Basics of Stock Market For Beginners Lecture 1 By CA Rachana Phadke Ranade

[00:00:00] Speaker 1: so i welcome you all formally to this amazing batch of basics of stock market let me give a quick introduction about myself first and then we'll move on with the topic okay hmm okay so i cleared ca in 2008 november so i'm sure you know that the result comes out in january 2009 so this year marks 10 years of me becoming a chartered accountant so i thought why not take one step ahead and peek into some area which i've never taken as a proper formal session so that was the reason why i thought of taking this small course on basics of stock market did i take a sudden jump into this the answer is no i'm also a resource person of a government organization when i've taken more than 100 sessions on investment awareness and two sessions are very close to my heart because one was for cid pune cid matlab daya wala ne ya proper cid of pune and second one was for indian army southern command after having a word with so many participants through more than 100 sessions of course i've taken a lot of corporate trainings as well in the same area but then ittne logon se baat ki and i found one thing which was almost very much in common that everyone knows ki stock market hai but if i ask them two or three questions they might give me an answer but it would be a very vague answer as such they would not give me pinpointed answers and so many people said that ma'am youtube pe content hai no doubt about that but uh we are not uh you know youtube pe alag alag content hai basically there is no formalized content like this ki ek-dung start se jaysayab paan school mein padte hai a b c d se vayse agar koi padai toh maza jayega so i said main ho na so then i thought that let us design this small course should not be a big one ten days course hai and every day one and a half hours okay so i thought we should start from the scratch in fact i got queries from so many chartered accountants also they said madam apne morning who have been my students sometime and overlooking morning may we have to go for college maybe they work in hindi area and they say we leave at seven in the morning how can we attend your batch at 7 30 in the morning said no problem we'll record it for you that is why this recording stuff also okay but then i said you are a chartered accountant why do you really want to attend this basics of stock market batch believe it or not i met so many cas who are some of them are more experienced than me but they have not invested even one rupee in stock market directly on their own mutual funds se kia ho ga but not on their own so i feel this is a very good platform if you don't know anything about the stock market to start from the scratch and learn in a very systematic and standardized manner right okay any one of you already invests in market one two three four very good and i'm happy with that have you taken some shares because because you're senior advised or your broker advised yes always that is how even i started generally apne ko apna jo broker hota he'll tell you he'll tell you share buy karo and many times it happens that after giving some call it will actually go up and within no time it will actually crash like anything so then why depend on someone else to take a buy or sell decision can't we study on our own yes absolutely yes so that is why we're going to start from the basics and even if you know something about the stock market i bet that after completing this batch you will say that we did not know all these at least five six areas out of this and we're happy we are here and got to know about the basics right from scratch okay yes i feel koi bhi building banane se pehle what is the first step in before actually construction ek dem pahla step kya hota construction ka um to see the area to see the area okay area dekh liya chahiye decide bhi ho ga yaha pe building banane ka hai what next huh foundation base layout karna hota hai but base layout karne se pehle you will find that the land is not even hmm land might be uneven there'll there'll be some unwanted plants around you so pehle wo sab unwanted cheeze hatta nye and then build a solid foundation so abhi unwanted cheeze hat jho basic upne dhimaag mein hai stock markets ke baare mein wo sab se pehle hatta nye apne ko okay just say aapne suna ho ga definitely stock market satta hai many people say that it's a gambling game so is it really a gambling game can we study it technically and take some good decisions so answer is definitely yes no doubt on that so yeh gambling game bilkul bhi nahi hai apne ekdom systematic manner mein alag alag jo apne dhimaag mein myths hai about the stock market you understand that a myth myth means what wrong assumptions yeh sabhi sab se pehle apne dhimaag se hatta nye hai uneven land hai usko land ko even banane ka hai unwanted plants ko side me hataneka hai that's how we are going to start okay so let's go through one by one we are going to start off with busting the myths of stock market you understand bust bust matlab blow up hata ho usko myths of stock market myths means what are your wrong assumptions about the stock market so i've taken three major three to four if i'm not mistaken major misconceptions about the stock market the very first myth misconception is that investments in stock market are very risky how many of you agree with this stock market investments are very risky no one but if you ask general people everyone will say we don't invest in stock market because we feel it is very risky okay so why do they feel