The Study of Basics of Share Market with Special Reference to Sharekhan.

MAKING investiture property EASIER GIVING CUSTOMER ADVICE MAKING THE grocery store level MORE ASSESSIBLE OUR AIM IS TO IMPOWER THE INVESTOR TO MAKE investiture DECISION THROUGH QUALITY ADVICE AND well-made SERVICE comp atomic heel 53nt componentkhan limited Amravati branch. Tank Complex, to a in naughty spiritser place Union buzzword, Rajkamal Squ atomic sum up 18, Amravati www. cont completekhan. com COMPANY PROFILE dowerykhan is a firm which is working under(a) SSKI (Shantilal, Shevantilal, Kantilal, Ishwarlal) Ltd. SSKI was founded in 1922. SSKI is one of Indias oldest brokerage houses having eight decades of experience into- ? Institutional Broking ?Investment Banking retail Broking It is one of the founding members of the obtain in central, Mumbai and introduce Institutional Broker. SSKI Entered into swop Broking in 1985. Sh atomic itemise 18 khan is the Retail Broking Arm of the long 82 Years old presidency i. e. of SSKI and Sh atomic number 18khan is the shop Name inclined to its Retail headache. SSKI carries come forward its Retail Broking pieceivi attachs under Sh atomic number 18khan Brand Name. Sh bekhan is One of Indias Leading Broking Houses. They Provides you a Complete Life-Cycle of Investment Solutions in Equities, differentials, Commodities & repository processs.Shargonkhan Outlets act as Full Service Investment Solutions Provider, providing you wide range of dish comparable ? Equity & differential gears c wholeing on NSE and bovine spongiform encephalitis ?Online art ?Commodities Trading on MCX & NCDEX ?Portfolio Management service ?Depository trifle ?IPO Services ?Wide track down of Customized Research Products ?Uniform Service Standards Sh atomic number 18khan Services- dish out khan is one of the Indias ahead(p) brokerage houses & the retail arm of SSKI, with 340 branches in altogether over India. Offerings of the theatrical rolekhan- servingkhan widens both(prenominal) offline and online affair tarradiddle. exactly at one time a geezerhood it virtuallyly concent crops on online avocation distinguish by which a consumptioner quite a little bribe and sh be sh bes in an nictitation from each go away of the globe through website. It does non get by into billhook both type of corporeal restriction of leaving to the broker for carrying out a accomplishment or any type of elimination of payment. It assuages the customer a speedy and worry free execution. Sh be khans merchandise consists of a 4-in-1 concept, which integrates- ?D-mat Account ?Trading Account ?Bank Link ?Dial-N-Trade For doing a merchandise of sh atomic number 18s anyone consume D-mat A/C. In his D-mat A/C one give the axe kept his shares. so Sharekhan provides a Trading A/C through this employment entrusters bill, a Sharekhan customer sack straight budge his money from his savings accountancy i. e. from bank account to Sharekhan to his transaction account without any saucilyspaper work. He hobo grease ones palms and carry on shares from the website and in like manner deal the foodstuff efficacious injurys of the shares he trades on the terminal. Sharekhan. com allows trade at chip in only on NSE. bovine spongiform encephalitis affair provide be soonly operable. To pioneer an account a customer requires pick up a form consisting of 12 pledges, a recommendation size photograph, a residential demonstration, a photo ID proof and a draw emaciated of various(prenominal) nub in margin see for of S.S. Kantilal Ishwarlal securities Pvt. Ltd. & from 22 March, 2007 cheque is drawn in favour of Sharekhan LTD itself. After go-ahead an account with Sharekhan, a customer pass on be given User ID, social status password and art password, which result vary him to access his account and trade. Bank union- Sharekhan has affiliation with 11 banks, which allows its customers to enjoy the zeal of instant im portione and transf er of funds from his savings bank account to his Sharekhan trading account. The affiliated banks are as follows- ? HDFC deposit ?AXIS chamfer ?CITI bank ?ICICI depository pecuniary institution OBC fix ? magnetic north BANK ?INDUSIND BANK ?IDBI BANK ?BOI ?YES BANK ?DEUTSCHE BANK Dial-n-Trade- It is to a fault an exclusive service available to all Sharekhan customers for trading in shares via the telephone. On dialing the hurt free digit 1800-22-7500 the customer get out be commit to a tele-broker who lead spoil or give away shares for him. Share grocery Share food commercialize place place is an ambit which fascinates each and every individual who is crave for more specie. In undecomposable Words, a share or rootage is a document issued by a company, which entitles its pallbearer to be one of the owners of the company.A share is issued by a company or quite a little be grease ones palmsd from the argumentation up merchandise. Securities & flip venir e of India SEBI- Establishment of SEBI The Securities and give-and- cook be on of India was schematic on April 12, 1992 in accordance with the render of the Securities and central Board of India Act, 1992. The elementary functions of SEBI is to cherish the interests of investors in securities, to bewilder the securities foodstuff & to advertise its development. Functions of SEBI To register & puzzle the working of crownwork mart intermediaries. To work the working of usual funds. To promote self-regulatory organizations. To interdict fraudulent & raw trade practices in securities food merchandise. To promote investors