf14\f15\fs28under}\cell{\ul0\nosupersub\cf14\f15\fs28Securities}\cell{\ul0\nosupersub\cf14\f15\fs28Contracts}\cell{\ul0\nosupersub\cf14\f15\fs28(Regulation)}\cell{\ul0\nosupersub\cf14\f15\fs28Act,}\cell{\ul0\nosupersub\cf14\f15\fs281956.}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx1080\cltxlrtb\clftsWidth1\cellx2160\cltxlrtb\clftsWidth1\cellx3240\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx5400\cltxlrtb\clftsWidth1\cellx6480\cltxlrtb\clftsWidth1\cellx7560\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\qlOvertheyear,theexchangecompanyhasplayedanessentialpartintheexpansion\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28ofIndianinvestmentmarket.AtpresenttheassociationisfunctioningascorporatizedbodyintegratedunderthestipulationsoftheCompaniesAct,1956.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28SomeBS

EFiguresandFacts\par\pard\par\pard\ql\ul0\nosupersub\cf36\f37\fs19\u-3913?\ul0\nosupersub\cf14\f15\fs28BSEexchangewasthefirstinIndiatolaunchEquityDerivatives,FreeFloat\par Index,USDadaptationofBSESensexandExchangefacilitatedInternetbuyingandsellingpolicy\par\pard\ul0\nosupersub\cf36\f37\fs19\u-3913?\par \ul0\nosupersub\cf14\f15\fs28supervision,clearance&Settlement\par\par\ul0\nosupersub\cf36\f37\fs19\u-3913?\par\par\ul0\nosupersub\cf14\f15\fs28economictraining\par\par\ul0\nosupersub\cf36\f37\fs19\u-3913?\par\par\ul0\nosupersub\cf2\f3\fs28(c)RegionalStockExchanges(RSE)ofIndia\par\par\ul0\nosupersub\cf14\f15\fs28ExchangeBSEexchangewasthefirstinIndiatoacquiretheISOauthorizationforBSEexchangewasthefirstinIndiatohavelaunchedprivateservicefor\par\parItsOn-LineTradingSystemhasbeenfelicitatedbytheinternationallyrenownedstandardofInformationSecurityManagementSystem.\par\parTheRegionalStockExchangesinIndiastar

tedspreadingitsbusinessoperationfrom1894.ThefirstRSEtostartitsfunctioninginIndiawasAhmedabadStock\par (ASE)followedbyCalcuttaStockExchange\par\par(CSE)in1908.\par\pard\par\pard\qjThestockexchangeinIndiawitnessedaflourishingphasein1980swiththeincorporationofmanyexchangesunderit.Inearly60s,ithasonlyfewcertifiesRSEsunderitnamelyHyderabadStockExchange,IndoreStockExchange,MadrasStockExchange,CalcuttaStockExchangeandDelhiStockExchange.TherecenttojointhelistwasMeerutStockExchangeandCoimbatoreStockExchange.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28CatalogofRegionalStockExchangesinIndia\par\pard\par\pard\ql\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28AhmedabadStockExchange}\cell


\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28BangaloreStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640


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\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28BhubaneshwarStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28CalcuttaStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28CochinStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupe

rsub\cf14\f15\fs28CoimbatoreStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28DelhiStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28GuwahatiStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28HyderabadStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28JaipurStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28LudhianaStockExchange}\cell


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\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28MadhyaPradeshStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28MadrasStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28MagadhStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640

\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28MangaloreStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28MeerutStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320

\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28OTCExchangeOfIndia}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28PuneStockExchange}\cell{\trowd\trautofit1\intbl


\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28SaurashtraKutchStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}


21/41

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28UttarPradeshStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf36\f37\fs19\u-3913?}\cell{\ul0\nosupersub\cf14\f15\fs28VadodaraStockExchange}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\ql\ul0\nosupersub\cf16\f17\fs40StockMarketofIndia:\par\pard\par\pard\qj \ul0\nosupersub\cf14\f15\fs28Stockmarketsrefertoamarketplacewhereinvestorscanbuyandsellstocks.Thepriceatwhicheachbuyingandsellingtransactiontakesisdeterminedbythemarketforces(i.e.demandandsupplyforaparticularstock).\par\pard\par\pard\qrLetustakeanexampleforabetterunderstandingofhowmarketforcesdeterminestockprices.ABCCo.Ltd.enjoyshighinvestorconfidenceandthereisananticipationofanupwardmovementinitsstockprice.Moreandmorepeoplewouldwanttobuythisstock(i.e.highdemand)andveryfewpeoplewillwanttosellthisstockatcurrent

