A PROJECT REPORT
ON Training Undertaken at ANGEL BROKING
Titled
´SERVICES OF ANGEL BROKING AND WORKING OF SHARE MARKETµ
Submitted in Partial Fulf illment for the Award of degree of Master of business Administration Session 2008 10
Submitted by:
Name: Neeraj Bilochi nd
M.B.A. 2
Sem
- Submitted To: Mr.Hemraj Kumawat Designation : Branch Manger
ACKNOWLEDGMENT
³The satisfaction Euphoria that accompany the successful completion of any work would be incomplete unless we mention the name of the person, who made it possible, who constant guidance and encouragement served as a beckon of light and crowned our efforts with success.´ I consider it a privilege to express through the pages of this report, a few words of gratitude and respect to those who guided and inspired in the completion of this project.´ I am deeply indebted to Mr. Vineet Bhandawat (Branch Manager) for giving me the opportunity to undergo my project in their esteemed organization and the their timely suggestions & Valuable guidance. I also want togive thanks to Mr. Hemant Arora (Sr. Sales Manager) Mr.Manish Gandhi (Sr. Relationship Manager) and Mr. Sanjay Panwar (Business Development Manager). They constantly encouraged me and showed the right path from day first till the completion of my project. I had visited almost all markets of Jaipur and collected information of the project. I have also done promotional activities under the constant guidance of my project guide. In the last but not no t the least, my grateful appreciation is also a lso extended to Mr. Mukesh Mandan (Administrative Head), Mr. Vishal M. Thomas (Placement Officer) and Mr. Sidharth Jain (Faculty-Financial Management) my thanks to all my faculties members, Parents and friends. However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers reade rs of this project report if they bring such mistakes to my notice.
NEERAJ BILOCHI
PREFACE
The MBA curriculum is so designed that student get enough practical knowledge of business world which helps them to explore their skills in the corporate world in future.
The MBA training helps the students to understand and gain knowledge about the industry and market environment. It develops skills of analyzing and interpreting problems through application of concepts and techniques of management. Trainee did a project for Angel Broking in Jaipur City. The study consists of the following chapters.
Introduction of Angel Broking Study of products of Angel Broking Analysis of client Satisfaction Conclusion
DECLARATION
I, Mr. Neeraj Bilochi , a student of Apex institiute of management & science, jaipur here by declare that this project is the record of authentic work carried out by me during the academic year 2009-2010 and has not been submitted to any other university or Institute towards towards the award of any degree. An attempt has been made by me to provide all relevant and important details regarding the topic to support the theoretical edifice with concrete research evidence. This will be he lpful to clean the fog surrounding the various aspect of the topic.
I hope that this project will be beneficial for the Organization.
Place: Jaipur Date:
(Neeraj Bilochi)
PROJECT PROFILE
Project Profile: ³ Marketing Strategies Of Angel Broking´ Objectives Of study: -
To Understand and analyse the marketing strategies of Angel Broking.
To understand and analyse online trading at Angel Broking.
To improv the format of DSR (Daily Sales Report)
Methodology Adopted: -
The methodology adopted for the present study was focus discussion, interview and close observation through in-house study. Since the project is based on action research it was necessary to build rapport rappo rt to collect maximum information from the Client. Hence the research spent considerable time with the people who reside in nearby encompassing city. The main focus was to do with the assessing the satisfaction level of investors in vestors and explore the possibility of more sound arrangement a rrangement of disseminating outlook information system.
Marketing Research: WHAT IS MARKETING RESEARCH Marketing research is the function which likes the consumers, customers & public t the marketer through information which is used to identify & define marketing opportunities & problems, generate, refine & evaluate marketing action; monitor marketing performances & improve understanding of marketing as a process. TYPES OF MARKETING RESEARCH On the basis of fundamental objectives of the research, marketing research projects are classified into two branches:
Exploratory Research
Conclusive Research
EXPLORATORY RESEARCH: It seeks to discover new relationships. All marketing research projects start with it. This is a preliminary phase & is absolutely essential in order to obtain a proper definition of problems at hand. The major emphasis is on the discovery of ideas & insight. Exploratory research looks for hypothesis in well-established fields of study. Hypothesis usually comes from ideas developed in previous researches or are delivered from theory. Hypothesis is tentative answer to the question that serves as guide for most of the research projects.
CONCLUSIVE RESEARCH: Conclusive research provides information that helps the executive so that he can make a rational decision. This study has done well while attempting to arrive at a more clear description of an apparent problem.
Data Collection Primary data: -
which is collected by new research called primary data.
Personal Interview
Close observation
Survey conduction
Group Discussion
Secondary data: - already existing data is called secondary data. I collected them by following method ±
Internet
Books
INTRODUCTION: Angel Broking Financial Services Limited was incorporated on January 10, 2000 as M/s Orbis Infotech Private Limited at New Delhi under the Companies Act, 1956 with Registration No. 55 103183. The name of Company was changed to M/s. Angel Broking Financial Services Private Limited on March 16, 2001 due to change in the main objects of the Company from Infotech business to Investment & Financial Services business. It became a Public Limited Company on February 27, 2004 and the name of Company was changed to M/s. Angel Broking Financial Services Limited.
And Now this company has achieved milestone by voted as
The Youngest Company of the year in ET500 Angel Broking Financial Services Ltd is a public company and listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange. The market capitalization of Angel Broking is approx US $ 800 million, and the consolidated net worth of the company is approx US $ 400 million. Angel Broking and its group
companies have attracted US $ 300 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Angel Broking ranks at 82nd position in the list of most valuable companies in India. Angel Broking is promoted by three engineers from the Indian Institute of Technology (IIT) Delhi. Foreign Institutional Investors (FIIs) and foreign funds ho ld over 60 percent shareholding of Angel Broking. Some of the large shareholders of Angel B roking are the largest financial institutions of the world such as Fidelity Funds, Capital International, Goldman Sachs, Merrill Lynch, Lloyd George and Farallon Capital. There are approximately over 40,000 shareholders of the company. Angel Broking Financial Services is a retail financial services company providing a diverse array of financial products and services, through its nationwide network of over 300 Angel Broking offices, and services over 2,50,000 clients spread across 1 10 cities in India. Angel Broking, along with its subsidiary companies, offer consumer loans, brokerage and depository services, personal loans, home loans and other financial products and services to the retail markets. Angel Broking, which has a workforce of over 10,000 full time employees, reported US $ 60 million in Profit Before Tax and US $ 45 million in Net Profit for the first nine months of the current financial year. Philosophy: Angel Broking has created a unique organization that is designed for you ± the Smart Investor ± . it passionately believe in the Smart Investor who wants to make his own educated investment choices and demands world class access to a full range of services and products ranging from Equities to Insurance, combined with the highest level of integrity, service and professionalism. Angel Broking is a full service investment firm offering clients access to a tremendous range of financial services from 135 locations across 95 cities. We have a strong team of over 1000 Client Relationship Managers focussed on serving customers unique needs. Our world class infrastructure, built with tens of crores of investment, provides our clients with real-time service, multi-channel & 24/7 access to all information and products. As we've expanded and developed to serve the needs of all kinds of investors, we've been guided by one underlying philosophy: You come first.