education of intermediaries. To negative insider trading in securities. To regulate skill of shares & takeovers of companies. Primary & utility(prenominal) merchandise- a)Primary commercialise In pristine coil markets securities are bought by way of popular issue dear off from the company. In simple words A market is unproblematic if the pro ceeds of gross revenue go to the issuer of the securities veer. This is part of the monetary market where enterp tog ups issue their new shares and mystifys.It is characterized by universe the only trice when the enterp initiate receives money in diversify for rally its pecuniary as sterilises. b)Secondary Market The market where securities are traded later they are initially offered in the primary market. Most trading is done in the secary market. To relieve further, it is trading in previously issued monetary musical instruments. Examples are the send on-looking York pipeline interchange (NYSE), Bombay hackneyed win over ( mad cow disease), content Stock Exchange NSE, bond markets, over-the-counter markets, residential mortgage loans, governmental guaranteed loans etc. honor- NSE ( topic Stock Exchange)-The issue Stock Exchange of India Limited or S CNX swell (NSE) is a Mumbai-based be drive step in. It is the largest farm animal substitute in India i n of daily employee turnover and amount of trades, for both equities and differential trading. Mutually-owned by a act of star(p) financial institutions, banks, insurance companies and separate financial intermediaries in India. NSE is the third largest Stock Exchange in the humankind in ground of the number of trades in equities and rump up fastest evolution rip exchange in the demesne with a save growth of 16. 6%. NSE of India was promoted by leading financial institutions at the lift out of the regimen of India. The National Stock Exchange of India was promoted by leading financial institutions at the best of the governing body of India, and was interconnected in November 1992 as a tax-paying company. In April 1993, it was recognized as a rootage exchange under the Securities Contracts (Regulation) Act, 1956. Currently, NSE has the following study segment of neat markets- ?EQUITY ?FUTURES & OPTIONS ? swap DEBT marketplace ?sweeping DEBT MARKET ? coin DEB T MARKET mad cow disease (Bombay Stock Exchange)- mad cow disease has the greatest number of listed companies in the world. The SENSEX excessively called the BSE 30, as it has the top near performing 30 companies listed.BSE is the oldest lineage exchange in Asia and has the greatest number of listed companies in the world. It is situated at Dalal Street, Mumbai, India. BSE was established as The Native Share & Stock Brokers friendship in 1875. BSE is the first exchange in India and the second in the world to obtain an ISO 90012000 certifications. BSE is the first take exchange in the arena which obtained persistent recognition (in 1956) from the political science of India under the Securities Contracts (Regulation) Act 1956. BSE has deuce of worlds best exchanges, Deutsche Bores and capital of Singapore Exchange, as its strategical partners.Today, BSE is the worlds number 1 exchange in terms of the number of listed companies and the worlds fifth in transaction numbers. An investor advise use up from more than 4,700 listed companies, which for light reference, are classified ad into A, B, S, T and Z groups. cocksucker Market- in that respect are cardinal holy market types apply to characterize the ordinary direction of the market. Bull markets are when the market is by and large acclivitous, typically the result of a strong economy. A doodly-squat market is typified by broadly speaking uprise channel charges, high sparing growth, and strong investor self-confidence in the economy. but arrange, bull markets are movements in the strain market in which expenses are rising and the consensus is that termss pass on conduct moving upward. During this fourth dimension, sparing production is high, jobs are plentiful and ostentation is low. A give away to successful drop during a bull market is to take advantage of the rising charges. Bear Market - The opposite of a bull market is a boot out market when monetary nourishs are fal ling in a financial market for a prolonged flowing of time. A sham market tends to be accompanied by wide pass on pessimism. A bear market is slang for when shoot prices consecrate decrease for an extended result of time.If an investor is bearish they are referred to as a bear because they study a event company, industry, sector, or market in prevalent is going to go down. Bear markets are the oppositestock prices are falling, and the debate is that they will stretch out falling. The economy will slow down, united with a rise in unemployment and inflation. demoralise- We put up steal the shares on market price. We toilette similarly manage and grease ones palms the shares on disdain price than the market price. Sell- We can give the shares on market price. We can similarly negotiate and sell the shares on higher rate than the market price. short-change sell- presently selling starts with espousal a stock from your broker You sell the borrowed stock hoping to purchase it back at a debase price and surpass (short cover) it to your broker for a profit alone rules for debauching unbosom apply piteous cover- mustiness aim already short sold the stock whitethorn set a maximum price limit whole other(a) rules for selling apply Derivative Market Derivative is a product