marketprice(i.e.lesssupply).Therefore,buyerswillhavetobidahigherpriceforthisstocktomatchtheaskpricefromthesellerwhichwillincreasethestockpriceofABCCo.Ltd.Onthecontrary,iftherearemoresellersthanbuyers\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28(i.e.highsupplyandlowdemand)forthestockofABCCo.Ltd.inthemarket,itspricewillfalldown.\par\pard\par\pard\qj Inearliertimes,buyersandsellersusedtoassembleatstockexchangestomakeatransactionbutnowwiththedawnofIT,mostoftheoperationsaredoneelectronicallyandthestockmarketshavebecomealmostpaperless.Nowinvestorsdon\u8217?thavetogatherattheExchanges,andcantradefreelyfromtheirhomeorofficeoverthephoneorthroughInternet.\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28HistoryoftheIndianStockMarket\par\pard\par\pard\ql \ul0\nosupersub\cf14\f15\fs28OneoftheoldeststockmarketsinAsia,theIndianStockMarketshavea200years

oldhistory\ul0\nosupersub\cf37\f38\fs18.\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf2\f3\fs2818th}\cell{\ul0\nosupersub\cf14\f15\fs28Companywasthedominantinstitutionandbyendofthecentury,busine}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf2\f3\fs28Century}\cell{\ul0\nosupersub\cf14\f15\fs28uritiesgainedfullmomentum}\cell{\trowd\trautofit1\intbl


}\par\pard\par\pard\ul0\nosupersub\cf2\f3\fs281830's\ul0\nosupersub\cf14\f15\fs28BusinessoncorporatestocksandsharesinBankandCottonpresses\parstartedinBombay.Tradinglistbytheendof1839gotbroader\ul0\nosupersub\cf2\f3\fs281840's\ul0\nosupersub\cf14\f15\fs28Recognitionfrombanksandmerchantstoabouthalfadozenbrokers\ul0\nosupersub\cf2\f3\fs281850's\ul0\nosupersub\cf14\f15\fs28Rapiddevelopmentofcommercialenterprisesawbrokerage


22/41

business\par attractingmorepeopleintothebusiness\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs281860's\ul0\nosupersub\cf14\f15\fs28Thenumberofbrokersincreasedto60\par\pard\par\pard\qj\ul0\nosupersub\cf2\f3\fs281860-61\ul0\nosupersub\cf14\f15\fs28TheAmericanCivilWarbrokeoutwhichcausedastoppageofcotton\par supplyfromUnitedStatesofAmerica;markingthebeginningofthe"ShareMania"inIndia\par\pard\par\pard\ul0\nosupersub\cf2\f3\fs281862-63\ul0\nosupersub\cf14\f15\fs28Thenumberofbrokersincreasedtoabout200to250\ul0\nosupersub\cf2\f3\fs281865\ul0\nosupersub\cf14\f15\fs28AdisastrousslumpbeganattheendoftheAmericanCivilWar(asan\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28example,BankofBombaySharewhichhadtouchedRs.2850couldonlybesoldatRs.87)\par\pard\par\pard\qj Governmentpoliciesduring1980'salsoplayedavitalroleinthedevelopmentoftheIndianStockMarkets.TherewasasharpincreaseinnumberofExchanges,listedcompaniesaswellastheircapital,whichisvisiblefromthefollowingtable:\par\pard\par\pard\ql\ul0\nosupersub\cf2\f3\fs28S.\par\pard\par\pard{

\trowd\trautofit1\intbl{}\cell{\ul0\nosupersub\cf2\f3\fs28Ason31stDecember}\cell{\ul0\nosupersub\cf2\f3\fs281946}\cell{\ul0\nosupersub\cf2\f3\fs281961}\cell{\ul0\nosupersub\cf2\f3\fs281971}\cell{\ul0\nosupersub\cf2\f3\fs281975}\cell{\ul0\nosupersub\cf2\f3\fs281980}\cell{\ul0\nosupersub\cf2\f3\fs281985}\cell{\ul0\nosupersub\cf2\f3\fs281991}\cell{\ul0\nosupersub\cf2\f3\fs281995}\cell{\trowd\trautofit1\intbl

