Lecture by CA Rachana Ranade

Jul 11, 2024

Lecture by CA Rachana Ranade

Introduction

  • CA Rachana Ranade thanked the audience for helping her reach 50,000 subscribers.
  • Ambitious goal: reach 500,000 subscribers.
  • Encourages sharing the channel with friends and relatives.
  • Proposed to give away the second lecture of the basics of the stock market series due to popular demand.

Giveaway Announcement

  • Giveaway includes free lecture sessions to select winners.
  • Announcement of winners towards the end of the videos.

Moneycontrol Website

  • Introduction to using www.moneycontrol.com to search for shares and information about company shares.
  • Explanation of the data shown for a specific company's share.

Key Terms and Concepts Discussed

  • BSE and NSE: Data shown and their relevance.
  • Closing Price: The price at which the share closed on the previous trading day.
  • Latest Traded Price (LTP): The most recent traded price; can change frequently.
  • Demand and Supply: Affects the share price on BSE and NSE.
  • Bid Price and Offer Price: The best prices for buying and selling shares.
  • Volume: The number of shares traded during the day.
  • 52-week high and low: The highest and lowest prices of the share in the last 52 weeks.

Reading the Share Information

  • Explained how to interpret different data points on the share information screen:
    • Previous close
    • Open price
    • High and low of the day
    • Volume

Pre-Opening Market Session

  • Pre-Opening Market (9:00-9:15 AM) helps in reducing price volatility when the market opens.
  • Orders are placed, matched, and stabilized in this session.

Execution Example

  • Example of share prices on BSE and NSE.
  • Explanation of Demand and Supply principles and how they affect trading prices.

Gap Up and Gap Down Opening

  • Gap Up Opening: Price opens higher than the previous day's close.
  • Gap Down Opening: Price opens lower than the previous day's close.
  • Unchanged Opening: Rare, price opens the same as the previous day's close.

Corporate Actions

  • Corporate Actions: Dividends, board meetings, AGMs, EGMs, bonuses, stock splits, and rights issues.
  • Bonus Shares: Example given of '1:2' meaning one free share for every two shares held.
  • Record Date and Ex-Bonus Date: Important to understand who is eligible for bonuses and dividends.

Market Participants

  • Different Investors: RIIs (Retail Individual Investors), HNIs (High Networth Individuals), DIIs (Domestic Institutional Investors), FIIs (Foreign Institutional Investors).

Clearing and Settlement

  • Explained the concept of Trading Cycle (T+2) and how shares and money are transferred between buyers and sellers.

Depository and Depository Participant (DP)

  • Depository: Entity that converts physical shares to electronic format (demat format). Examples: NSDL and CDSL.
  • Depository Participant (DP): Usually brokers facilitating transactions between the investor and depository.

Engagement and Appreciation

  • Acknowledgement of the community's support and valuable feedback.
  • Reading and appreciating user comments, announcing free lectures to select commenters.

Call to Action

  • Encouraged viewers to share the video widely to win free lectures.
  • Announcement to reward those who share the most.

Conclusion

  • Reiterated the significance of audience support for reaching future milestones.