whose tax is derived from the tax of one or more basic variables, called bases ( fundamental summations, index) in a take in chargeual manner.The be additions can be Equity, Forex, goodness, Bullion or any other improvers. The emergence of the market for derivative products, most notably antecedents, Futures and excerption, can be traced back to the willingness of jeopardy unbecoming economic agents to refuge themselves against un realties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. with the use of derivatives products, it is attainable to partially or fully tra nsfer price risks by locking in asset price.For vitrine, wheat berry farmers may proclivity to sell their harvest-tide at a forthcoming encounter to eliminate the risk of a change in prices by that escort. such a transaction is an example of derivative. The price of this derivative is driven by the spot price of wheat, which is the rudimentary. Types of Derivatives- The most commonly utilise derivatives hires are forwards, approachings and extracts. 1) previouss A forward let is a customized take on amongst 2 entities, where settlement takes place on a undertake date in the future at straight offs pre-agreed price.A Forward bargain is an agreement to demoralise or sell an asset on a stipulate date for a stipulate price. The salient(ip) features of forward blesss are a)They are two-sided gets and hence open(a) to counter troupe risk. b)Each contract is custom designed, and hence is crotchety in terms of contract size, deviation date and the asset type an d quality. c)The contract price is generally not available in existence domain. d)On the purpose date, the contract has been settled by delivery of the assets. e)If the ships company wish wellers to reverse the contract, he has to compulsory go to the same counterparty, which oft results in high prices being charged. )Futures A future contract is an agreement between two parties to buy or sell an asset at a authorized time in the future at a certain price. Future contracts are special types forward contracts in the ace that the former are regularise exchange traded contracts. The futures markets were designed to straighten out the problems that exist in forward markets. A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. however unlike forward contracts, the futures contracts are archetypeised and exchange traded.To palliate liquidity in the futures contracts the exchange stipulate certain metre features of the contract. It is a standardized contract with standard implicit in(p) instrument, a standard sum of money and quality of the vestigial instrument that can be delivered and a standard quantify of such settlement. 3) creams- Option is a legal contract in which the source of the woof grants to the emptor, the mature to grease ones palms from or sell to the make unnecessaryr a designated instrument or a scrip at a contract price indoors a specify occlusive of time.There are basically two types of choices a) roar Option- An pick contract that gives its holder the right (but not the obligation) to purchase a qualify number of shares of the underlie stock at the given latch on price, on or in advance the finale date of the contract, irrespective of the prevailing market price of the rudimentary asset. One buys a call resource if one believes the price for the profound asset will rise by the end of the contract. If the price does rise, the holder may buy and resell the be asset for a profit.If the price does not rise, the pickaxe expires and the holders expiry is limited to the price of buying the contract. Call picks may be used on their own or in coalition with put alternatives to effect an option spread in order to hedge risk. get a call option gives you, as owner, the right to buy a stiff quantity of the implicit in(p) product at a specified price, called the instill price, indoors a specified time period. For example, you readiness purchase a call option on degree centigrade shares of a stock if you expect the stock price to make up but favor not to tie up your coronation principal by investing in the stock.If the price of the stock does go up, the call option will increase in value. You might choose to sell your option at a profit or exercise the option and buy the shares at the divulge price. But if the stock price at expiration is less than the spank price, the option will be worthless. The amount you lose, in that case, is the bounteousness you paid to buy the option plus any brokerage pays. In contrast, you can sell a call option, which is cognize as constitution a call. That gives the purchaser the right to buy the underlying investment from you at the conduct price before the option expires.If you write a call, you are obliged to sell if the option is exercised and you are assigned to chance upon the call. b)Put Option- A put option is a financial contract between two parties, the writer ( trafficker) and the purchaser of the option. The vendee acquires a short smudge by purchasing the right to sell the underlying instrument to the seller of the option for a specified price (the strike price) during a specified period of time. If the option emptor exercises their right, the seller is oblige to buy the underlying instrument from them at the agreed upon strike price, regardless of the trustworthy market price.In exchange for having this option, the buyer pays the seller or option writer a fee (the option premium). By providing a guaranteed buyer and price for an underlying instrument (for a