\cltxlrtb\clftsWidth1\cellx864\cltxlrtb\clftsWidth1\cellx1728\cltxlrtb\clftsWidth1\cellx2592\cltxlrtb\clftsWidth1\cellx3456\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx5184\cltxlrtb\clftsWidth1\cellx6048\cltxlrtb\clftsWidth1\cellx6912\cltxlrtb\clftsWidth1\cellx7776\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf2\f3\fs28No.}\cell

\cell

\cell

\cell

\cell

\cell

\cell

\cell

\cell

\cell

{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx864\cltxlrtb\clftsWidth1\cellx1728\cltxlrtb\clftsWidth1\cellx2592\cltxlrtb\clftsWidth1\cellx3456


23/41

\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx5184\cltxlrtb\clftsWidth1\cellx6048\cltxlrtb\clftsWidth1\cellx6912\cltxlrtb\clftsWidth1\cellx7776\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs281}\cell{\ul0\nosupersub\cf14\f15\fs28No.ofStockExchanges}\cell{\ul0\nosupersub\cf14\f15\fs287}\cell{\ul0\nosupersub\cf14\f15\fs287}\cell{\ul0\nosupersub\cf14\f15\fs288}\cell{\ul0\nosupersub\cf14\f15\fs288}\cell{\ul0\nosupersub\cf14\f15\fs289}\cell{\ul0\nosupersub\cf14\f15\fs2814}\cell{\ul0\nosupersub\cf14\f15\fs2820}\cell{\ul0\nosupersub\cf14\f15\fs2822}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx864\cltxlrtb\clftsWidth1\cellx1728\cltxlrtb\clftsWidth1\cellx2592\cltxlrtb\clftsWidth1\cellx3456\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx5184\cltxlrtb\clftsWidth1\cellx6048\cltxlrtb\clftsWidth1\cellx6912\cltxlrtb\clftsWidth1\cellx7776


\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs282}\cell{\ul0\nosupersub\cf14\f15\fs28No.ofListedCos.}\cell{\ul0\nosupersub\cf14\f15\fs281125}\cell{\ul0\nosupersub\cf14\f15\fs281203}\cell{\ul0\nosupersub\cf14\f15\fs281599}\cell{\ul0\nosupersub\cf14\f15\fs281552}\cell{\ul0\nosupersub\cf14\f15\fs282265}\cell{\ul0\nosupersub\cf14\f15\fs284344}\cell{\ul0\nosupersub\cf14\f15\fs286229}\cell{\ul0\nosupersub\cf14\f15\fs288593}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx864\cltxlrtb\clftsWidth1\cellx1728\cltxlrtb\clftsWidth1\cellx2592

\cltxlrtb\clftsWidth1\cellx3456\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx5184\cltxlrtb\clftsWidth1\cellx6048\cltxlrtb\clftsWidth1\cellx6912\cltxlrtb\clftsWidth1\cellx7776\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\qlNo.ofStockIssuesof\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs283}\cell{\ul0\nosupersub\cf14\f15\fs281506}\cell{\ul0\nosupersub\cf14\f15\fs282111}\cell{\ul0\nosupersub\

cf14\f15\fs282838}\cell{\ul0\nosupersub\cf14\f15\fs283230}\cell{\ul0\nosupersub\cf14\f15\fs283697}\cell{\ul0\nosupersub\cf14\f15\fs286174}\cell{\ul0\nosupersub\cf14\f15\fs288967}\cell{\ul0\nosupersub\cf14\f15\fs2811784}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx960\cltxlrtb\clftsWidth1\cellx1920\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx3840\cltxlrtb\clftsWidth1\cellx4800\cltxlrtb\clftsWidth1\cellx5760


