TLDR;
This video is a crash course on the stock market for beginners. It explains IPOs, how the stock market works, the roles of NSE and BSE, the importance of a Demat account, and basic terms like Nifty, Sensex, bullish, bearish, and sideways. The video also touches upon different investment strategies and the importance of stock analysis.
- Understanding IPOs and how companies raise capital.
- The function of the stock market as a platform for investors to trade shares.
- The roles of NSE and BSE as stock exchanges.
- The necessity of a Demat account for stock market transactions.
- Key terminologies like Nifty, Sensex, bullish, bearish and sideways.
Introduction [0:00]
The video starts by highlighting Rekha Jhunjhunwala's substantial dividend income, using it as an example of the potential of stock market investments. It emphasizes that while her success is exceptional, anyone can start small and gradually learn to profit from the stock market. The video aims to provide a detailed explanation of the stock market basics, which are often glossed over in other videos.
Understanding IPOs [0:45]
The video explains the concept of an Initial Public Offering (IPO) using the example of a company valued at ₹1000 crore that wants to build a ₹300 crore factory. Instead of taking a loan, the company decides to sell a portion of its shares to investors to raise the required capital. This offering to the public is called an IPO. The public can then analyze the company and apply for the IPO, hoping to profit as the company grows. The ₹300 crore portion is divided into smaller units called shares, and if the company issues 10 crore shares, each share would be priced at ₹30. Investors can then buy these shares in lots.
How Stock Market Works [5:22]
The video explains how the stock market facilitates the buying and selling of shares between investors. For example, Mr. A buys two lots of shares (1000 shares) for ₹30,000 in an IPO. If he needs money later, he can sell these shares to Mr. B in the stock market, who believes the company will grow. The stock market allows investors to trade shares with each other, with the price fluctuating based on the company's performance and market sentiment.
NSE and BSE Explained [8:24]
The video describes the stock market as a marketplace where stocks are bought and sold, similar to a vegetable market. In India, the stock market is managed by two main exchanges: the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The BSE is the older exchange, while the NSE is the largest in India. Investors can buy and sell shares through these exchanges.
Role of a Broker and Demat Account [9:59]
The video explains that investors cannot directly buy or sell shares on the NSE or BSE. They need a broker to act as an intermediary. Angel One is given as an example of a brokerage firm. To trade, investors need to open a Demat account with a broker. The video provides a link in the description to open a free Demat account with Angel One.
How to Buy and Sell Shares Using a Broker App [12:02]
The video explains how to use a broker's mobile app (using Angel One as an example) to buy and sell shares. After logging in, users can search for a stock, view its details (like price, high, low), and see charts. To buy, they can select the number of shares and choose between a limit price or market price. Once the order is confirmed, the shares are added to the portfolio, where profit and loss can be tracked. The video also mentions a separate video (link in description) that provides a detailed guide on how to use the app.
Understanding Nifty and Sensex [17:28]
The video explains that Nifty and Sensex are indices that indicate the overall performance of the stock market. Nifty 50 includes the top 50 stocks on the NSE, while Sensex includes the top 30 stocks on the BSE. If Nifty or Sensex is rising, it indicates that the overall stock market is performing well. The video also shows how to check Nifty and Sensex values on Google.
Basic Stock Market Terms [22:14]
The video defines several basic stock market terms:
- Stocks vs. Shares: Stocks generally refer to holdings in multiple companies, while shares refer to holdings within a single company.
- Bullish, Bearish, and Sideways: Bullish means the market is going up, bearish means the market is going down, and sideways means the market is relatively stable.
- Sectors and Industries: Stocks are divided into different sectors (e.g., IT, banking, defense) to categorize companies by their business activities.
Investment Strategies and Analysis [25:20]
The video briefly touches upon different investment strategies like long-term investing and trading (intraday, positional, swing). It also mentions the importance of stock analysis, including fundamental and technical analysis, which will be covered in future videos. The video encourages viewers to comment if they want a part two of the course.
