This book provides a comprehensive understanding of the investment environment, decision-making processes, and trading mechanisms, focusing on equity shares with practical examples. It is designed for undergraduate students. It features updated data, insights on the Indian securities market, modern technical and fundamental analysis tools, and real-life application opportunities.

Description

This book is designed to provide readers with:

• A comprehensive understanding of the investment environment.
• Insight into the investment decision process.
• Knowledge of the trading mechanism in stock markets.

It explains various concepts, tools, and techniques related to investment in financial assets with lively examples and suitable illustrations, focusing primarily on equity shares.

This book covers the entire syllabus prescribed for students pursuing:

• Undergraduate Students of the University of Delhi (Regular)
• Non-Collegiate Women’s Education Board
• School of Open Learning of the University of Delhi
• Various Central Universities throughout India

The Present Publication is the 8^th Edition, authored by Prof. (Dr) Vanita Tripathi & Neeti Panwar, with the following noteworthy features:

• [Features of the 8^th Edition] are as follows:
  • Updated Information – Latest data tables, facts, and information regarding stock markets
  • Technical Analysis – Introduction to the roles and importance of primary and secondary market segments
  • Indian Securities Market – Coverage of clearing corporations in India
  • New Stock Exchange – Introduction to the newest national stock exchange, MSEI (Metropolitan Stock Exchange of India)
  • Derivatives Market – Addition of the EIC (Economy, Industry, Company) framework for fundamental analysis of stocks, with detailed illustrations and diagrams of call and put option payoffs
  • Trading in Securities – Inclusion of filter rules, Credit Balance Theory, MACD (Moving Average Convergence Divergence), advance-decline ratio, and advanced interactive charts for technical analysis
• [Simple | Systematic | Comprehensive Explanation] Clear and detailed explanation of investment concepts, procedures, and techniques
• [Learning Outcomes] Each chapter begins with a list of learning outcomes that set the framework for the chapter
• [Illustrations and Examples] Concepts and techniques are explained with lucid examples and illustrations
• [Solved Problems] Each chapter includes solved problems for better understanding and application
• [Summary Points] Recap key concepts at the end of each chapter
• [Test Yourself] Assignments in each chapter to test knowledge, including True/False statements, theory questions, and numerical problems
• [Project Work] Opportunities to apply investment concepts in real life
• [Previous Year’s Question Papers] Includes previous year’s question papers for student reference

The contents of this book are as follows:

• Basics of Investment
  • Modes of Investment – Understand direct and indirect investing
  • Approaches to Investing – Understand active and passive investment strategies
  • Investment Decision Process – Learn the steps involved in making sound investment choices
  • Responsible Investing – Understand the principles of ethical and sustainable investment practices
• Risk & Return
  • Risk-Return Trade-off – Analyze the relationship between risk and potential returns
  • Measurement of Return – Techniques to calculate and interpret investment returns
  • Types of Risk – Differentiate between systematic and unsystematic risks
  • Impact of Inflation and Taxes – Assess how these factors influence investment outcomes
• Fundamental Analysis
  • Approaches to Security Analysis – Introduction to Fundamental Analysis Techniques
  • EIC Framework – Examine the economy, industry, and company analysis
  • Stock Valuation Models – Learn various models for valuing equity shares
• Technical Analysis
  • Basic Tenets – Understand the propositions of technical analysis
  • Trading Rules and Indicators – Familiarize yourself with key technical indicators and chart patterns
  • Limitations and Pitfalls – Recognize the limitations and common mistakes in technical analysis
• Indian Securities Market
  • Structure and Participants – Overview of the primary and secondary markets
  • Regulation and Developments – Insight into SEBI’s role and recent advancements in the Indian stock market
• Stock Exchanges
  • Role and Function – Understand the significance of stock exchanges and trading mechanisms
  • Securities Indices – Learn about different stock indices and their importance
• Derivatives Market
  • Introduction and Classification – Basics of derivatives, including forwards, futures, and options
  • Market Participants – Understand the roles of various traders in the derivatives market
• Trading in Securities
  • Online Trading – A guide to online trading mechanisms, order types, and execution processes
  • Trading Strategies – Learn how to place, modify, and cancel orders effectively
• Introduction to Mutual Funds
  • Evolution and Types – History and classification of mutual funds in India.
  • Advantages and Limitations – Pros and cons of investing in mutual funds
  • Latest Developments – Stay updated with the recent trends in the mutual funds industry
• Investing in Mutual Funds
  • NAV and Loads – Understand Net Asset Value and various types of loads
  • Choosing Mutual Funds – Factors to consider when selecting mutual funds
  • Industry Overview – Comprehensive list of mutual funds in India and their websites

Vanita Tripathi

Dr Vanita Tripathi was a Professor at the Department of Commerce, Delhi School of Economics, University of Delhi, and served as Deputy Dean at the University of Delhi. She was a distinguished academic, earning double Gold Medals in B.Com. (Hons.) and M.Com. from Shri Ram College of Commerce and Delhi School of Economics. Additionally, she was the top scorer in her M.Phil. program.

With over 17 years of teaching and research experience in investment management, Dr. Tripathi also coordinated the M.Phil. Finance area. Her accolades include the Best Business Academic of the Year (BBAY) award and a gold medal in 2012, the Prof. Manubhai M. Shah Memorial Research Award, a gold medal in 2014, and ten best research paper awards at various international conferences. She was a MOOC Coordinator and Paper Coordinator for Financial Management of M.Com. under the e-PG Pathshala project of UGC, part of the NMEICT initiative by the Ministry of HRD, Govt. of India, developing e-content for postgraduate courses in India.

Dr. Tripathi’s research was published in esteemed journals, including the Annals of Financial Economics, where Nobel Laureate Prof. Harry Markowitz also published his work. She was involved in teaching and research, authoring four books and publishing 78 research papers in reputable international and national journals. Her research interests encompassed market efficiency, socially responsible investing, corporate finance, and asset pricing.

Neeti Panwar

Ms Neeti Panwar is an assistant professor at the Department of Higher Education, Government of Haryana. An alumnus of the prestigious Shri Ram College of Commerce and Delhi School of Economics, she has completed her B.Com. (Hons.), M.Com., and M.Phil. (Finance) from the University of Delhi, consistently achieving top ranks throughout her academic career. She was the All India topper in Economics in AISSCE and received a scholarship from the Ministry of HRD, Government of India, for her excellent academic performance. Ms. Panwar was awarded the Junior Research Fellowship twice by the UGC, each time achieving the highest scores in India.

With six years of teaching experience at the University of Delhi and GGSIPU, Ms. Panwar has actively participated in seminars, conferences, and Faculty Development Programmes. She has published research papers in both national and international journals. Her research interests include corporate finance, security analysis and portfolio management, market efficiency, and algorithmic trading.