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The stock market is one kind of capital market where the stocks are of the different companies
are traded. DSE, floor trading was started with open cry-out auction system. Now trading has
become automated, led by the DSE through the central depository. In the present automated
trading environment, bids/offers, depth, and required broker particulars are all recorded and can
be retrieved for future reference.
Types of stock market:
There are two types of stock markets such as,
Primary market
Secondary market
B/O Account
Sell / hold
Fill it up, sign it, enclose to recent color pp size photograph and photocopy of nationality
certificate / passport and a certificate from the manager of the bank account.
The DP will input your data into the online server of CDBL.
Collect IPO application form from DSE or its broker offices Bankers to the issue.
Submit the form along with the subscription money to the selected bank.
Over- subscribed
Under- subscribed
Subscribed fully
your application is successful in the lottery, the issuer shall deposit your shares in your concerned
B/O account.
If not successful in the lottery the issuer shall refund your subscription money by account payee
Cheque or warrant payable to applicant.
Then you have to deposit the refund warrant to your bank for clearance. Thus your money will
be returned. So there is no loss in the IPO.
Sell / Hold:
Check the B/O account and take a statement of holdings.
Now, one can sell the shares or hold it.
If you sell it, get capital Gain, if you hold its price may rise and may get dividend or stocks.
The particulars need to know before applying for IPO:
Companys sponsors have good financial track record and are not loan or tax defaulters.
Share issue price is as per net asset value and present income based value.
This is well known as stock exchange, is a secondary market a trading market. It is structured
to provide liquidity and marketability to the security industry.
It is a market where you can buy and sell stocks.
We shall discuss here:
Fundamental analysis
Technical analysis
Fundamental analysis:
Fundamental analysis is the process of looking at a business at the basic or fundamental financial
level. This type of analysis examines key ratios of a business to determine its financial health and
gives you an idea of the value of its stock.
Many investors use fundamental analysis alone or in combination with other tools to evaluate
stock for investment purposes. The goal is to determine the current worth and more importantly,
how the market values the stock.
Technical analysis:
Technical analysis is a method of evaluating stocks by analyzing statistics generated by market
activity, past prices and volume. Technical analysis do not attend to major a securitys intrinsic
value, instead they look at stock charge for patterns and indicators that will determine a stocks
future performance. Technical analysis has become increasingly popular over the past several
years, as more and more people believe that the historical performance of a stock is a strong
indication of future performance