We are proud to introduce to you Angel Broking Professional NetworkTM that offers real-time prices, equity analysis, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focussed Relationship Managers who are available to help with your financial planning and investment needs. About Founders: The fast paced growth, diversification and consolidation of the Group has been possible due to the vision and leadership of the co-founders of Angel Broking. Sameer Gehlaut is the Chairman, CEO and Whole Time Director of Angel Broking. Sameer is an engineer from IIT, Delhi (1995) and has worked internationally with Halliburton in its international services business in 1995. He has utilized his experience with the international best practices and professional work culture at Halliburton to lead Angel Broking successfully. Rajiv Rattan is the President, CFO and Whole Time Director of Angel Broking. Rajiv is an engineer from IIT, Delhi (1994) and has rich experience in the oil industry, having worked extensively across the globe in highly responsible assignments with Schlumberger. Rajiv has managed remote exploration projects providing evaluation services for different clients in India as well as abroad. Saurabh Mittal is a Director at Angel Broking. Declared the best graduating student in IIT, Delhi in (1995), Saurabh was also one of the engineers selected by Schlumberger to work for its international services business in 1995 and gained experience of working in various global locations. He graduated as a Baker Scholar with an MBA from the Harvard Business School. He has also developed in-depth understanding of international financial markets.
FLAGSHIP IN OTHER SERVICE Angel Broking Insurance: ³When you hear the word Insurance, the words boring and mundane probably enter your mind.´ When it comes to business, you are right up there. Taking all those split second decisions, avoiding pitfalls and making sure your money works hard for you. But don't you think the business of life requires just as much attention and probably even more. That's we are proud to bring to you an offer exclusively for you. As a part of our endeavor to provide you with world-class products and services, Angel Broking gives you the opportunity to avail of the whole range of Birla Sunlife Insurance Products through the Angel Broking network of 1000 Relationship Managers over 135 locations nationwide. Which means you can take care of life, while taking care of business. As always, we put your needs first.
Loans: Personal Loan: ³ No questions. Only Loans.´ No matter where you work, or how much you earn, we offer you the shortest route to a loan with minimum paperwork and procedures. With Angel Broking Fast Loans, you can avail of easy loans for a minimum of Rs.10,000 to a maximum amount of Rs.1,00,000. Flexible loan tenor of up to 4 years (i.e. 1 month to 48 months). Loans available from a minimum of Rs.10, 000 up to a maximum of Rs.100,000. Easy monthly repayment through equated monthly installments (EMI). Easy documentation and quick disbursal
Home Loan: Angel Broking has commenced lending of Mortgage Loans to prospective customers under the flagship of Angel Broking Housing Finance Ltd. Here we enable homeseekers to access finance to buy, build, rent or improve their homes. We also provide plot loans, Loan against Residential, Commercial and Rental Property, thereby enabling the borrower to leverage the property owned to fund any legitimate needs be it Business Expansion, Child's Education, Child's Marriage or for holiday abroad.
Real Estate: Through its group companies, Angel Broking is also engaged in real estate development. The group companies recently made winning bids for the Jupiter and Elphinstone Mills in Mumbai in an auction carried out by the National Textiles Corporation (NTC), a Government of India undertaking. The company will now develop modern commercial complexes in the heart of Mumbai - the financial capital of India. Angel Broking' foreign partner, Farallon Capital made the first real estate related FDI investment in Angel Broking Properties Pvt. Ltd to buy Jupiter Mills immediately after the new FDI guidelines were introduced by the Government of India for real estate development in March 2005.
Angel Broking Resources Ltd: Angel Broking Resources Ltd, a 100 per cent subsidiary of Angel Broking Financial Services Ltd., has been established with the objective of evolving as an independent oil company over time. Our immediate short-term goal is to partner with oil companies who are willing to come to India and bid in the current NELP-6 round. We are ready to invest along with such companies for exploration blocks of mutual interest.
Angel Broking has grown its business by over 100% CAGR since inception. The growth of Angel Broking in a highly competitive market is a testimony of its quality services.
Highlights of Financial Condition of Angel Broking : Angel Broking reports fiscal 2006 revenues of Rs. 613.15 crores, YoY growth of 264%, and profits of Rs 253.36 crores, YoY growth of 347% New Delhi, India - April 24, 2006 Highlights Consolidated results for the quarter ended March 31, 2006 Income was Rs. 195.5 crore for the fourth quarter ended March 31, 2006; YoY growth was 179% Net profit after tax was Rs. 80.38 crore for the fourth quarter ended March 31, 2006; YoY growth was 236% Earnings per share increased to Rs. 4.63 from Rs. 2.02 for the corresponding quarter in the previous year; YoY growth was 129% Consolidated results for the year ended March 31, 2006 Income was Rs. 613.15 crore for the year ended March 31, 2006; YoY growth was 264% Net profit after tax was Rs. 253.36 crore for the year ended March 31, 2006; YoY growth was 347% Earnings per share increased to Rs. 15.61 from Rs. 5.10 in the previous year; YoY growth was 206% Others Total customers in the Securities Business increased to over 236,000 customers 10,069 employees spread over 306 offices in 113 cities as on March 31, 2006 for Angel Broking
Financial Services Limited and its group companies On behalf of Mr. L N Mittal, LNMIIVL paid Rs 89.16 crores to buy 8.2% stake of Angel Broking Credit Services Limited valuing the business at over Rs. 1,100 crores.
Board Of Directors: S.No
Name Designation
1
Mr.Sameer Gehlaut
2
Mr.Shamsher Singh Director
3
Mr.Aishwarya Katoch Director
4
Mr.Kartar Singh Gulia
5
Mr.Gagan Banga
6
Mr.Saurabh K Mittal Director
7
Mr.Karan Singh
Director
8
Mr.Rajiv Rattan
Whole Time Director
Chairman & Wholetime Director
Director Director
History of Capital Market The capital Market consists of two market. 1.
Primary Market
2.
Secondary Market
Primary market: Primary market deals with the issue if new instrument by the corporate sector such as equity share, preference share and debt instrument. Central and State govts. , Various public industrial
units (PSUs), statutory and authority such as state e lectricity boards and port trusts also issue bonds/debt instruments. Offer for subscription to securities is made to investing community. There are several majors players in primary market. These include the merchant bankers, mutual funds, financial institutions, foreign institutional investors (FIIs) and individual investors.
Secondary market: The secondary market or stock exchange is a market for trading and settlement of securities that have already been issued. The investors is holding securities sell securities through registered brokers/sub brokers of the stock exchange. Investors who are desirous of buying securities purchase securities through registered brokers/sub brokers of the exchange . It may have a physical location like a stock exchange or a trading floor. Since 1995, trading in securities is screen based and Internet based trading has also made an appearance in India. In secondary market there are the stock exchanges, stock brokers (who are members of the stock exchanges) , the mutual funds , financial institutions, foreign institutional investors (FIIs), and individual Investors
Securities and Exchange Board of India (SEBI): With the objective of improving market efficiency, enhancing transparency, checking unfair trade practice and bringing the Indian market up to international slandered, a package of reforms consisting of measures to liberalise, regulate and develop the securities market was introduced during the 1990s. This has changed corporate securities market beyond recognition in this decade. The practice of allocation of resources among different competing entities as well a s its terms by a central authority was discontinued. The secondary market overcome the geographical barriers by moving to screen based trading
National Stock Exchange (NSE): The National Stock Exchange commenced its operational in 1994 as a first step in reforming the securities market through improve technology and introduction of best practices in management. It started with the concept of an independent governing body without any broker representation thus ensuring that the operators¶ interests were not allowed to dominate the governance of the exchange.
