Press the buzzer icon while agreeing so that you get the notification of the latest finance video. Namaskar, my list is Mukul, and welcome to the 2nd video of the Master Investor Series. If you haven’t watched the first video of this sequence then do watch it. In fact, there was a good response on the last video and there were some inquiries as well That is when the video will be published in this series. So let me tell you, we’ll maintain consistency and the video will be published every Friday. We’ll exit according to the numbering in this series. With that, I’ll recommend numerous videos during this video I’ll do their numbering because those videos are already stirred. Because those concepts are already covered and I don’t want to repeat them. So you can watch those videos And in the video which is likely to be exhausted next Friday, I’ll consider that you watched all those videos. I highly recommend to watch those videos Because as we’ll progress with the notion, it will be important to understand those age-old concepts.In this video, we’re going to talk about numerous simples. Like how a company is listed, how the trading is done, what are primary and secondary groceries? In fact, you discover numerous lingos or words whenever you be informed about stock exchange which we don’t understand So we’ll covering all those vocabularies in this video like Face value, Market value, Paid-up Capital, Authorized capital What are Sensex and Nifty, how does stock exchange function? What is a private limited and a public limited busines? How the participation of investors happens and how they get their returns. We’ll take the example of a company, we’ll start its excursion, produce some private investors in After that, we’ll see how the money of the public is involved, how its index is done, and finally how its trading is done.When we’ll understand this whole process, then we will understand the gaps in between these. This video is going to be in-depth. So I want you to watch this video with full accumulation And too watch the videos which I will recommend to you in between. So stay aria with this video. Before starting the topic, let me tell you that now you can also contact us on Whatsapp. If you have any stock market-related query Like you need initial hand-holding or you want to know that how should you start in the stock market based on your situation Then you can contact us on the thrown Whatsapp number which is 9292924848. You’ ll too get the e-mail id. Besides this, if you don’t have time to do the research and invest, then also you can contact us on Whatsapp. Now let’s start a company for example. Let’s say Rahul and Puja are a couple and they open a toy patronize. They think that there are no branded plaything supermarkets in India so why not open toy stores.And maybe there’s much possible in this in the future. They started with 1 doll accumulation, let’s exam it and then see how it cultivates. It’s very natural that starting of all business are small. We’ll call it place 1 Here, this company can start with a proprietorship or partnership. Proprietorship means when a person works on his/ her call. Let’s say if Rahul or Puja works on their own name then it’s called proprietorship. In this speciman, let’s assume that “theyre starting” a partnership firm in which the share percentage is 50-50% each. The percentage are differentiated. Remember that in a partner firm, drawbacks on these partners are unlimited. For limited liability, you need to open a Private Limited Company. I made a video on the advantages of a private restriction firm so you can watch it. So when we’re talking about shares, it symbolizes percentage owned. 50% ownership is of Rahul and 50% is of Puja. The same theory of share works in stock market When you buy a share, you buy a portion in that business. 1 share may be a very small percentage, maybe 0.001% but, you get that much ownership when you buy a share of any fellowship And it’s not like you can just buy 1 share, you can share any number of shares At least the number of shares floating in world markets and if your pocket allows then you can definitely buy those. So this was stage 1. They tested the market, they got a good response and they are now shifted to stage 2. Now the number of stores are 2, they gave their savings and they have begun their private limited fellowship because they researched their concept in world markets, and it worked well So now why not make it a private limited fellowship because if we want to raise stores in the future, Then we should have a private limited busines As I already said, I made a video on Private Limited Company, so you can watch it. The founders are too called the proponents. If you hear this term anywhere then consider them as the founders, so here Rahul and Puja are promoters of this private limited company.Here also, they retained the share 50 -5 0% and the total became 100%. And now comes the number of shares because a number of shares need to be allocated. So they decided that the total number of shares is likely to be 1 lakh and 50,000 in the name of each. The ethic of each share is decided. Here they continued the Face value of each share to be Rs. 10 And it can be anything like Rs. 1 or 100 as well there’s nothing chosen. Every company can decide the Face value of each share but remember that this Face value doesn’t alteration. Like if the best interests of the a share is increasing, we’ll say that the market value is increasing At what expenditure, we’re ready to buy that share. And I’ll share that what is the difference between Market value and Face value. You can consider the face value as the initial evaluate When promoters expend their fund, they expend on face value That entails if they got 50,000 shares then they gave Rs. 5 lakh each And when we divide it by 10, it comes out 50,000 shares each. So they started the company with Rs. 10 lakhs Earlier they were working in a partnership but when they gave it a legal skeleton, then they included Rs. 10 lakhs additional which is called paid-up capital. Now understand one more concept, Paid-up capital is Rs. 10 lakhs That intends all the issued shares are paid-up shares. 