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Table of Contents
Introduction 03
StockEdge 32
Further Learning 34
Contact Us 36
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How to Invest In Shares WithOnlyRs.5000
Chapter 1
Introduction
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How to Invest In Shares WithOnlyRs.5000
How to Invest In Shares With Just Rs.5000
Chapter 1
Introduction
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How to Invest In Shares WithOnlyRs.5000
Chapter 2
What
IsA
Stock Market?
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How to Invest In Shares WithOnlyRs.5000
Chapter 2
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How to Invest In Shares WithOnlyRs.5000
Chapter 3
An
Overview Of
The Indian
Stock Markets
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How to Invest In Shares WithOnlyRs.5000
Chapter 3
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How to Invest In Shares WithOnlyRs.5000
Market Indices:
Market Regulator:
SEBI -Securities and Exchange
Board of Indiais the main
governing body that regulates
the functioning of all the stock
exchanges, brokers, depositories,
mutual funds and other market
participants in India.
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How to Invest In Shares WithOnlyRs.5000
Chapter 4
What Are
Shares
Or
Stocks?
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How to Invest In Shares WithOnlyRs.5000
Chapter 4
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How to Invest In Shares WithOnlyRs.5000
Chapter 5
Pre-requisites
For Starting
Trading In Share
Markets In India
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How to Invest In Shares WithOnlyRs.5000
Chapter 5
Here are the essentials that you ICICI Direct, Sharekhan, Axis Direct,
need to start trading in share etc.are some of the popular share
market: brokers of India.
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How to Invest In Shares WithOnlyRs.5000
Chapter 6
How to
select a good
Broker?
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How to Invest In Shares WithOnlyRs.5000
Chapter 6
Here are the tips to select the right Quality of services provided:
stock broker for yourself: If you decide to go with an online
broker, then you need to make
Conduct an extensive
sure that their website works
research:
efficiently. Also, the website should
Firstly, you need to carry out a be able to handle huge traffic
thorough research about various during the peak hours.
brokers based onthereviewsof their
customers. It is important sincethe There is no doubt that technical
broker will be the one who will be difficulties might arise sometimes.
responsible forproviding various so your broker should provide you
investment services to you, and will with an alternative option to place
also help you to place orders for your orders during those times.
buying or selling shares. Having a Moreover, they should offer this
good broker will ensure that you have facility at no additional costs;
a good experience of transacting in
the stock market. A broker with a Extra services:
good customer service will make sure Apart from just managing your
they provide you with great service, portfolio and providing share
and most importantly, execute your trading services, your online broker
order on time. may sometimes provide advisory
services too. They should provide
Offers multiple investment you with good recommendations,
options: so that you know what to share to
trade and what not.
You can invest in various
otherfinancial productsother than
They should also keep you
shares in share market.These include
updated with the market
mutual funds, futures and options,
sentiments and how it will affect
etc.Your stock broker should give you
the various industries. This helps
access to these investment products
you in better and informed
so that you do not have to go
decision while trading in the
elsewhere to buy these.
market.
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How to Invest In Shares WithOnlyRs.5000
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How to Invest In Shares WithOnlyRs.5000
Chapter 7
Understanding
The
Online Trading
Platforms
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How to Invest In Shares WithOnlyRs.5000
Chapter 7
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How to Invest In Shares WithOnlyRs.5000
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How to Invest In Shares WithOnlyRs.5000
Chapter 8
Buying And
Selling Of
Shares Using
Various Types
Of Orders
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How to Invest In Shares WithOnlyRs.5000
Chapter 8
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How to Invest In Shares WithOnlyRs.5000
DisclosedQuantity:
The brokers server sends an
acknowledgement as soon as the order Placing an order with this condition
is received by it. Then, the broker allows you to disclose only part of
verifies all the details of the order and the order and the order gets
put it inthe queue for sending it to the processed in batches. For example,
exchange. Then, the exchange verifies if you placed an order to buy 2000
the particulars of the order and shares with a disclosed quantity of
accepts the order if there are no errors. 200 shares, then firstly the order of
200 shares is displayed in the
You can also modify you online order market and then, the next 200 and
to buy or sell the shares once your so on till the whole order is
original order is accepted by the executed.
exchange but not executed so far.
Once, the order is executed you cannot This box can be left blank and if you
make any changes to your order. want to fill it, the disclosed
quantityhas to be a minimum of
10% of the order quantity.
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How to Invest In Shares WithOnlyRs.5000
Chapter 9
How To Start
Investing In
Stock Markets?
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How to Invest In Shares WithOnlyRs.5000
Chapter 9
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How to Invest In Shares WithOnlyRs.5000
You should keep yourself updated with Price to earnings ratio (P/E):
the current market news and look out It is yet another important the
for internal and external indicators that financial ratio while analysing a
can affect the stock prices. These stock before investment. It helps in
includechanges in government ensuring that the stock is not
policies, political changes, companys overvalued. A high P/E ratio shows
management changes etc. that the stock is overvalued i.e. it is
Here are the various financial ratios selling for more than its value.
that shall help you in taking an Hence, a stock with a lower P/E
informed andwell-researcheddecision ratio is considered good.
while investing inthe stock market:
Price to earnings ratio =
Earnings per share (EPS): Price per share / earnings per share
It is the most basic and important
You can use the closing price of
financial ratio that you need to know
the previous day and calculate the
before making an investment in shares.
EPS by the above-mentioned
It basically indicates the profits that
formula to arrive at the P/E ratio
the company made in the last year
for a stock. Usually, a P/E ratio
divided by the number of shares issued
lesser than 15 is considered good.
in the market. Preferred shares are not
Also, the definition of higher or
included in the total number of shares
lower P/E ratio differs from
while calculating EPS.Hence,
industry to industry. Hence, you
EPS = cannot compare the P/E ratio of
Net profits (after deducting the dividends one company from one industry to
paid to preference shareholder)/ equity another.
shares issued in the market.