Depository System: Before the NSE was setup, securities (Shares) were in physical form. The transfer was by physical movement of papers. There had to be a physical delivery of securities a process fraught with delays and resultant risk. The second aspect of the settlement relates to transfer of shares in favour of the purchaser by the company. The system of transfer of ownership was grossly inefficient as every transfer involves physical movement of paper securities to the issuer for registration, with the change of ownership being evidenced by an endorsement on the security certificate in many cases the process of tran sfer would much longer than the two months stipulated in the Company Act, and a significance proportion of transaction would end up as bad delivery due to faulty compliance of paper work, Theft, forgery, mutilation of certificates of a security. All this added to cost and delays in settlement, restricted liquidity and made investors grievance redressal time consuming and, at time, intractable. To obviate these problems, the Depositories Act, 1996 was passed. It provide for the establishment of depositories in securities with the o bjective of ensuring free transferability of securities with speed, accuracy and security. It does so by 1.
Making securities of public limited companies freely transferable, subject to certain
exception. 2.
Dematerialising the securities in the depository mode.
3.
Providing for maintenance of ownership records in a book entry form.
Two depositories, viz., NSDL and CDSL, have come up to provide instantaneous electronic transfer of securities.
The NSE introduce screen based trading system (SBTS) where a member can punch in to the computer the quantities of shares and the prices at which he wants to transact. The transaction execute as soon as quote punched by a trading member finds a matching sale or buys quote from counter party. SBTS electronically matches the buyer and seller in an order driven system or finds the customer the best price available in a quote driven system, and hence cuts down on time , cost and risk of errors as well as on the chances of fraud.
Trade Transaction: An Investor can get in two types of trade transaction i.e. 1.
Intraday Trade
2.
Delivery Trade
Intraday trade: - In this type of trading an investor can buy any share during the trading session but he has to sell this share before 3 P.M. otherwise the software of Angel Broking will sell it automatically.
Delivery Trade: - In delivery Trade Investor buy any share during the trading session but he is no more bound sell it on same day. It is basically for investment purpose he can sell his share whenever he wants.
Angel Broking IN JAIPUR Angel Broking started with its services on 1st July. It provides best banking and financial services to the people. The Branch manager Mr. Vineet Bhandavet along with his hard working staff has brought company Bank at the heights, in Jaipur
ORGANIZATION STRUCTURE
Branch Manager Senior Manager Sales Manager Sales Senior Relationship Manager (SRM) Business Development Manager (BDM) Relationship Manager (RM) Business Development Executive (BDE) Associate Relationship Manager (ARM) Dealer BSE
Yes
NSE
Yes
Weekday:
Monday to Friday: 9.00 ± 06.30
Weekend:
Saturday:
Week Off:
Sunday
9.30 ± 06 .30
Offerings
Angel Broking offers two products: 1.
NIB - Normal Angel Broking
2.
PIB - Power Angel Broking
³Get More At Angel Broking.´
NIB ± Normal Angel Broking: -
³A multitude of ways to access your account either through priority access to Relationship Manager over phone OR online access to your Account & Research Tools.´ Enjoy priority telephone access that gives you direct access to your Relationship Manager. Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes.
PIB ± Power Angel Broking: ³Trading just got faster´
It is advance trading software which great deals of versatility even at low band width assuring speed and total functionality ensuring speed and total functioning of a broker¶s terminal. An active trader market execute traders and get confirmation of the some computers terminal need to be 128 Bits Encrypted (Supported by explorer version 5 and above) Regardless of how the market is performing or which way the economic winds are blowing as traders, are researching, charting, crafting a strategy, buying and selling. Investors are getting in, getting out and moving on to the next trade. Choose from a comprehensive offering of accounts, platform and product. Customize technology and services to support the way of work.
Choose from a broad spectrum of sophisticated trading tools using a fast desktop Trading Software. - Trading just got faster.
Features of PIB: Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts Extensive Reports for Real-time Accounting
Angel Broking: ³ A Cut Above The Rest´ Service Industry is base on differentiation of the product and service Angel Broking is different from its competitors because of following reason ±
Internal Marketing: is to train and motivate employees to serve customers. The selection, training and motivation
of the employees will make a huge difference in customer satisfaction. In Angel Broking the employees are well trained and motivated to work and they work dedicatly. Because Angel Broking know that employee¶s attitude will promote stronger customer loyalty. Angel Broking designed a sound training programme and support and rewards for good performance. They can use Internet, internal newsletters, daily remainders, and employee roundtables to reinforce customer-centered attitude.
External Marketing: -
Describe the normal work to prepare, price, distribute and promote the service to customers. Its is mainly for customers to provide better service for this purpose Angel Broking is providing following unique services to his customers: -
1.
Relationship Managers who are dedicated to supporting customers trading and investing
needs. They always keep in touch with client and they give various tips to client by which he can invest in good stocks. 2.
Dealers everyday give confirmations of the client¶s whole day trading in the evening after
signing out from the Market.
Company
Internal Marketing
External Marketing
Employees
Interactive Marketing
Customers
Angel Broking is providing Funding for trading to its client on nominal rates of interest i.e.
on 18% limit of funding is as follow Delivery- for delivery trading Angel Broking providing 2 times funding Intraday- for this type of trading Angel Broking is proving 8 times funding without charging any interest.
Angel Broking Equity Analysis Angel Broking provide an analysis of more than 540
companies it include current and future planning of various companies but this service is optional for client. Building and maintaining customer¶s ideal portfolio demands objective, dependable information. Angel Broking Equity Analysis helps satisfy that need by rating stocks based on carefully selected, fact-based measures. And because we're not focused on investment banking, Angel Broking don't have the same conflicts of interest as traditional brokerage firms. This objectivity is an important difference in our ratings. The Angel Broking Equity Analysis model attempts to gauge investor expectations, since stock prices tend to move in the same direction as changes in investor expectations.
Stocks with low and potentially improving investor expectations tend to receive A or B ratings Stocks with high and potentially falling investor expectations tend to receive D or E ratings Over the next 12 months, A-rated stocks have a return outlook of strongly outperforming the market while E-rated stocks have a return outlook of strongly under performing the market. Find out more about using Angel Broking Equity Analysis
In today¶s scenario when all services are going to be online or in electronic form Angel
Broking is creating awareness of online trading that client can trade from anywhere from the World.
Risk management team of Angel Broking taking care of client portfolio and whenever the
value of his portfolio will go decrease by 30% client always informed by his Relationship Manager.
Angel Broking is providing a software called ³Power Angel Broking´ as describe above if
a client have his own PC and Internet then he can trade from his home or office.
In Angel Broking possibility of auction is very less because of large client base, so he
can sell shares anytime.
Depository Services: -
³Whatever your individual goals, we can help.´ Angel Broking is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialised shares. Angel Broking performs clearing services for all securities transactions through its accounts.
Company offer depository services to create a seamless transaction platform ± execute trades through Angel Broking Securities and settle these transactions through the Angel Broking Depository Services. Angel Broking Depository Services is part of our value added services for its clients that create multiple interfaces with the client and provide for a solution that takes care of all client needs
NRI Account You can now enjoy the convenience of hassle-free and fast way of trading in the Indian
Equity Markets through Angel Broking NRI Investor Services Our unique integrated service creates one window for all your trading, depository and banking needs. You can buy and sell on your computer using our NRI Trading Account Services, which have been seamlessly integrated with your Angel Broking Depository Account and with the HDFC NRE/NRO Bank Account.
We provide full access to the following services to help you trade seamlessly: Angel Broking NRI Trading Account - Provides access to comprehensive trading tools for independent NRI investors Angel Broking Depository Services - Integrated services for seamless delivery HDFC Bank Account - NRE/NRO Accounts with built in tax management solutions and facility to source all regulatory approvals Angel Broking Equity Analysis - Premium Research on 540+ companies updated daily How can Angel Broking manage its service: 1.