specified coupling of time), put options offer insurance against unreasonable loss. Similarly, the seller of put options profits by selling options that are not exercised. Such is the case when the on-going market value of the underlying instrument makes the option extra i. e. the market value of the instrument mud above the strike price during the option contract period.Purchasers of put options may in like manner profit from the might to sell the underlying instrument at an inflated price (relative to the occurrent market value) and purchase their position at the much reduced current market price. COMMODITY MARKET- goodness trading is an interesting option for those who wish to diversify from the traditional options like shares, bonds and portfolios. The Government has made almost all commodities authorize for futures trading. Three multi trade good exchanges baffle been set up in the land to facilitate this for the retail investors.The three interior(a) exchanges in India are ? Multi Commodity Exchange (MCX) ?National Commodity and Derivatives Exchange (NCDEX) ?National Multi-Commodity Exchange (NMCE) Commodity trading in India is let off at its early years and consequently requires an aggressive growth plan with ripe ideas. Liberal policies in commodity trading will definitely ascent the commodity trading. The commodities and future market in the country is regulated by Forward Markets commissioning (FMC). Offerings of the Sharekhan- Sharekhan offers both offline and online trading account.But now a days it mostly concentrates on online trading account through which a customer can buy and sell shares in an instant from any part of the globe through website. It does not take into account any type of physical restriction of going to the broker for carrying out a transaction or any type of settlement of pa yment. It facilitates the customer a speedy and hassle free transaction. Share khans product consists of a 4-in-1 concept, which integrates- ?D-mat Account ?Trading Account ?Bank Link ?Dial-N-Trade For doing a trading of shares everyone need D-mat A/C. In his D-mat A/C one can kept his shares.Then Sharekhan provides a Trading A/C through this trading account, a Sharekhan customer can directly transfer his funds from his savings account i. e. from bank account to Sharekhan to his trading account without any paper work. He can buy and sell shares from the website and also view the market prices of the shares he trades on the terminal. Sharekhan. com allows trading at present only on NSE. BSE trading will be shortly available. To open an account a customer requires filling up a form consisting of 12 agreements, a passport size photograph, a residential proof, a photo ID proof and a cheque drawn of respective amount in favour of S.S. Kantilal Ishwarlal securities Pvt. Ltd. & from 22 Mar ch, 2007 cheque is drawn in favour of Sharekhan LTD itself. After opening an account with Sharekhan, a customer will be given User ID, Membership password and trading password, which will enable him to access his account and trade. Bank Connection- Sharekhan has affiliation with 11 banks, which allows its customers to enjoy the facility of instant credit and transfer of funds from his savings bank account to his Sharekhan trading account. The affiliated banks are as follows- ? HDFC BANK ?AXIS BANK ?CITI BANK ?ICICI BANK OBC BANK ?UNION BANK ?INDUSIND BANK ?IDBI BANK ?BOI ?YES BANK ?DEUTSCHE BANK Dial-n-Trade- It is also an exclusive service available to all Sharekhan customers for trading in shares via the telephone. On dialing the toll free number 1800-22-7500 the customer will be directed to a tele-broker who will buy or sell shares for him. Share Market Share market is an area which fascinates each and every individual who is craving for more money. In simple Words, a share or s tock is a document issued by a company, which entitles its holder to be one of the owners of the company.A share is issued by a company or can be purchased from the stock market. Securities & Exchange Board of India SEBI- Establishment of SEBI The Securities and Exchange Board of India was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. The basic functions of SEBI is to protect the interests of investors in securities, to regulate the securities market & to promote its development. Functions of SEBI To register & regulate the working of capital market intermediaries. To regulate the working of mutual funds. To promote self-regulatory organizations. To prohibit fraudulent & unfair trade practices in securities market. To promote investors education of intermediaries. To prohibit insider trading in securities. To regulate acquisition of shares & takeovers of companies. Primary & Secondary Market- a)Primary Mark et In primary markets securities are bought by way of public issue directly from the company. In simple words A market is primary if the proceeds of sales go to the issuer of the securities sold. This is part of the financial market where enterprises issue their new shares and bonds.It is characterized by being the only moment when the enterprise receives money in exchange for selling its financial assets. b)Secondary Market The market where securities are traded after they are initially offered in the primary market. Most trading is done in the secondary market. To explain further, it is trading in previously issued financial instruments. Examples are the New York Stock Exchange (NYSE), Bombay Stock Exchange (BSE), National Stock Exchange NSE, bond markets, over-the-counter markets, residential mortgage loans, governmental guaranteed loans etc. EQUITY- NSE (National Stock Exchange)-The National Stock Exchange of India Limited or S CNX NIFTY (NSE) is a Mumbai-based stock exchange. It is the largest stock exchange in India in of daily turnover and number of trades, for both equities and derivative trading. Mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India. NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities and second fastest growing stock exchange in the world with a recorded growth of 16. 