2nd is Authorized capital which necessitates if they want to allot shares or promote funds in future Then it’s called Authorized capital. That means they can raise up to Rs. 20 lakhs asset by supply shares. Today, they published 1 lakh shares and paid Authorized shares are 2 lakhs which is the maximum they can issue And out of these, 1 lakh are issued and the rest 1 lakh is still left which they can issue. So we can say that authorized shares or capital is kept for future fundraising now it’s theatre 3 and the number of accumulations now are 4. They did 4 storages out of their initial speculation of Rs. 10 lakhs and initial earnings. Now their hypothesi are prepared for future speculations. Now they say that why not approach private investors because now we want to focus more on the swelling. Now here are 2 natures for elevating monies 1. Debt, which means you can borrow a credit. But if you will borrow debt in the starting, you will have to pay the best interests of 12 -1 3% And EMI starts from era 1. But the 2nd alternative is Equity funds. Equity stores make selling the share. Equity funds are also not free. Understand this because numerous people think that if they are able to elevate equity stores, it will be free of cost. On that stores, you have to give returns to the investor. When you’re borrowing a credit, you’re give returns to the bank But that returns are sterilized whereas equity returns are not fixed. It is directly related to your gains. If the company is doing good gains, then the investor will get better swelling In fact, I made a detailed video on equity and pay. So you can watch that. In our lawsuit, since this business is at the early stage, so we’ll not go with the debt route.We’ll collect funds from private investors and they want to raise Rs. 2 crores from an angel investor. And they got an angel investor who is ready to invest Rs. 2 crores. How will it operate? Rahul and Puja have 50 -5 0 thousand shares and the face value is Rs. 10 which is not going to change. They have 50,000 shares. Now they decide to issue added 20000 shares. You might remember that in approved share capital, “were having” 1 lakh shares additional which we can issue.So they issue 20000 more shares and their importance is Rs. 1000. When you fraction 2 crores by 20,000, it comes out to Rs. 1000. Now the value of all shares is Rs. 1000. Including the 50,000 shares, they both were already having. This is called the market value. Understand this concept properly. Let me explain that what is the difference between market and face value. Initially, promoters vested their money on face value and this face value will be as it is. If anyone will buy shares in the future, he will buy at market value. Now, the market value depends on demand and supply. If more require, then people are ready to pay more for it. And why they’ll be ready to pay more? Because they want to earn more gains, they believe that it will grow better, and they belief on the team.So angel investor is ready to invest Rs. 2 crore market value for these 20,000 shares. Besides this, there is one more concept which is Book value. Book value is according to accounting. I once made a detailed video on bible cost, market value, and face value. So watch that video. Now let’s discuss the market value of shares. When you do 50,0001000 Then the value of shares of Puja and Rahul is Rs. 5 crores respectively. And the value of shares of angel investor are similar because he precisely invested.So 20,0001000= 2 crore. Paid-up capital is 5 lakhs that makes “when youre doing” 50,000 face value, it becomes paid-up capital. It are similar 5 lakhs. And when you are able to do 20,00010, it becomes Rs. 2 lakhs which is paid by this angel investor additionally. So 20,000 shares are allotted to him on the face value of Rs. 10 whose actual market value is Rs. 1000. So how much share% they get? Angel investor got 16.67%. How did this come? 20,000 shares were allotted and the full amounts of the shares are 50,000. And total 1,20, 000. When you subdivide 20,000 by 1,20, 000, it becomes 16.66% And if you will segment the remaining 83.33% into 2 Then 41.665% each will be the share percentage. Total is 100% and now the total number of shares are 1,20, 000. It is issued to them who paid for it. And now the market value of the company is 12 crore. This is called the market value of the company.We too call it market capitalization. The market capital conception is mainly used for the company which is listed in the stock market. So we’ll discuss the market capital of this company where reference is will get registered. And as we understood , now the paid-up capital is Rs. 12 lakhs and approved capital are still Rs. 20 lakhs Which is already decided when the company is formed. You need to change or increase countenanced fund only when the limit is completed and you wish to raise funds besides that. For now, we’re leave behind much limit. We have authorized shares 2 lakhs and paid-up shares are 1,20, 000. 