Gap between customer expectation and management perception: Management does not
always correctly perceive what customer want. For intense in Inidabulls a customer is expecting that he can buy share after deposited require check but he has to wait for 3 days and same happen with demand draft.
2.
Gap between management perception and service quality: Management might correctly
perceive customer¶s want but not set a performance standard. Like a form of an account should passed away from the all stages of processing but it mostly takes time of 10 days.
3.
Gap between service quality specification and service quality: Personnel might be
poorly trained, or incapable or unwilling to meet the standard or they may be held to conflicting standards, such as taking time to listen to customer and serving them fast. That is happen in Angel Broking.
4.
Gap between service delivery and external communication: customers¶ expectations are
affected by statement made by company representative and ads.
5.
Gap between perceived service and expected service: This gap occurs when the
customer misperceives the service quality. A client may be perceived wrongly like in infrastructure of Inidabulls but this will solved in new office of Angel Broking.
Promotion: Angel Broking is turning to marketing public relations to directly support corporate and product promotion and image making. Because public is any group that has an actual or potential interest in or impact on a company¶s ability to achieve its objective. Angel Broking has its team relationship manager that monitors the attitudes of organization¶s publics and distributes information and communications to built goodwill. The y are performing following five functions: 1.
Press Relations: - They present news about the organization in the most positive light.
2.
Product Publicity: - All Relationship managers are sponsoring efforts to publicize product
offerings by Angel Broking i.e. NIB and PIB.
3.
Corporate Communication: - They promoting understanding of the organization through
internal and external communications. 4.
Counseling: - All RMs advise management about public issues and company positions
and image during good and crises. Angel Broking is promoting its product by advertising by following medium: Electronic media: - By advertise its product via Television Print media: - By various Pam plates, brochures, etc. Canopy: - Angel Broking is now promoting its product by canopies. By Canopies company can know the potential area of the cities and segment of population to whom it should target. From above campaign we had good result we have come to know that public is interested to know about Angel Broking and shares trading. Infrastructure: - Angel Broking also try to demonstrate its service quality through Physical Evidence and presentation. Because if we talk about online security trading then we have to say that physical evidence will important for the company in Angel Broking office all client come everyday and they trade but with the time passing Angel Broking is growing and number of client increasing day by day so space of office is not sufficient for both staff members and clients also. To overcome this problem Angel Broking will shift in new office with and of July.
Summary: What a customer expect from the company: 1.
Wide range of services under one roof
2.
24 hours support and ease to access
3.
Personalized attention
What company offers to its customers: 1.
Extensive product range.
2.
Enhance customer experience.
3.
Personalize service through Relationship Managers.
4.
Under stand local market dynamics.
5.
Expanding geographical and online presence.
6.
Provide a wide array of services such as brokerage, depositary services, mutual fund
and equity distribution, commodities trading and consumer loans. 7.
Offer innovative products such as Power Angel Broking and Angel Broking Signature
Client Account. 8.
Improve customer education through in-house equity research.
9.
Improve customer interface and customer experience through technology.
10.
Continually invest in upgrading of systems.
1.
Improve speed and quality of services.
12. Enhance data mining to improve risk management processes.
FORMATING OF DAILY SALES REPORT (DSR): I have been assigned a work to improve format of daily sales report (DSR) which used by Business Development Executive (BDE). So I had made some changes in it to see new format please double click on following format Some new columns introduced by me in that format these are as following: 1.
Occupation: By this column we can know to which segment our BDE is targeting
whether he is using his energy in the right direction or he is wasting his energy.
2.
Existing A/C if any: If prospect have already an account in other company then we can
find out status of competitor. 3.
View / suggestions: By this column BDE can ask from prospect / client his view or
suggestions regarding service of Angel Broking it may complains of any present client of company. 4.
Competitor¶s Activity: BDE can write the activity of competitor¶s like any company may
opening account without charging any fee and because of this our BDE is unable to get his target
Next day contact: Here BDE can mention follow up which will done by him next day so that he cant bluff and make fool of any one or any of his senior can do cross checking of his call. What is a share?
A share represents the smallest recognized fraction of ownership in a publicly held business. Each such fraction of ownership is represented in the form of a certificate known as a share certificate. The breaking up of total ownership of a business into small fragments, each fragment
represented by a share certificate, enables them to be easily bought and sold.
What is a stock exchange?
The institution where this buying and selling of shares essentially takes place is the Stock Exchange.
In the absence of stock exchanges, ie. Institutions where small chunks of businesses could be traded, there would be no modern business in the form of publicly held companies. Today, owing to the stock exchanges, one can be part owners of one company today and another company tomorrow; one can be part owners in several companies at the same time; one can be part owner in a company hundreds or thousands of miles away; one can be all of these things. Thus by enabling the convertibility of ownership in the product market into financial assets, namely shares, stock exchanges bring together buyers and sellers (or their representatives) of fractional ownerships of companies. And for that very reason, activities relating to stock exchanges are also
appropriately enough, known as stock market or security market. Also a stock exchange is distinguished by a specific locality and characteristics of its own, mostly a stock exchange is also distinguished by a physical location and characteristics of its own. In fact, according to H.T.Parekh, the earliest location of the Bombay Stock Exchange, which for a long period was known as ³the native share and stock brokers¶ association´, was probably under a tree around 1870!
The stock exchanges are the exclusive centers for the trading of securities. The regulatory framework encourages this by virtually banning trading of securities outside exchanges. Until recently, the area of operation/ jurisdiction of exchange was specified at the time of its recognition, which in effect precluded competition among the exchanges. These are called regional exchanges. In order to provide an opportunity to investors to invest/ trade in the securities of local companies, it is mandatory foe the companies, wishing to list their securities, to list on the regional stock exchange nearest to their registered office.
Characteristics of Stock Exchanges in India
Traditionally, a stock exchange has been an association of individual members called member brokers (or simply members or brokers), formed for the express purpose of regulating and facilitating buying and selling of securities by the public and institution at large.
A stock exchange in India operates with due recognition from the government under the Securities and Contracts (Regulations) Act, 1956. the member brokers are essentially the middlemen who carry out the desired transactions in securities on behalf of the public(for a commission) or on their own behalf. New membership to a Stock Exchange is through election by the governing board of that stock exchange.
At present, there are 23 stock exchanges in India, the largest among them being the Bombay Stock Exchange. BSE alone accounts for over 80% of the total volume of transactions in shares.
Typically, a stock exchange is governed by a board consisting of directors largely elected by the member brokers, and a few nominated by the government. Government nominee include representatives of the ministry of finance, as well as some public representatives, who are expected to safeguard the public interest in the functioning of the exchanges. A president, who is an elected member, usually nominated by the government from among the elected members, heads the board. The executive director, who is usually appointed by the by the stock exchange with the government approval is the operational chief of the stock exchange. His duty is to ensure that the day to day operations the Stock Exchange are carried out in accordance with the various rules and regulations governing its functioning.
The overall development and regulation of the securities market has been entrusted to the Securities and Exchange Board of India (SEBI) by an act of parliament in 1992.
All companies wishing to raise capital from the public are required to list their securities on at least one stock exchange. Thus, all ordinary shares, preference shares and debentures of the publicly held co mpanies are listed in the stock exchange.
Exchange management Made some attempts in this direction, but this did not materially alter the situation. In view of the less than satisfactory quality, of administration of broker-managed exchanges, the finance minister in march 2001 proposed demutualisation of exchanges by which ownership, management and trading membership would be segregated from each other. The regulators are working towards implementing this. Of the 23 stock exchanges in India, two stock exchanges viz., OTCEI and NSE are already demutualised. Board of directors, which do not include trading members, manages these. Theses are purest form of demutualised exchanges, where ownership, management and trading are in the hands of three sets of people. The concept of demutualisation completely eliminates any conflict of interest and helps the exchange to pursue market efficiency and investors interest aggressively.
