stock market for beginers-2


How to create a wealth through stock market ? part-2 

Low / high - 

When the stock touches its lowest price from 9.15am to 3.30 pm, it is called low, in contrast when the stock makes a high price it is called high.

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52 week low / high - 

52 week i.e. when the stock makes the lowest price in a year, it is called 52 week low. When the stock makes the highest price in 52 weeks, it is called 52 week high.
 
The current price of a stock is also known as current market price / current price / CMP.

LTP - 
The last trade in the last traded value share is called LTP. Suppose now the share price is 10 rupees, then LTP is 10, in a few seconds it becomes 10.20 rupees, then LTP will become 10.20 rupees, LTP changes in a few moments.

Prev. Close - 

The last price of the stock which is at 3.30pm on tomorrow, is called previous close.


Open - 9.15am The price at which the stock opens when the market opens is called open.

Debt -. Debt tells us about the company's borrowings, how much is the debt on the company.

Cash equivalents - Cash equivalents are those which a company can easily convert into cash.

Cash - The cash that the company has in cash will be called cash.

Over-valued / Under-valued - New investors who come to the stock market, they have been told many times or they must have heard that when the stock is cheap, then they have to buy, but how will it be known that we are buying the shares of the company. Is it cheap or expensive? So let's know the formula

Value-EPS (8.5 + 2g) × 4.4 / y

In this, EPS - earning per share
G - profit growth 5 year
Y - corporate AAA bond yield india (Google search) (6.70)

Share market beginners
Let's understand from the example of a company, I am taking the example of hdfc bank company. screener.in is the app where you will get all the terms as you are seeing in the picture.

Value = 49.70 (8.5 + 2 × 19.25) 4.4 / 6.7

If you solve this then the answer will come 1256 and now see the current price of 1056 of hdfc bank, this means that it is cheaper than its under-valued stock. If the value was more than the current price, we would call it over-valued stock.

Market cap -. Market cap tells us the size of the company. The formula to reach the market cap is -
Market cap - price of one share × outstanding share

Let's understand the market cap with an example,
Suppose there is a company whose share price is 1 rupee.
no of outstanding share 1 crore
1 × 1 Crore = 1 Crore


Large cap company - 


Companies whose market cap is more than 20000 crores, it is called large cap company. Risk is also less in these companies. If you are investing for a long time, then these companies are right for you.


Mid cap companies -


 Companies that have a market cap of 5000 to 20000 crores are called mid cap companies. In these companies, the risk is more, but this company also gives more returns.


Small cap companies -


Companies whose market cap is less than 5000 crores are called small cap companies. These companies have the highest risk. Because these companies cannot survive on bad days, so they have more risk.

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