Price to book ratio:
So, while deciding whether to invest in
a stock or not, a higher EPS is This is calculated by dividing the
considered good. It shows the current market price of the share
company has a capability to generate by the book value of the share
higher profits. from the last quarter. It helps in
determining how much the
You should check the EPS of the last investor needs to pay for the net
five years. So, if the EPS has been assets of the company. The lower
growing over the past few years, then it P/B ratio indicates that the stock
is a good sign, but if the EPS has been is undervalued, but again like the
falling for the past few years, then you P/E ratio this definition varies from
should avoid the stock. one industry to another.
Price to book ratio= price per share/
book value per share
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How to Invest In Shares WithOnlyRs.5000
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How to Invest In Shares WithOnlyRs.5000
Chapter 10
Understanding
Brokerage
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How to Invest In Shares WithOnlyRs.5000
Chapter 10
Understanding Brokerage
The cost associated with the buying position is not closed on the same
and selling of shares is called the day and the shares are bought and
brokerage. It can be a little confusing kept in the demat account. The
to understand the concept of shares can be held for a number of
brokerage. If you ask the broker about days, months or even years until you
the fee they charge, they would say reach your target price,
0.05% for the intraday trades and
0.50% for delivery and if you negotiate Generally, the trading cost in India
further with them, the cost of includes the brokerage, securities
brokerage can come down up to 0.01 transaction tax, stamp duty, service
for intraday and 0.40% for delivery. tax and some other charges. Here
Apart from this, there are various other are the details of each cost
costs that are chargedbutarenot separately:
disclosed by the brokers. Hence, the
effective cost of brokerage becomes Brokerage:
different from the rates mentioned
above. To have a clear understanding It is charged on the basis of agreed
of this, you need to firstly understand percentage of the total cost of all
the concept of intraday and delivery the shares bought and sold.
trading.
Securities transaction tax (STT):
In Intraday trading you buy and sell
shares on the same day, and earn a It is another significant charge after
profit or loss from the difference in the brokerage. Inthe case of delivery
price at which you transacted. Since trading, STT is charged on both the
you buy and sell within the same day, buying and selling of shares but in
you don't carry forward any shares, and the case of intraday trading, STT is
no share enters or leaves your demat levied only on the selling of the
account. share. The STT is charged at 0.1% of
the total transaction cost of buying
Due to this, brokerage charged for or selling in case of delivery trading
intraday trading is generally quite low. whereas 0.25% of the total
transaction cost while selling the
However, in delivery trading,the shares in intraday trading.
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How to Invest In Shares WithOnlyRs.5000
It is charged both for the intraday In India, there are two depositories,
trading and delivery trading, it is namely NationalSecurities
chargeable only on the brokerage Depository Limited (NSDL) and
amount and does not include the Central Depository Services Limited
stamp dutyor STT. Currently, the (CDSL). These depositories keep the
service tax is charged at 15% of the shares in the electronic form with
brokerage amount. them. A small fee is hence charged
by the depositories in exchange for
Transaction charges: this service.
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How to Invest In Shares WithOnlyRs.5000
Chapter 11
Understanding
Capital GainsTax on
Share Trading
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How to Invest In Shares WithOnlyRs.5000
Chapter 11
Capital Gains Tax is yet another shares for more than a year and
important aspect associated with earn maximum profits.
share trading. There are basically two
types of capital gains tax: short-term Whereas in case if the shares are
capital gains tax and long term capital sold within one year of buying
gains tax. then, it is considered as a short-
term investment and it is
Inthe case of investments in shares, if chargeable to income tax at a flat
you sella stock after one year of rate of 15% irrespective of the tax
buying the share it is considered as slab in which you fall. This is
long term investment and there is no applicable only on the delivery
income tax on the long term capital trading, in the case of intraday
gain on selling of shares. Hence, it is trading, investors need to pay taxes
more beneficial to hold your on the basis of normal slab rates
investment in applicable to him.
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How to Invest In Shares WithOnlyRs.5000
Stock Analytics
StockEdge
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How to Invest In Shares WithOnlyRs.5000
StockEdge
Sinceyou are new to investing in the mark your preferred stock as
market, you can take advantage of the favourite toconstantly monitor
StockEdge mobile app. You can simply them withouthaving to put in a lot
download this app on your phone and ofeffort. This app is also equipped
learn about the market movements, with the various tools to help you
latest financial information of all the analyse and track the latest market
listed companies, technical analysis and trend. Also, do check out the latest
derivatives on the go. All the tutorials in the app which will
information is presented in a simple helpyou in learning about
graphical manner using the charts and investing in the market.
bars which makeit perfect for the new
entrants to absorb the information By providing completetrading
easily. resources under one platform, this
a perfect app for the investors,
You can view the stocks across traders as well as analysts.
thevarious industries or sectors and
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How to Invest In Shares WithOnlyRs.5000
Further Learning
Suggested
Courses
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How to Invest In Shares WithOnlyRs.5000
Suggested Courses
We hope that this book has given you a We strongly suggest that you
basic idea about what stock markets continue your learning by
are, how they function, and how to look gathering knowledge about:
for good stocks to invest in.
Fundamental Analysis
However, this is just the beginning, and
Technical Analysis
you will have to go deeper into the
Futures And Options
various concepts and techniques
Wealth Management
related to the markets.
Currency and Commodity
Markets.
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How to Invest In Shares WithOnlyRs.5000
Contact Us
+91 9903432255
info@elearnmarkets.com
www.elearnmarkets.com
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