Role of SEBI The SEBI, that is, the Securities and the Exchange Board of India, is the national regulatory body for the securities market, set up under the securities and Exchange Board of India act, 1992, to ³protect the interest of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith and incidental too.´
SEBI has its head office in Mumbai and it has now set up regional offices in the metropolitan cities of Kolkata, Delhi, and Chennai. The Board of SEBI comprises a Chairman, two members from the central government representing the ministries of finance and law, one member from the Reserve Bank of India and two other members appointed by the central government.
As per the SEBI act, 1992, the power and functions of the Board encompass the regulation of Stock Exchanges and other securities markets; registration and regulation of the working stock brokers, sub-brokers, bankers to an issue (a public offer of capital), trustees of trust deeds, registrars to an issues, merchant bankers, under writers, portfolio managers, investment advisors and such other intermediaries who may be associated with the stock market in any way; registration and regulations of mutual funds; promotion and regulation of self- regulatory organizations; prohibiting Fraudulent and unfair trade practices and insider trading in securities markets; regulating substantial acquisition of shares and takeover of companies; calling for information from,undertking inspection, conducting inquiries and audits of stock exchanges, intermediaries and self- regulatory organizations of the securities market; performing such functions and exercising such powers as contained in the provisions of the Capital Issues (Control) Act,1947 and the Securities Contracts (Regulation) Act, 1956, levying various fees and
other charges, conducting necessary research for above purposes and performing such other functions as may be prescribes from time to time.
SEBI as the watchdog of the industry has an important and crucial role in the market in ensuring that the market participants perform their duties in accordance with the regulatory norms. The Stock Exchange as a responsible Self Regulatory Organization (SRO) function to regulate the market and its prices as per the prevalent regulations. SEBI and the Exchange play complimentary roles to enhance the investor protection and the overall quality of the m arket.
Membership
The trading platform of a stock exchange is accessible only to brokers. The broker enters into trades in exchanges either on his own account or on behalf of clients. The clients may place their order with them directly or a sub-broker indirectly. A broker is admitted to the membership of an exchange in terms of the provisions of the SCRA, the SEBI act 1992, the rules, circulars, notifications, guidelines, etc. prescribed there under and the byelaws, rules and regulations of the concerned exchange. No stockbroker or sub-broker is allowed to buy, sell or deal in securities, unless he or she holds a certificate of registration granted by SEBI. A broker/sub-broker compiles with the code of conduct prescribed by SEBI.
The stock exchanges are free to stipulate stricter requirements for its members than those stipulated by SEBI. The minimum standards stipulated by NSE for membership are in excess of the minimum norms laid down by SEBI. The standards for admission of members laid down by NSE stress on factors, such as, corporate structure, capital adequacy, track record, education, experience, etc. and reflect the conscious endeavors to ensure quality broking services.
Listing
Listing means formal admission of a security to the trading platform of a stock exchange, invariably evidenced by a listing agreement between the issuer of the security and the stock
exchange. ; Listing of securities on Indian Stock Exchanges is essentially governed by the provisions in the companies act, 1956, SCRA, SCRR, rules, bye-laws and regulations of the concerned stock exchange, the listing agreement entered into by the issuer and the stock exchange and the circulars/ guidelines issued by central government and SEBI.
Index services
Stock index uses a set of stocks that are representative of the whole market, or a specified sector to measure the change in overall behavior of the markets or sector over a period of time. India Index Services & Products Limited (IISL), promoted by NSE and CRISIL, is the only specialized organization in the country to provide stock index services.
Trading Mechanism
All stock exchanges in India follow screen-based trading system. NSE was the first stock exchange in the country to provide nation-wide order-driven, screen-based trading system. NSE model was gradually emulated by all other stock exchanges in the country. The trading system at NSE known as the National Exchange for Automated Trading (NEAT) system is an anonymous order-driven system and operates on a strict price/time priority. It enables members from across the countries to trade simultaneously with enormous ease and efficiency. NEAT has lent considerable depth in the market by enabling large number of members all over the country to trade simultaneously and consequently narrowed the spreads significantly. A single consolidated order book for each stock displays, on a real time basis, buy and sell orders originating from all over the country. The bookstores only limit orders, which are orders to buy or sell shares at a stated quantity and stated price. The limit order is executed only if the price quantity conditions match. Thus, the NEAT system provides an open electronic consolidated limit order book (OECLOB). The trading system provides tremendous flexibility to the users in terms of kinds of orders that can be placed on the system. Several time-related (Good-Till-Cancelled, Good-TillDay, Immediate-or-Cancel), price related (buy/sell limit and stop-loss orders) or volume related (All-or-None, Minimum Fill, etc.) conditions van be easily built into an order. Orders are sorted
and match automatically by the computer keeping the system transparent, objective and fair. The trading system also provides complete market information on-line, which is updated on real time basis. The trading platform of the CM segment of NSE is accessed not only from the computer terminals from the premises of brokers spread over 420 cities, but also from the personal computers in the homes of investors through the internet and from the hand-held devices through WAP. The trading platform of BSE is also accessible from 400 cities.
Internet trading is available on NSE and BSE, as of now. SEBI has approved the use of Internet as an order routing system, for communicating clients¶ orders to the exchanges through brokers. SEBI- registered brokers can introduce internet-based trading after obtaining permission from the respective Stock Exchanges. SEBI has stipulated the minimum conditions to be fulfilled by trading members to start internet-based trading and services.
NSE was the first exchange in the country to provide web-based access to investors to trade directly on the exchange. It launched Internet trading in February 2000. It was followed by the launch of Internet trading by BSE in March 2001. The orders originating from the personal computers (PCs) of investors are routed through the Internet tot eh trading terminals of the designated brokers with whom they have relations and further to the exchange of trade execution. Soon after these orders get matched and result into trades, the investors get confirmation about them on their PCs through the same Internet routes.
SEBI approved trading through wireless medium or WAP platform. NSE is the only exchange to provide access to its order book through the hand held devices, which use WAP technology. This serves primarily retail investors who are mobile and want to trade from any place when the market prices for st0ocks of their choice are attractive.
Demat Trading
A depository holds securities in dematerialized form. It maintains ownership records of securities in a book entry form and also effects transfer of ownership through book entry. SEBI has introduced some degree of compulsion in trading and settlement of securities in dematerialized form. While the investors have a right to hold securities in either physical or demat form, SEBI has mandated compulsory trading and settlement of securities in dematerialized form. This was initially introduced for institutional investors and was later extended to all investors. Starting with 12 scrips on January 15, 1998, all investors are required to mandatorily trade in dematerialized form in respect of 2,335 securities as at end-June, 2001.
Since the introduction of the depository system, dematerialization has progressed at a fast pace and has gained acceptance among the participants in the market. All actively traded scrips are held, traded and settled in demat form. The details of progress in dematerialization in two depositories, viz., NSDL and CDSL., are presented as below:
In a SEBI working paper titled µDematerialization: A Silent Revolution in the Indian Capital Market¶ released in April 2000, it has been observed that India has achieved a very high level of dematerialization in less than three years¶ time, and currently more than 99%of trades settle in demand form. Competition and regulatory developments facilitated reduction in custodial charges and improvements in qualities of service standards. The paper observes that one imminent and apparent immediate benefit of competition between the two depositories is fall in settlement and other charges. Competition has been driving improvement in service standards. Depository facility has effected changes in stock market microstructure. Breadth and
depth of investment culture has further got extended to interior areas of the country faster. Explicit transaction cost has been falling due to dematerialization. Dematerialization
substantially contributed to the increased growth in the turnover. Dematerialization growth in India is the quickest among all emerging markets and also among developed markets excepting for the U.K and Hong Kong.