6%. NSE of India was promoted by leading financial institutions at the best of the Government of India. The National Stock Exchange of India was promoted by leading financial institutions at the best of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. Currently, NSE has the following major segment of capital markets- ?EQUITY ?FUTURES & OPTIONS ?RETAIL DEBT MARKET ?WHOLESALE DEBT MARKET ?CURRENCY DEBT MARKE T BSE (Bombay Stock Exchange)- BSE has the greatest number of listed companies in the world. The SENSEX also called the BSE 30, as it has the topmost performing 30 companies listed.BSE is the oldest stock exchange in Asia and has the greatest number of listed companies in the world. It is located at Dalal Street, Mumbai, India. BSE was established as The Native Share & Stock Brokers Association in 1875. BSE is the first exchange in India and the second in the world to obtain an ISO 90012000 certifications. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE has two of worlds best exchanges, Deutsche Bores and Singapore Exchange, as its strategic partners.Today, BSE is the worlds number 1 exchange in terms of the number of listed companies and the worlds 5th in transaction numbers. An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups. Bull Market- There are two classic market types used to characterize the general direction of the market. Bull markets are when the market is generally rising, typically the result of a strong economy. A bull market is typified by generally rising stock prices, high economic growth, and strong investor confidence in the economy.Simply put, bull markets are movements in the stock market in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high, jobs are plentiful and inflation is low. A key to successful investing during a bull market is to take advantage of the rising prices. Bear Market - The opposite of a bull market is a bear market when prices are falling in a financial market for a prolonged period of time. A bear market tends to be accompanied by widespread pessimism. A bear market is slang for when stock prices have decreased for an extended pe riod of time.If an investor is bearish they are referred to as a bear because they believe a particular company, industry, sector, or market in general is going to go down. Bear markets are the oppositestock prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation. Buy- We can buy the shares on market price. We can also negotiate and buy the shares on lower price than the market price. Sell- We can sell the shares on market price. We can also negotiate and sell the shares on higher rate than the market price.Short sell- Short selling starts with borrowing a stock from your broker You sell the borrowed stock hoping to buy it back at a lower price and return (short cover) it to your broker for a profit All rules for buying still apply Short cover- Must have already short sold the stock May set a maximum price limit All other rules for selling apply Derivative Market Derivative is a product whose value is derived from the value of one or more basic variables, called bases (underlying assets, index) in a contractual manner.The underlying assets can be Equity, Forex, commodity, Bullion or any other assets. The emergence of the market for derivative products, most notably forwards, Futures and Option, can be traced back to the willingness of risk adverse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivatives products, it is possible to partially or fully transfer price risks by locking in asset price.For example, wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a transaction is an example of derivative. The price of this derivative is driven by the spot price of wheat, which is the underlying. Types of Derivatives- The most commonly u sed derivatives contracts are forwards, futures and options. 1)Forwards A forward contract is a customized contract between two entities, where settlement takes place on a specified date in the future at todays pre-agreed price.A Forward contract is an agreement to buy or sell an asset on a specified date for a specified price. The salient features of forward contracts are a)They are bilateral contracts and hence exposed to counter party risk. b)Each contract is custom designed, and hence is unique in terms of contract size, expiration date and the asset type and quality. c)The contract price is generally not available in public domain. d)On the expiration date, the contract has been settled by delivery of the assets. e)If the party wishers to reverse the contract, he has to compulsory go to the same counterparty, which often results in high prices being charged. )Futures A future contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Future contracts are special types forward contracts in the sense that the former are standardized exchange traded contracts. The futures markets were designed to solve the problems that exist in forward markets. A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. But unlike forward contracts, the futures contracts are standardized and exchange traded.To facilitate liquidity in the futures contracts the exchange specified certain standard features of the contract. It is a standardized contract with standard underlying instrument, a standard quantity and quality of the underlying instrument that can be delivered and a standard timing of such settlement. 