Basics of Share Market | Enrich Success

Basics of Share Market - 2

Basics of Share market:- We Already Upload the First part of that article please read it first from here This is the Second Part of Share market for beginners and today We'll learn Corporate Actions from Basic that a Kid can Understand.



Read These 14 Terms that are Used in Share Market and Become Master of that. 

If you Watch CNBC then you understand this and if you don't watch then don't worry and start watching it. The Share Market opened at 9:55 AM and Close at 3:50 In Indian Standard Time (+5.5 hours ,GMT) You can convert it according to your country by just google. At That time people buys and sells shares of companies. 

1. Money Control

MoneyControl is a website which is used to get Data of any Shares. You can easily see the Graph and analytics of company for understand invest or not

2. Last Traded Price (LTP)

The Price at Which the Share Traded at the End of Share Market Session. 

3. Pre-Opening Market Sessions

It is a 15 Minutes Session from 9:00 AM to 9:15 AM (+5.5 GMT) To absorb Heavy Fluctuations in the market. 

4. After Market Orders (AMO)

A questions may be raised to your mind that 'Can I Buy Shares Only at Marketing Hours' The answer is NO. You can buy Shares also from 4:00 PM to 9 AM. 

Orders that are placed between 4:00PM to 9:00AM are called After Market Orders. We may place AMO's but they will get executed at 9:15AM (When Market Opens) 

5. Gap up Opening

If a share Price opens at a price higher than previous day's closing price then it is known as Gap up Opening. 

6. Gap Down Opening

If the share price opens at a price lower than previous day's closing price then it is known as Gap Down Opening

7. Bonus of 1:2

Means 1 Free Share for Every 2 Shares held. It's like Buy 2 and Get 1 for free.

8. Announcement Date

Date on which the Company Announces Bonus or Bonus Split

9. Record Date

Date on which you must have shares in your demat account to enjoy Bonus or Bonus Split Shares. If you have Shares on that time then you get bonus otherwise you'll lose the offer. 

10. Ex- Split / Split Date

Date on which shares starts trading in the revised price

11. Types of Investors

Their are 4 Types of Investors

• Retail Indivisual Investors (RII) :- People like you and me who Normally Buys and Sells share. 

• High Networth Individuals (HNI) :- Investors who Invests more than 2 Lakh Rupee. If you invests more than 2 Lakh Rupee then you are in HNI Catagory

• Domestic Institutional Investors (DII) :-

Banks 🏦, Insurance Companies, Mutual Funds. These Type of organisations are DII. If you know that Banks, Insurance companies and Mutual Funds use our money for Trading in Share Market and Give us Some interests from it. 

• Foreign Institutional Investors (FII) / Foreign Portfolio Investors (FPI) :-

As per the name, These are the Banks, Mutual funds, insurance companies of Other countries. For Example if a American Organization invests in Indian Company like TATA, then they are FII / FPI. 

12. Depositories

Shares can be in physical form like Forms and hard print or in demat form means De-Materialised means Online. 

To Convert physical share into demat share known as depositories

13. Depository Participants (DPs) or Broker

These are the Experts of Share Market and Helps us for guidance who Opens an Account with Depository and our account is indirectly connected with depository

14. Volume

No. Of Shares Which Are Traded on a specific day.