Stock market Stock market is known as the cradle of capitalism. It is a place where companies come to raise their share capital and investors go to invest their surplus funds. Stock market essentially discharges the functions of "the invisible hand" that channels investment into the most productive ventures so as to optimize the overall productivity of the economy. Stock Market is a place where financial instruments like shares, debentures, commercial papers, bonds etc are bought and sold. Stock markets are popularly known as stock exchanges. There are many popular stock markets in the world. NASDQ, Tokyo Stock Exchange, London Stock Exchange are the most popular of the lot. There are many participants in a stock market. Investors, Speculators, Arbitrators, Traders are different type of participants of a Stock Market. Brokers are intermediaries who bring together various participants in a Stock Market. Most important function of the stock market is to facilitate trading of financial instruments. Brokers submit a quote at the stock market on behalf of their clients. Quotes are specific to the scrip. The quote of the buyer is matched to the quote of the seller and the transaction takes place. All transactions entered in a stock market are guaranteed by the Stock Exchange. That means if the buyer or seller fails to meet his obligation, the stock exchange steps in and meets the commitment of the participant. This instills a lot of confidence and credibility about the sanctity of the transaction amongst the investing public. That is the reason why a stock exchange is preferred by investing public to a gray market in shares even though the latter has much lower transaction cost. All the participants in the stock market have the same objective i.e. to make a profit. Investors invest in the stock market with the hope that market value of their investment will go up and they will be able to make higher returns than in bank deposits. Arbitrages buy in one market and sell in another market with an objective of making a profit. For example if the shares of Caltex are quoting at a lesser price at Amsterdam Stock Exchange in comparison to London Stock Exchange, arbitrages will buy at Amsterdam and sell at London. This will result in a rise in share price at Amsterdam and fall in share price at London, thus bringing in price equilibrium among various stock markets in the world. Speculators operate in the stock market with an objective to make quick money by guessing the direction of the stock market. If they expect the market to rise, they buy shares with a very small investment horizon. Similarly if they expect a correction in stock market, they sell shares, thus imparting an essential element of liquidity in the market. Those who expect a rise in the stock
market and buy relentlessly are known as bulls. Bulls keep the buying pressure and attempt to take the stock market to dizzy heights. Bull market is a market scenario where bulls have complete control over the stock markets. When bull market reaches its peak, investors will make huge profit. Many investors start booking their profit by selling the investments. Slowly the bulls find that there are more shares than they could perhaps buy in the stock market. When supply of shares exceeds the demand in the stock market prices start coming down. This is called correction. Correction is a normal phenomenon in any bull market. Some times if the sellers are huge in numbers, a negative sentiment takes over the stock market. Every one attempts to sell their investments with an objective to salvage profit or reduce losses. When this phase set in, bulls loose control. Sellers will control stock market. This phase is popularly known are bear run. Bull and Bear runs follow a cyclical pattern in a stock market. Normally in a booming economy, companies make huge profits, so markets tend to be bullish. When the trend of the economy reverses Stock Market experience a bear hug. Thus the Stock markets reflect the health if the economy and are often called as "barometers" of the economy.
Bombay stock market
The Bombay stock market is focused on the Bombay Stock Exchange Limited, popularly referred to as The Bombay Stock Exchange or BSE. The Bombay stock market is of international interest and the Bombay Stock Exchange index ± the SENSEX ± is today tracked worldwide. The Bombay Stock Exchange provides the Bombay stock market with a place for trading in equity, dept instruments and derivatives. The Bombay Stock Exchange Sensitive Index ± commonly known as the BSE Sensex ± is a value-weighted index consisting of the 30 largest and most actively traded stock on the Bombay Stock Exchange. The companies are representative of various sectors and the base value of the index is 100 on April 1, 1979. The base year of BSE Sensex is 1978-1979. These 30 companies account for roughly 20 percent of the market capitalization of the BSE and is naturally an important indicator for the Bombay stock market. The Bombay Stock Exchange was established in 1875 as "The Native Share & Stock Brokers Association" and is the oldest stock exchange in Asia. It was earlier also named The Stock Exchange, Mumbai. The Bombay stock exchange was the first stock exchange in the country that obtained permanent recognition from the Indian government and it has naturally played an extremely important role for the development of the Bombay stock market, as well as for the Indian stock market. The Bombay Stock Exchange received permanent recognition under the Securities Contracts (Regulation) Act, 1956, in the year of 1956. You can find this stock exchange at Dalal Street in Mumbai (the city formerly known as Bombay). Roughly 4,800 Indian companies are listed with the Bombay Stock Exchange and in 2007, the equity market capitalization was US$ 999 billion (Rs. 40.7 trillion). The Bombay stock
market is one of the five largest stock exchanges in the world when it comes to transaction volume and the Singapore Exchange (SGX) has made a strategic investment (5%) in the exchange for US$ 42.7 million. The Bombay stock market is huge and the Bombay stock exchange is by no means limited to the Bombay region; it reaches all over the country and is present in over 400 Indian cities and towns. The systems and processes have been designed to ensure market integrity and promote transparency. The Bombay Stock Exchange was once an Association of Persons (AOP), but it has now been changed into a demutualised and corporatised entity. This entity is incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by the SEBI (the Securities and Exchange Board of India). The Bombay Stock Exchange was granted with its Certificate of Incorporation in 2005, and received its Certificate of Commencement o f Business almost exactly 12 months later. The change from Association of Persons (AOP) to a demutualised and corporatised entity was naturally an important step in the history of the Bombay stock market. The demutualization caused a separation of ownership rights and trading rights, a way of handling previous concerns regarding both real and perceived conflicts of interest for the Bombay stock exchange. When it comes to organisation structure, the Bombay Stock Exchange has a Board of Directors responsible for creating major policies and exercise over-all control. The Board consists of professionals, Trading Members representatives, and the Managing Director of the Exchange. The everyday operations are managed by a team of professionals and the Managing Director & CEO. How does the stock
market work
How does the stock market work? This is certainly not an easy question to answer and if anyone could understand exactly how the stock market works they would become extremely rich ± if they wanted to of course. This doesn¶t mean that you should let a blind monkey take care of your investments; learning more about how the stock market works can increase your chances of making a nice profit and it will also make it easier for you to stay clear of common traps and pitfalls. So, how does the stock market work? To put it simply, companies choose to go public and issue shares because they need money. One of the first types of stocks was issued by traders who wanted to finance expeditions to India and China. Such a project was naturally very risky and really expensive, but if the expedition turned out to be a success and managed to bring silk, porcelain, spices, tea and other rare and valuable commodities to Europe the traders would become immensely rich. If, on the other hand, the ship would sink, be hijacked by pirates, or something similar, all the money invested in the project would be lost. High risk and high potential rewards. In order to gain sufficient founding, a trader could allow wealthy persons to invest in the project. If the expedition turned out to be a success, the investor would receive a
specified share of the profit. If the ship sunk or failed in some other fashion, the money invested would be lost. Unlike a normal loan, each investor would take the risk here and if the ship sunk, they could not force the trader to pay back any money. If you can understand this basic concept, you are actually well on your way of understanding how our modern stock market works. How does the stock market work? Like 17th century trading expeditions! Over time, stock markets emerged in all corners of the world and the art of stock trading became more and more complex. Today, a lot of people work full time trying to answer the question ³How does the stock market work?´ If you want to understand the nature of the stock market, learning the special ³stock market language´ used by these professionals is a good start. Do you for instance know what Leprechaun Leader is? How to avoid a falling knife? How to interpret a J. Lo? If not, its time to do some reading. (A Leprechaun Leader is a corporate manager or executive said to possess a hidden treasure. In Irish folklore, the Leprechaun is a mischievous creature that will only reveal its hidden treasure if you manage to catch and hold him. In finance markets, the mischievous and dishonest Leprechaun Leader will only reveal his protected offshore account if you, or preferably the police, manage to catch and hold him. Examples of Lepre-'con' leaders are the Enron leaders who only revealed their hidden off-shore treasures when justice finally caught them and managed to hold on to them.) How the stock market works
If you want to understand how the stock market first, you need to begin by familiarizing yourself with the terminology. A lot of people are highly stressed when they want to learn more about how the stock market works and do not devote any time to learning the basic. This is a problem, because you may very well make a few lucky investments in the stock market without knowing anything about the underlying factors, but without any basic knowledge it is very difficult for you to really understand how the stock market works. It will for instance be difficult for you to determine the various ways in which a sudden incident might affect the stock market in the long run, or how to read a report and make assumptions based on the figures.