80,000 shares can still be allotted. So let’s see what this companionship can do with these Rs. 2 crores which we announce theatre 3.2 With this Rs. 2 crores, they arrived at 20 accumulates from 4. But their expansion floor didn’t end here.They lack more fund because now they want to focus more on growth and want to reach multiple metropolis. So they now demand Rs. 10 crores and they approach a venture capital firm who also agrees with them. Now, The initial investor took more hazard, that’s why he’ll to be all right returns Promoters had the highest risk because if the 1st accumulations would not have worked, This wouldn’t have started. So greater the risk, the more the returns. We’ll soon see that what returns will these investors will get. This venture capital firm is now ready to invest Rs. 10 crores, so how the present working? For now, the distribution of shares is 50, 50,20 thousand with Rahul, puja, and angel investor whose face value is Rs. 10. Paid-up capital we already checked. Now the company says that for Rs. 10 crores, we will give 20,000 shares. Earlier, angel investor was get 20,000 shares in only Rs. 2 crores. For the same 20,000 shares , now this venture capitalist has to pay Rs. 10 crores which are five times Hence the growth of the company is now five times. Now, what is the per-share value? If you will part 10 crores by 20,000, it came out to Rs. 5000. So now the market value of shares is Rs. 10 crores and similarly Rs. 5000 is here likewise And because there likewise 20,000 shares then the price for angel investor too became 10 crores. And with that, the market value of the shares with Rahul and Puja is 50,0005, 000 which is Rs. 25 crores as the market value. Now focus here, Rs. 2 crores of angel investor are now Rs. 10 crores. He hasn’t sold any shares hitherto but the market value is now Rs. 10 crores. They both invested 5-5 lakhs each first So if we witness their emergence then “its become” 25 crores from 5 lakhs. It is very huge growth.So why this huge growth? Since they are took the highest risk and they were the initial investors and proponents as well. Now you will ask that why people are ready to give so much market value? Why the venture capital firm is ready to give Rs. 5,000. Now it’s not about only investment. Proponents did hard work, their meaning worked out so some coin is for the idea and there is a brand value now Secondly , now they will not stop at 20. There’s a raise floor ahead. Beings are giving money for raise narrative and they too believe in this team When all these combine, then there’s a importance which is Rs. 5000 per share which we can call market value of share or share expenditure. So he gave Rs. 10 crores in a venture capital firm. It was too of face value Rs. 10 and they got an additional paid-up value of Rs. 2 lakhs. Now the number of members of shares is 1,40, 000. So if we subdivide 20,000 by 1,40, 000, it comes out 14.28% Earlier, angel investor had 16.67% which are currently being became 14.28% because 20,000 more shares are diluted. Shareholdings of Rahul and puja are diluted which is now 35.62%. But it doesn’t matter because share% is less but now their net worth is Rs. 25 crores each. Now there are 1,40, 000 shares in total and the total value of the company is Rs. 70 crores. Now the paid-up shares are 1,40, 000 Authorized shares are still 2 lakhs and 60,000 shares are still left which can be issued. So before stepping into the next stage, the company thinks that the share evaluate of Rs. 5000 is very high So let’s now break the shares and increasing the proportion of shares So that when we list this company, then the price of a share will be less and more parties will be able to invest in it. Because if a person has Rs. 2500 then how can he acquire Rs. 5000 share. That’s why they separate the stock. Now understand the concept of a stock split. The initial share is now split into 10 components. For instance, if there was share A and if there are 10 parts then A1, A2, A3, A4 ….. A10 shares and because 1 share is now 1/10 the face value of 1 share is Rs. 1. So face value of any share conversions when it gets split.So now what all changes will be there. Share percentage will be as it is, market value, paid-up capital will be as it is. But the number of shares will increase because now there are 10 shares from 1 So 50,000 shares are now 5 lakhs and 2 lakh shares of angel investors are now 2 lakhs And the same is in the case of venture capital firm. And the value of 1 share is now 1/10 th which is now Rs. 500. So when you are able to do 5 lakhs5 00 then it comes 25 crores Along with that, if the company want to get public rostered, then it needs to convert into a public limited firm. Now it is ABC toys limited and not anymore private limited. I also made a video on public limited. What are its advantages, what are the features so you can watch that. So for now this company have Rs. 10 crores and let’s see what miracle it can do with it.Let’s come to stagecoach 4 and with that 10 crores, they now reach 100 accumulations. From 20 to 100 accumulations. Let’s say they covered one entire municipality but now they don’t want to stay I’m just 1 metropoli and they want to expand in entire India and to multiple municipalities For which they need to raise more money and now they want Rs. 100 crores. This requirement can be fulfilled in 2 rooms. 