24/41


}\par\pard\par\pard\qlListedCos.\par\pard\par\pard\qlCapitalofListedCos.\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs284}\cell{\ul0\nosupersub\cf14\f15\fs28270}\cell{\ul0\nosupersub\cf14\f15\fs28753}\cell{\ul0\nosupersub\cf14\f15\fs281812}\cell{\ul0\nosupersub\cf14\f15\fs282614}\cell{\ul0\nosupersub\cf14\f15\fs283973}\cell{\ul0\nosupersub\cf14\f15\fs289723}\cell{\ul0\nosupersub\cf14\f15\fs2832041}\cell{\ul0\nosupersub\cf14\f15\fs2859583}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx960\cltxlrtb\clftsWidth1\cellx1920\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx3840\cltxlrtb\clftsWidth1\cellx4800\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx6720\cltxlrtb\clftsWidth1\cellx7680\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\ql(Cr.Rs.)\par\pard\par\pard\qlMarketvalueofCapital\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs285}\cell{\ul0\nosupersub\cf14\f15\fs28971}\cell{\ul0\nosupersub\cf14\f15\fs281292}\cell{\ul0\nosupersub\cf14\f15\fs282675}\cell{\ul0\nosupersub\cf14\f15\fs283273}\cell{\ul0\nosupersub\cf14\f15\fs286750}\cell{\ul0\nosupersub\cf14\f15\fs2825302}\cell{\ul0\nosupersub\cf14\f15\fs28110279}\cell{\ul0\nosupersub\cf14\f15\fs28478121}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx960\cltxlrtb\clftsWidth1\cellx1920\cltxlrtb\clftsWidth1\cellx2880

\cltxlrtb\clftsWidth1\cellx3840\cltxlrtb\clftsWidth1\cellx4800\cltxlrtb\clftsWidth1\cellx5760\cltxlrtb\clftsWidth1\cellx6720\cltxlrtb\clftsWidth1\cellx7680\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\qlofListedCos.(Cr.Rs.)CapitalperListedCos.\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs286}\cell{\ul0\nosupersub\cf14\f15\fs2824}\cell{\ul0\nosupersub\cf14\f15\fs2863}\cell{\ul0\nosupersub\cf14

\f15\fs28113}\cell{\ul0\nosupersub\cf14\f15\fs28168}\cell{\ul0\nosupersub\cf14\f15\fs28175}\cell{\ul0\nosupersub\cf14\f15\fs28224}\cell{\ul0\nosupersub\cf14\f15\fs28514}\cell{\ul0\nosupersub\cf14\f15\fs28693}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx960\cltxlrtb\clftsWidth1\cellx1920\cltxlrtb\clftsWidth1\cellx2880\cltxlrtb\clftsWidth1\cellx3840\cltxlrtb\clftsWidth1\cellx4800\cltxlrtb\clftsWidth1\cellx5760


25/41


}\par\pard\par\pard\ql(4/2)(LakhRs.)\par\pard\par\pard\qlMarketValueofCapital\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs287}\cell{\ul0\nosupersub\cf14\f15\fs28perListedCos.(Lakh}\cell{\ul0\nosupersub\cf14\f15\fs2886}\cell{\ul0\nosupersub\cf14\f15\fs28107}\cell{\ul0\nosupersub\cf14\f15\fs28167}\cell{\ul0\nosupersub\cf14\f15\fs28211}\cell{\ul0\nosupersub\cf14\f15\fs28298}\cell{\ul0\nosupersub\cf14\f15\fs28582}\cell{\ul0\nosupersub\cf14\f15\fs281770}\cell{\ul0\nosupersub\cf14\f15\fs285564}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx864\cltxlrtb\clftsWidth1\cellx1728\cltxlrtb\clftsWidth1\cellx2592\cltxlrtb\clftsWidth1\cellx3456\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx5184\cltxlrtb\clftsWidth1\cellx6048\cltxlrtb\clftsWidth1\cellx6912\cltxlrtb\clftsWidth1\cellx7776


}\par\pard\par\pard\qlRs.)(5/2)\par\pard\par\pard\qlAppreciatedvalueof\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf14\f15\fs288}\cell{\ul0\nosupersub\cf14\f15\fs28CapitalperListedCos.}\cell{\ul0\nosupersub\cf14\f15\fs28358}\cell{\ul0\nosupersub\cf14\f15\fs28170}\cell{\ul0\nosupersub\cf14\f15\fs28148}\cell{\ul0\nosupersub\cf14\f15\fs28126}\cell{\ul0\nosupersub\cf14\f15\fs28170}\cell{\ul0\nosupersub\cf14\f15\fs28260}\cell{\ul0\nosupersub\cf14\f15\fs28344}\cell{\ul0\nosupersub\cf14\f15\fs28803}\cell{\trowd\trautofit1\intbl