What is a stock? A lot of people claim to know how the stock market works, but if you ask them simple questions such as ³what is a stock, r eally?´ they will soon reveal how shallow their understanding of the stock market really is. In financial markets, stock is the capital raised by a corporation (or by a so called joint-stock company) by issuing and distributing shares. If you hold at least a partial share of stocks, you are a shareholder (also referred to as stockholder). Stocks can be held by individuals as well as by companies, including corporations. Listing a company on the stock market is a way of brining money into the company. Once a company has listed itself on the stock market, it will be expected to strive to increase shareholder
value. Understanding why companies choose to list themselves on the stock market is one of the keys in understanding how the stock market works.
What is a shareholder/stockholder? As a shareholder/stockholder, you will be granted special privileges which in turn will depend on your class of stock. You can for instance be allowed to vote on important matters such as board elections, have a right to a specific share when company income is distributed, and have a right to a share of the assets if the company is liquidated. You can also be entitled to purchase new shares. Common stock, preferred stock, dual class stock, treasury stock and golden share are all examples of different types of stock t hat comes with different sets of rights for the shareholder. If you want to fully understand how the stock market works, you should ideally do some reading on these different types of stocks. Being a shareholder doesn¶t simply mean having the right to a share when everything goes well; it also means having a share in the problem when things turn bad. Unfortunately a lot of people think they know how the stock market works, but they have failed to grasp this simple truth. As mentioned above, shareholders typically have the right to receive company assets if the company is liquidated. This right is however subordinate to the rights of creditors, and you will therefore only receive assets once all the creditors have been paid of. Since companies that undergo liquidation typically are deep in dept or have very limited assets, you cannot expect to receive anything in the event of liquidation. The good thing is that you will only loose the amount of money you used to purchase your share; the creditors can not take anything else from you (as long as you haven¶t done anything illegal). This is how the stock market works. How
to invest in the stock market
Telling anyone else how to invest in the stock market is very difficult, because every person has its own set of goals, values and personal characteristics that will determine which type of investment style that is ideal. If anyone tells you that they know exactly how to invest in the stock market, be suspicious because the stock market is an ever shifting market where nothing is certain. A lot of people make big money on selling information about ³sure´ ways of making a fortune on the stock market, but you should always ask yourself this ± if this person knows exactly how to invest in the stock market, why is he or she trying so hard to sell you a book, an audio-tape or some other form of investment information? Why is he/she not extremely wealthy, slouching the days away on some tropical island with a nice drink and some calypso music? There are naturally reputable people out there that actually like to share their experience and teach others about how to invest in the stock market, but there are a lot of crooks as well. Be cautious. If you want to learn more about how to invest in the stock market, you should never relay on a single source of information. Even if you find a great book, teacher or website, you should always check the information against other sources. This is not because people blatantly lie about how to invest in the stock market (well, quite a few does actually), but because telling anyone else how to invest in the stock market is like telling someone how to make love ± there are no
simple truths and no roadmap to follow. Listening to others and benefiting from their advice is great, but sooner or later you have to start making your own mistakes. There is no way of safeguarding yourself against every possible incident. While in the process of learning how to invest on the stock market, you will most likely stumble over your fair share of strange terms and buzzwords. Just like any other profession ± from plumbers to paupers ± stock brokers, financial analysts and their kind have developed their own set of terms and expressions. If you want to learn about how to invest in the stock market, learning their lingo is a good start. Once you understand the terminology it will be easier for you to sort the valuable terms from the buzzwords, and it will be much less difficult for you to o btain the information you are really looking for. Let¶s start out with a two examples: Cardboard Box Index Estimating industrial production is difficult, but the cardboard box index can give you a few clues. The cardboard box index is simply the output of cardboard boxes. Since approximately 7580 percent of all non-durable goods in North America (and in many other markets) are shipped in corrugated containers, a high amount of produced cardboard boxes indicates that a high amount of cash is being invested by goods producing companies. You can use this to your advantage when in doubt about how to invest in the stock market, but it should never be your sole indicator. Daisy Chain A Daisy Chain is a group of investors who engage in a type of fictitious trading or wash selling in order to artificially inflate the price of a security. If you notice that a stock rises dramatically, you might be tempted to quickly make a purchase to gain from the increase. If you make a haste decision without first investigating the stock, you may however fall prey to a Daisy Chain and you risk being stuck with a stock that continues to depreciate long after the Daisy Chain members have sold all their own stock for a nice profit. If you want to invest in the stock market you should be especially careful with stocks in limited volumes, since manipulating the price is much more difficult in stocks with heavy volumes. Daisy Chains typically pick stocks with low liquidity and realizing this is important if you want to learn how to invest in the stock market.
Stock market for beginners Stock market for beginners: fast gambling or long-term investments? If you want to learn more about the stock market for beginners you should start by asking yourself how you view the stock market and what you plan on doing there. Do you see the stock market as a form of casino where you can make, or loose, a quick buck? Or do you want to use the stock market for long-term investments? There is no ³right or wrong´ here; different people simply have different objectives, but it is important to realize what your objectives really are before you start investing money. Otherwise you might end up making unwise decisions that do not serve your goals.
Stock market for beginners: learning the basics Before you start investing any money, you should begin by learning the basics. You don¶t have to spend 4 years at the university getting a degree in finance, but you should at least devote a few weeknights to some basic stock market for beginners articles. If you learn the basic, you will be less prone to fall for simple tricks. Beginners with no basic understanding of the stock market are for instance more prone to panic every time they read a newspaper headline that they perceive as saying something bad about the company or the general market in which they have invested. Learning the words used by investors is one part of the essential ³stock market basics´ for stock market beginners. Stock market terminology might sound boring, but it is important to learn before you start investing your money. If you don¶t understand the words, how will you be able to understand when you stumble across important information that could be useful for your investment decisions? Below are just few examples of terms that you should learn more about before you start.
Stock When a corporation or a joint-stock company raises capital by issuing and d istributing shares, the raised capital is referred to as stock . In certain parts of the world, including the United Kingdom, Australia and South Africa, the term stock is instead used to refer to all kinds of marketable securities, including the bond. These countries normally use the word shar e where people in continental Europe and North America would use the word stock .