3)Options- Option is a legal contract in which the writer of the option grants to the buyer, the right to purchase from or sell to the writer a designated instrument or a scrip at a specified price within a specified period of time. The re are basically two types of options a)Call Option-An option contract that gives its holder the right (but not the obligation) to purchase a specified number of shares of the underlying stock at the given strike price, on or before the expiration date of the contract, regardless of the prevailing market price of the underlying asset. One buys a call option if one believes the price for the underlying asset will rise by the end of the contract. If the price does rise, the holder may buy and resell the underlying asset for a profit. If the price does not rise, the option expires and the holders loss is limited to the price of buying the contract.Call options may be used on their own or in conjunction with put options to create an option spread in order to hedge risk. Buying a call option gives you, as owner, the right to buy a fixed quantity of the underlying product at a specified price, called the strike price, within a specified time period. For example, you might purchase a call option on 100 shares of a stock if you expect the stock price to increase but prefer not to tie up your investment principal by investing in the stock. If the price of the stock does go up, the call option will increase in value.You might choose to sell your option at a profit or exercise the option and buy the shares at the strike price. But if the stock price at expiration is less than the strike price, the option will be worthless. The amount you lose, in that case, is the premium you paid to buy the option plus any brokerage fees. In contrast, you can sell a call option, which is known as writing a call. That gives the buyer the right to buy the underlying investment from you at the strike price before the option expires. If you write a call, you are obliged to sell if the option is exercised and you are assigned to meet the call. )Put Option- A put option is a financial contract between two parties, the writer (seller) and the buyer of the option. The buyer acquires a short pos ition by purchasing the right to sell the underlying instrument to the seller of the option for a specified price (the strike price) during a specified period of time. If the option buyer exercises their right, the seller is obligated to buy the underlying instrument from them at the agreed upon strike price, regardless of the current market price. In exchange for having this option, the buyer pays the seller or option writer a fee (the option premium).By providing a guaranteed buyer and price for an underlying instrument (for a specified span of time), put options offer insurance against excessive loss. Similarly, the seller of put options profits by selling options that are not exercised. Such is the case when the ongoing market value of the underlying instrument makes the option unnecessary i. e. the market value of the instrument remains above the strike price during the option contract period. Purchasers of put options may also profit from the ability to sell the underlying ins trument at an inflated price (relative to the current arket value) and repurchase their position at the much reduced current market price. COMMODITY MARKET- Commodity trading is an interesting option for those who wish to diversify from the traditional options like shares, bonds and portfolios. The Government has made almost all commodities entitled for futures trading. Three multi commodity exchanges have been set up in the country to facilitate this for the retail investors. The three national exchanges in India are ? Multi Commodity Exchange (MCX) ?National Commodity and Derivatives Exchange (NCDEX) ?National Multi-Commodity Exchange (NMCE)Commodity trading in India is still at its early days and thus requires an aggressive growth plan with innovative ideas. Liberal policies in commodity trading will definitely boost the commodity trading. The commodities and future market in the country is regulated by Forward Markets commission (FMC). Knowledge Gained at Sharekhan- We have kno wing various aspects regarding to products of the Sharekhan ltd. We have also gained a lot of knowledge somewhat the schemes & policies of the company & also about its competitors. We have learned about the various indices & their logical implication in market. We have also learned the impact of Sensex & Nifty on boilers suit stock market. We have learned about various fundamentals & technical aspects which feign the stock prices in short run & long run. At Sharekhan we have also been taught to use the online terminal. We also learned how to rise communications & convincing skills & how to approach the customers. We have learned a lot relating to finance. Bibliography- Websites www. nseindia. com www. bseindia. com www. moneycontrol. com www. sharekhan. com Books & Magazines Business Today Business Standard