\cltxlrtb\clftsWidth1\cellx864\cltxlrtb\clftsWidth1\cellx1728\cltxlrtb\clftsWidth1\cellx2592\cltxlrtb\clftsWidth1\cellx3456\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx5184\cltxlrtb\clftsWidth1\cellx6048\cltxlrtb\clftsWidth1\cellx6912\cltxlrtb\clftsWidth1\cellx7776\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\ql(LakRs.)\par\pard\par\pard\ql\par\pard\par\pard\qj

\ul0\nosupersub\cf2\f3\fs28Brokeragefirms\ul0\nosupersub\cf14\f15\fs28arethebusinessentitiesthatdealwithstocktrading.India,withanincreasingcapitalmarketandagrowingnumberofinvestors,hasanumberofbrokeragefirms.InIndianretailbrokerageindustry,thebrokeragefirmsprimarilyworkasagentsforbuyingandsellingofsecuritieslikeshares,stocksandotherfinancialinstrumentsandearncommissionforeachofthetransactions.ThereareplentyofbrokeragefirmsinIndia.Let'shavealookatthetop10brokeragefirmsinIndia.\par\pard\par\pard\qj Beforetalkinganythingabouttop\ul0\nosupersub\cf2\f3\fs28brokeragefirms\ul0\nosupersub\cf14\f15\fs28inIndia,let'shaveaglanceattheIndianretailbrokeragemarket,whichisgoingthrough


26/41

awonderfulphasewithhighgrowthrate.ThetotaltradingvolumeoftheIndianbrokeragecompaniesstoodatUS$1239.1billionintheyear2004,whichincreasedtoUS$1492.1billionin2005.ItisfurtherexpectedtoreachUS$6535.7billionbytheyear2015.\par\pard\par\pard\ql\ul0\nosupersub\cf15\f16\fs36Top10BrokeragefirmsinIndia:\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24KotakSecuritiesLimited}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Terminals}\cell{\ul0\nosupersub\cf39\f40\fs244320}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24SubBrokers}\cell{\ul0\nosupersub\cf39\f40\fs24910}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofEmployees}\cell{\ul0\nosupersub\cf39\f40\fs244008}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofBranches}\cell{\ul0\nosupersub\cf39\f40\fs24350}\cell{\trowd\trautofit1\intbl


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24KarvyStockBrokingLimited}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Terminals}\cell{\ul0\nosupersub\cf39\f40\fs241700}\cell


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24SubBrokers}\cell{\ul0\nosupersub\cf39\f40\fs2419000}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640


27/41

\row}


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofBranches}\cell{\ul0\nosupersub\cf39\f40\fs24581}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24Indiabulls}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Terminals}\cell{\ul0\nosup

ersub\cf39\f40\fs242876}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

}\par\pard\par\pard\ql\par\pard\par\pard{

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24SubBrokers}\cell{\ul0\nosupersub\cf39\f40\fs24NA}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640

\row}


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofBranches}\cell{\ul0\nosupersub\cf39\f40\fs24522}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24IL&FSInvestmartLimited}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}


28/41


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24SubBrokers}\cell{\ul0\nosupersub\cf39\f40\fs24NA}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofBranches}\cell{\ul0\nosupersub\cf39\f40\fs24294}\cell{\trowd\trautofit1\intbl


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24MotilalOswalSecurities}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Terminals}\cell{\ul0\nosupersub\cf39\f40\fs247923}\cell


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24SubBrokers}\cell{\ul0\nosupersub\cf39\f40\fs24890}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofEmployees}\cell{\ul

0\nosupersub\cf39\f40\fs242193}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofBranches}\cell{\ul0\nosupersub\cf39\f40\fs2463}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320


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\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24RelianceMoney}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}





\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24IndiaInfoline}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Terminals}\cell{\ul0\nosupersub\cf39\f40\fs24173}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640

\row}


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofEmployees}\cell{\ul


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0\nosupersub\cf39\f40\fs24NA}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24AngelBrokingLimited}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Terminals}\cell{\ul0\nosupersub\cf39\f40\fs245715}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24SubBrokers}\cell{\ul0\nosupersub\cf39\f40\fs24NA}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofEmployees}\cell{\ul0\nosupersub\cf39\f40\fs24284}\cell{\trowd\trautofit1\intbl


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofBranches}\cell{\ul0\nosupersub\cf39\f40\fs24NA}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}

\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24AnandRathiSecuritiesLimited}\cell




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\row}

}\par\pard\par\pard\ql\par\pard\par\pard{




\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24Name}\cell{\ul0\nosupersub\cf38\f39\fs24Geojit}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320\cltxlrtb\clftsWidth1\cellx8640\row}