1. More private investors can be approached. Today, capacity of private investors is huge. We announce venture capital firms or private equity houses as private investors.Or till when the company is private restraint. So these companies can parent gigantic stores. You might have appreciated Paytm, Flipkart, Oyo apartments grew hundreds and crores through private investors. They aren’t public scheduled corporations. But for example, this corporation wants to raise monies from the public. Since we have already discussed angel investors and venture capitalists So now let’s talk about the public. They want to raise Rs. 100 crores from the public so how will it labor? The number of shares after the stock split are 5, 5, 2, 2 lakhs. Face value and paid-up capital are as it is. Now, for elevate Rs. 100 crores from the public, they say that they will give 2 lakh shares for Rs. 100 crores. The world thinks that yes this is a fair value and who is public? People like you and me are also called retail investors. So people are ready to buy 2 lakh shares and the share importance is now Rs. 5000. It was Rs. 500 earlier but since the company is now grown and the number of storages are from 20 to 100. So a fair value is kept here which is Rs. 5000. So if we do 2,00, 0005000, it becomes Rs. 100 crores. And the value of shares with aged investors is also now Rs. 5000 and their evaluate is also now Rs. 100 crores. So initial Rs. 2 crores of an angel investor is now Rs. 100 crores. And 10 crores of venture capital firm are now Rs. 100 crores. Venture capital firm came in the place a bit late so they got their returns distributed according to that Whereas angel investors came a little early so they came better returns. And promoters came even more returns and now the best interests of the their shares is Rs. 250 crores. You can see the enhancement from Rs. 5 lakhs to Rs. 250 crores. Like this, valuation can increase in the stock market if a company is growing fast. And face value is still the same which is Rs. 1 which was after stock split. Additional paid-up capital is now 2 lakhs and now the public got a 12.5% share perce tage. If you segment 2 lakhs by 16 lakhs, it comes to 12.5%. The same is for Venture capitalist, angel, and public. And for Rahul and Puja, it is now reduced to 31.25%. With that, the total number of shares is now 16 lakhs, paid-up capital is also 16 lakhs according to Rs. 1 face value. Paid-up shares are 16 lakhs out of 20 lakhs that can be issued. So further, 4 lakhs shares can still be issued. But there’s no need for now because now the company has Rs. 100 crores. The busines can originate in this but how will they get Rs. 100 crores? They have to offer an IPO. That means, when a company is listed for the first time, it is called Initial Public Offering. After this, if the corporation is misses more fresh uppercase in the future, then they furnish FPO which is Follow-On Public Offer. I’ll make a detailed video on IPO and FPO soon. But before that, let’s understand one more concept. We realized the market value which is Rs. 250 crores each for Rahul and Puja and Rs. 100 crores each for the remaining investors. So the total value of the company when it disappears for inventory in the stock exchange is Rs. 800 crores. And we’ll call it a market capitalization of the company or market value of the company. Now, let’s understand the process of listing a company. If ABC private limited wants to sell worth Rs. 100 crores shares then where will it become? It will go to a stock exchange. Now, what is a stock exchange? Understand it as a market and buyers and sellers can transactions their products in the market. What is the product here? ABC Toys Private Ltd. Brought their IPO and their product is 20, 000 shares and Rs. 5000 is the cost of each share. And the public is ready to buy them and they’re having Rs. 100 crores. Both go to the stock exchange and the exchange of Rs. 100 crores to the company and shares in the form of IPO to the public. In India, the stock exchanges are the Bombay Stock Exchange and National Stock Exchange. Both are very popular stock exchanges. And many parties ask that can the company be included as part of both stock exchange? The react is Yes! it can be done The next question develops that they are able the toll be different in both? The reaction theoretically is Yes! But almost, it cannot be much. So let me give you an example of a vegetable grocery. Let’s say you’re getting potatoes at Rs. 20 per kg in one grocery And Rs. 40 per kg in another vegetable busines. So now, the difference in price is very high. So anyone can buy at Rs. 20 and then sell it at Rs. 40 So he’s getting the benefit of arbitrage which is the difference.So if arbitrage will be more, people will start a business in that and will buy at 20 and sell at 40. Similarly, if a broth is available at Rs. 500 in NSE and at Rs. 1000 is BSE. Then people will buy from NSE and sell at BSE. So this arbitrage is not possible in today’s date because all transactions are online. So this difference is almost finished because of the high and