THE STOCK MARKET

Aditya Kumar Chatterjee

STOCK
A stock is a share (part) of a company
1/8 share of company
Company abc
1 stock of abc = 1/8 [12.5%] of abc
Company def

1/16 share
of company
1 stock of def = 1/16 [6.25%] of def
STOCKS AND SHARES

A company must have money to start
and carry on its business .
Often it obtains this money by selling
shares in the ownership of the
company.
STOCK MARKET
A stock market is a place where stocks
of companies are bought and sold.
CONSIDER THE AKC CORPORATION
Business Plan - Selling lemonade at malls

Item Cost in Rupees
[For 5000 glasses]

Lemon - 5000
Salt - 50
Sugar - 500
Water - 1000
Glasses - 500
Labour/Salary - 600
Transportation - 250
Rent - 1000
Miscellaneous 1100
Total Cost = 10,000

One glass of lemonade will sell for Rs 5
Expected total income = Rs 25,000
Pie Chart Showing Cost of Items
49%
5%
1%
10%
5%
10%
6%
3%
11%
LEMON
SUGAR
SALT
WATER
GLASSES
RENT
SALARY
TRANSPORTATION
MISC
CONSIDER THE AKC CORPORATION
Business Plan - Selling lemonade at malls

Cost = Rs. 10,000
Income = Rs. 25,000
Profit = Rs. 15,000

AKC Corp. needs to raise Rs. 10,000 to start business

So, let us look for 10 investors, each buying a 10% share by
putting in Rs. 1,000 each

If the company is successful, each investor will receive 10%
of profit, and their original investment back


SENSEX
It is the average price of certain selected stocks which are traded at the
Bombay Stock Exchange.
Sensex comes from the words SENSitive indEX

Some examples of companies included in the SENSEX currently are:
ICICI Bank
State Bank of India
Larsen & Toubro
Reliance Industries
Steel Authority of India Limited
SENSEX
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Sensex
Month Close Price
Jun-08
13462
Jul-08
14356
Aug-08
14565
Sep-08
12860
Oct-08
9788
Nov-08
9093
Dec-08
9647
Jan-09
9424
Feb-09
8892
Mar-09
9709
Apr-09
11403
May-09
14625
BRITANNIA
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Britannia
Month Close Price
Jun-08 1435.10
Jul-08 1384.95
Aug-08 1440.00
Sep-08 1332.95
Oct-08 1173.00
Nov-08 1101.65
Dec-08 1324.90
Jan-09 1388.60
Feb-09 1315.05
Mar-09 1409.40
Apr-09 1601.70
May-09 1712.90
MARUTI SUZUKI PRICES
Maruti Suzuki
Month
Close
Price
June-08 617.75
July-08 574.90
August-08 650.40
September-08 687.15
October-08 564.45
November-08 535.85
December-08 520.10
January-09 571.00
February-09 677.60
March-09 775.10
April-09 815.70
May-09 1021.55
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LEMON
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WATER
GLASSES
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SALARY
TRANSPORTATION
MISC
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Day Number
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Price Movement of Stock XYZ Corporation
THE STOCK MARKET
Aditya Kumar Chatterjee