\row}


\trowd\trautofit1\intbl{\ul0\nosupersub\cf38\f39\fs24No.ofEmployees}\cell{\ul0\nosupersub\cf39\f40\fs24343}\cell{\trowd\trautofit1\intbl\cltxlrtb\clftsWidth1\cellx4320




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}\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf17\f18\fs43Chapter:5\par\pard\par\pard\ql\ul0\nosupersub\cf40\f41\fs55CompanyOverview\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf41\f42\fs32OVERVIEW\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28BeginningasaBrokingHousein1998,wegrewintoBusinessHouse.\par\pard\par\pard\ql\ul0\nosupersub\cf13\f14\fs28WebroadenedourhorizonsandsteppedintothefieldofDepository,\par\pard\par\pard\ql\ul0\nosupersub\cf14\f15\fs28StockBroking,CommodityTrading,OnlineTrading(Equity,F&O,Currency&Commodity),LAKSHMISHREEtodaycommandsthestatus\ul0\nosupersub\cf13\f14\fs28ofbeingoneoftheleadingDepositoryParticipantofIndiainPrivate\ul0\nosupersub\cf14\f15\fs28Sector.Moreover,LAKSHMISHREEhasTradingTerminalOutletsforNSE&BSEspreadtoalmosteverynook&corner.\par\pard\par\pard\qjIntheworldofexpansionandgrowthwherewealthandinvestmentsplayanimportantroleinourlife,preservingandincreasingyourwealthisanambitiousandchallengingtask.Financialmarketshavebecomeglobal,interconnectedandhencemorevolatile.Toprofitfromthesechangesandchallenges,youneedadedicatedandreliablepartner.\par\pard\par\pard\qj \ul0\nosupersub\cf2\f3\fs28LAKSHMISHREE\ul0\nosupersub\cf14\f15\fs28isfocusedonEquityandCommodityBrokingwithRegisteredOfficeinMumbaiandbranchofficesinvariouscitiesofIndia.Wecombineastrongunderstandingoftheglobalequityandcommoditymarketswithaneverchangingdynamicstocreateinventivesolutionsforourclients.\par\pard\par\pard\ql\ul0\nosupersub\cf42\f43\fs29TheLakshmishreeAdvantage\ul0\nosupersub\cf43\f44\fs29:\par\pard\par\pard\ql\ul0\nosupersub\cf45\f46\fs29Largeavenuesofinvestmentsolu

tionsandfinancial\par\pard\par\pard\ql\ul0\nosupersub\cf43\f44\fs29servicesunderoneroof\par\pardPersonalizedsolutionandattentionoffered toeach\par\pard\par\pard\qlinvestors\par\pard\par\pard\qlResearchsupportandtimelyadvicebyourhigh-tech\par\pard\par\pard\ql\ul0\nosupersub\cf27\f28\fs28researchwing\par\pard\par\pard\ql\ul0\nosupersub\cf12\f13\fs28Anextensivenetworkofbranchoffices\par\pard\par\pard\ql\par\pard\par\pard\ql\ul0\nosupersub\cf27\f28\fs28Aperfectblendoflatesttechnologyandrichexperience\par\pard\par\pard\ql\ul0\nosupersub\cf43\f44\fs29Honesty,transparencyandfairnessimbibedinallour\par\pard\par\pard\ql\ul0\nosupersub\cf27\f28\fs28dealings\par\pard\par\pard\qj\ul0\nosupersub\cf49\f50\fs29Providersofoneofthebesttradingplatformsintermsof\ul0\nosupersub\cf43\f44\fs29speed,convenienceandriskmanagementtotradeinNSE,\ul0\nosupersub\cf13\f14\fs28BSE,F&O,NCDEX,MCX,,MCX-SX.\p

ar\pard\par\pard\ql\ul0\nosupersub\cf41\f42\fs32CorporateEthos\par\pard\par\pard\ql\ul0\nosupersub\cf50\f51\fs28OurVision\par\pard\par\pard\qj \ul0\nosupersub\cf51\f52\fs30Tobealeadingplayerinprovidingcompleteinvestmentsolutions,withrelentlessfocusoninvestorcare,through\ul0\nosupersub\cf43\f44\fs29superiorefficiencyandcompletetransparency.

Trend Analysis and Derivative Trading

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