Market capitalization Market capitalization is the aggregate value of a corporation's issued shares. Market capitalization, colloquially referred to as market cap, is a way of measuring corporate or economic size since it consists of the stock price times the number of shares outstanding. The market capitalization will therefore show the public o pinion of how much a company is worth.
Initial public offering (IPO) A corporation's first sale of its common shares to investors on a public stock exchange is referred to as the initial public offering (IPO). The chief purpose of an IPO is to raise capital for the corporation. Listing your company on a public stock exchange is not a thing to do in haste, because all listed companies are required to follow a vast set of rules and are forced to adhere to strict reporting requirements. Doing all this can be an arduo us task for any company.
How to Plan Stock Market Investment?
Primary Keyword: Stock Market 1st Secondary Keyword: Trading Plan 2nd Secondary Plan: Stock Market Trading
In the stock market trading, you cannot afford to overlook the importance of a written investment plan. In fact, in most of the brokerage firms, the professional traders cannot trade until and unless they have a proper trading plan.
It is essential for every stock market trader to submit their trading plan and then get it approved to begin trading money on behalf of clients. After this, his trading skills may be judged. Accordingly, he gets compensated for proper following the plan and for his financial capabilities. On the other hand, in case of plan violation, he may have to face punishment in terms of losing money and instant rejection.
Considering this fact, it will be crazy on the part of non-professional traders to think of trading without having a proper investment plan. It is all the more difficult specially when things do not go our way and not take place according to our plan and even if they do, we can never expect them to remain so forever.
Before you start penning down your stock market trading plan; give a thought to your actual objective behind investment. What do you want to achieve through this trading account? Your answer that you simply want to make money is not sufficient as it cannot count as an investment objective. Instead, you need to have a specific objective such as surpassing the All Ords (All Ordinaries) by at least 10 percent annually.
The next step is to decide upon the type of industry and sector of shares you intend to invest in. It would be interesting to note here that investment in the housing, the energy or the retail sector will perhaps not be able to surpass the All Ords. It means that you will have to think of some whimsical but at the same time more rewarding sectors; it might be computer sector or telecommunications and so many others. Most probably, in this way, you will have a lot of volatility in your portfolio since you do not have other options but to accept it. Anyways, if you don¶t, then it is best not to indulge in that kind of industry in the first place.
There are certain essential ingredients of a successful stock market investment plan. Some of them listed as below:
You must have reasonable investment objective such as whether you are actively trading or it is just a long-term investment.
In which type of industries, sectors or types of shares you want to invest.
Another is diversification pan. Here you need to be sure about the number of various types of companies you want to buy on average. Ideally, the number must be in between 10 to 20 at maximum. Be sure about the cost of the share you intend to buy and also whether you would invest only in the country you are residing or overseas as well.
How much decline in the price you are ready to accept. Also, do not forget to use a stop-loss order here.
What will be your strategy in a potential huge market correction and what steps you will take to prevent and/or to fix these losses?
How frequently do you re-assess your investment strategy? Ideally, it must be done within 3 to 6 months and updated consistently with the changes in the market conditions.
In the end, after considering all these aspects, you will be able to go on your way to give a final touch to a very valuable as well as effectual stock market investment trading plan.
DISCUSSIONS In the era of Privatization ,where Investment companies are growing by leaps and bounds. Brokers has been able to maintain its foothold .Though a number of customers for other investment companies also mushroomed ,sold brokers still remains the favorite among both the individual & the corporate .
change in perception of people regarding brokers in India still take a bit time .ANGEL BROKING has consistently been catering the needs of the Indian public both in terms of return & safety ,ANGEL BROKING believes in providing quality & efficient products, instead of doing false marketing which can affect the company in long run .Besides this, after comparing different plans of ANGEL BROKING with its competitors plan I found different benefits which are present in the ANGEL BROKING .Plan & because of which ANGEL BROKING market share is increasing day by day .
When I compared another brokers & sub Brokers in jaipur city ,ANGEL BROKING is providing much better facility as compare to other competitors .if I take the example of ³PMS´ facility than I can say PMS of ANGEL BROKING is much better as compare to other PMS .ANGEL BROKING got ³AWAZ CONSUMER AWARD´in the year 2005 for ³India most Preferred stock broking company´. Angel Broking also providing best on line software for on line trading which is called ³SPEED TRADE´ .With the help of this software ANGEL BROKING become 2nd largest player in the on line market .
ANGEL BROKING in all perspective broking firm is almost same but still ANGEL BROKING is the best option to trade in shares Because still there are certain efficient features present in ANGEL BROKING which are not there in the competitors . in order to capture mor & more market share with its objective ANGEL BROKING can consider the recommendations given by me in the next column .
LIMITATION
The limitations that were faced in conducting the research were as under .
1.Information That I gathered through filling up of a Questionnaire took a bit of time and responds found it wastage of time so I convinced them sometimes .
2.Constraints of resources including time
3.Some of customers were unavailable at the time of the survey .
4.Within these 4 month the service level has improved a lot , so this data might show some errors.
5.Some responds show some bias towards some answers .
6.I had done my project on a sample size of 120 out of the share trader in jaipur & other city. So this may show some errors in the finding in the report .
7.All the company is providing different ±2 brokerages according to customers but we cant cut shot our brokerage as compare to another brokers & sub brokers .
SUGGESTIONS
Based on the study of the market and interacting with lots of Trader .I found that Trader are happy with the ANGEL BROKING ..
FOLLOWING ARE THE SUGGESTIONS
1.Proper communication is indeed to trade the various sales promotion schemes .
2.There should be Proper Team is required to open more account .
3.Should open more SHARE SHOPS in small cities .
4.They should be more flexible for brokerage concern ,to capture more market shares this is much required to they can cut brokerage for competitive maket in Kota city .
QUESTIONAIRE
Name of the customer
Age««. Occupation«««««.
Address««««««. Qualification««««..
Contact No«««««. 1) Whom do you prefer to open your demat account ? (a) India Bulls (c) Religare
(b) Angel Broking (d) Reliance Money
2) According to you who is the best in customer satisfaction ? (a) India Bulls (c) Religare
(b) Angel Broking (d) Reliance Money
3) According to you who is the best performer in last years ? a) India Bulls
(b) Angel Broking
(c) Religare
(d) Reliance Money
4) If you had been the advertisement of following company which one do you like the most effect full ? a) India Bulls (c) Religare
(b) Angel Broking (d) Reliance Money
5) According to you from the following companies who is having the highest customers ? a) India Bulls
(b) Angel Broking
(c) Religare
(d) Reliance Money
6) According to you from the following companies who is having the separate R & D department ? a) India Bulls
(b) Angel Broking
(c) Religare
(d) Reliance Money
7) According to you from the following companies who is having the accurate tips facility? a) India Bulls
(b) Angel Broking
(c) Religare
(d) Reliance Money
8) According to you from the following companies who is having the more branches in the country? a) India Bulls
(b) Angel Broking
(c) Religare
(d) Reliance Money
9) Who is having the good relationship with customers ? a) India Bulls
(b) Angel Broking
(c) Religare
(d) Reliance Money
10) How can a new customers earn from the share market ?
a) Investing in IPO
(b) Investing in long term
(c) Investing in short term (d) Investing in commodity market
BIBLIOGRAPHY
Mostly the study was done through the primery data collected , to obtain more information regarding the study and to substantiate it with theoretical proof, the following references were made:
Website visited:-
www.angelbroking.com www.icicidirect.com www.indiainfoline.com www.wikipedia.com www.sharemarketbasics.com www.investopedia.com
Publications:-
Investment Analysis & portfolio management Economics Times Investment India Investment Manager