fast transactions. So if a share rate is Rs. 200.1 in NSE, then it may be Rs. 200.101 in BSE. Hence, the difference is very less. So in short, the stock exchange is a market which we call a stock market where trading of shares is done.Besides this, let’s understand 1-2 abstractions more. In our previous video, we viewed an index of BSE, called Sensex 30. So it is the index of the top 30 companionships of India on the basis of market capitalization. And why this Sensex is created? Today, there are around 5000 business listed in the BSE. Finding the valuation of all these companies will be a cumbersome process. But if you want to check the movement of the market, then we take a sample of the top 30 companionships because these companies characterize the maximum capitalization of the whole market. So these companies flesh 70 -7 5% of the whole market because they’re vast. So if we track these 30 companionships, we get an idea of grocery movem nt. Similarly, the Index of NSE is Nifty 50 which is the index of the top 50 companies. There’s one more entity which is the Securities and Exchange Board of India( SEBI ). It is a statute and legal agency and it works as a regulator. Since there were countless impostors in the past. So SEBI characterizes all the laws and how the stock market will work There are fixed guidelines and duties and if anyone doesn’t follow the laws or if any busines, stockbroker or any investor do hoax does fraud, then SEBI makes sanction for it.So now our firm ABC Toys is listed but maybe now the value of shares with the initial customers in the IPO is Rs. 200 crores. So maybe some of them want to sell whom we announce dealers. Because they’re getting doubled the value of their shares, they think that it is a good price to sell and cannot attend any further growth. On another side, countless parties think that this company has more potential and it can go up to Rs. 1000 crores. So they want to buy this share. So now what is the method of buying and selling these shares? They cannot buy and sell immediately in the stock exchange. Earlier when physical trading was there, buying and selling was done in the stock exchange but now since everything is online so now they need to open a D-mat account and trading report. D-mat account is an online chronicle with a stockbroker. It means that your shares are kept in that account in dematerialized flesh. You can understand it as a bank account. As your coin is kept in your bank account, your shares are maintained in your D-mat account. 2nd is our Trading account. A trading note is nowadays linked with the D-mat account and a combined report is there.The actual buy-sell is done from the trading accounting. so you will transfer money from savings to trading account then you can do the buy-sell, you will trasfer money to another history and you will get shares in exchange. and you will get them in your D-mat account. Now many people have this inquiry that where to open D-mat and trading account? There are a lot stockbrokers in the market so I will give the latest recommendations in the description. You can open this account with a dismis intermediary where the trading bills are very less.And if you want to hold shares for the long term, it is free of cost with countless deduction intermediaries So you will get the link to the latest recommendations of the top dismis middlemen in the description So you can open your account from that relate. So we understood the concepts of how the stock market designs. Now let’s discuss some videos of the streak. I will tell you the number of members of videos which you have to watch. Right now you’re watching 2nd video of the Master Investor Series. After this, I numbered 7 more videos. On 3rd, watch Equity and Debt. On 4th, a detailed video on Sensex and Nifty. On the 5th, you will know the difference between Book value, Market value, and Face value. On the 6th, you will understand Authorized, Paid, and Issued capital. On the 7th, I handled marketplace capitalization. On 8th, the difference between Preference and Equity shares which are the 2 each type of shares company issues. Then on the 9th, I covered Categories of Preference shares. So watch these videos. Besides these, I mentioned 2 more videos in this video which are about Private and Public restriction companies.However, these 2 videos are not a part of the surmount investor streak, but you should watch these. You will get the links to all these videos in the specific characteristics. And the link to the Master Investor Series playlist is in accordance with the’ i’ button Or on the screen. So I will assume that you watched these videos in the next video. Now we’ll converge in the 10 th video of the Master Investor series in which we’ll discuss that why the share toll moves up and down and what are the factors in fundamentals and feelings. So if you liked this video then press the like button and share it. Likewise, tell your friends and family members about this Master Investor Series. If have any suggestions related to this video, direct, or this line, Then tell us in the comments section.If you haven’t subscribed to this channel yet then subscribe to it and press the bell icon so that you get the notification of the latest video So we’ll congregate in another informative video. Till then maintain learn, maintain earning, and as ever stay fortunate ..
Free Prescription Drug Cards Coupons