it is risky so if you ask me personally i feel yes to some extent it is risky but really is it risky or not for that just have a look at this chart okay i'm sure you might not be able to see all these small is it visible no it's not even visible very nicely for me don't worry but what happens understand this is the performance of sensex in the past have you heard about this term sensex so now there is one more similar term to sensex nifty correct so what is sensex what is nifty but first of all let us just have a quick look at this movement of stock market this is way back in 1991 that is 1991 and this is 2018 okay now if you see here see all these small hiccups could that happen in the short term could you i mean could there be a possibility that you buy a share and immediately after that it goes down possible yes or no yes absolutely yes this is very much possible but now have a look in the long run is it growing has it steadily risen from what is this on the y-axis here you can see 5000 what is this 5000 sensex was it 5000 was it 5000 also was below 5000 in 1991 and today any idea roughly if you see this is jen 2018 it's almost 35 we are in 2019 right now so now tell me in the long run can you bet on the stock market yes why not but if you're talking about short term then be aware in the short term you can see lots and lots of ups and downs see this amazing area can you see that market was roughly roughly so maybe somewhere around 17 000 okay roughly around 2008 beginning kuch tu hua ta either and yeh gaya tha na seedha 10 000 ke bhi niche you know what had happened in 2008 u.s crisis subprime crisis have you heard about this there was a big big big crisis in us if you want i'll cover that in short in the upcoming session also have you heard about lehman brothers yes that was a very big financial institution like we have icici like we have hdfc all these are the big financial institutions in india similarly there was a huge financial institution in india named lehman brothers it declared bankruptcy overnight a ratto rat bankrupt so you can imagine something like this hdfc pulls down the shutter today evening and tomorrow morning it doesn't open and you can imagine so many people's funds are locked in that ratto rat bankruptcy declare hona is a big thing and jab musibat aati hai to wholesale me aati hai so waha udar hua kya apne yaa pe satyam fraud i'm sure you might have heard about this also satyam fraud was again unveiled in this same time frame so two major things coming right back to back and you can imagine that the sensex crashes from 17 000 roughly to roughly 8 000 9 000 points on sensex is that going to be a huge one yes but please understand this point do you think it would have gone down and down and down and down and down and so zero would it go down to zero never market can crash it can come down but there has to be somewhere some area where it will at least start bouncing back okay there will be some good news in the market so once some news starts coming in now you can see after some news some stability came into the market this was a reversal point okay then again market started to increase slowly and steadily here you can see some hiccups again okay so was modi the one who said that now i'm going to take stock market to 35 000 no no no of course not but then why i mean what is the connection between modi or nda for that matter national what national democratic alliance correct so bjp ka hi bada version so yes they came in power and what power may and market what is the connection do you see any connection between one party winning the election and sensex rising up hey connection more foreign investment okay that could be one reason okay many people thought that there will be some positive changes in the economy any other any other reason any other reason a stable government a stable government is the most positive factor for the stock market otherwise what happens i understand a government is the two-three allies are now when the government says we are going to take this decision xyz decision and the allies say we are opposing do you think then that government will be able to go ahead with all the decisions that they had thought no because they have to go hand in hand with so many people with different mentality now with this nda win what happened was there was a single party which came into power now do you think with this stability they'll be able to take decisions whatever they wanted to take yes and that's a huge positive sign for the market we are in 2019 this is the best time that you're doing this class because there's a repeat election this year now so see this is history what has happened and in stock market we always say that history repeats so you never know if you have a good so again i'm not saying it's bjp or it is congress which has actually impacted the market no it's not because bjp won it's not because congress lost i'm not saying that it's because we had a stable government if we have a stable government in 2019 again with good majority then do you think this history will repeat any guesses yes ideally yes ideally so that is why understanding all the terms right now is very important you can start with your investment with a very nice uptick in the market okay so i hope now with this you have understood that there are loads and loads of hiccups minor cheize ienge market may no doubt about that but if you see in the long run now do you think that's an all this investment in stock market is risky or not that risky if you talk about the long run not that risky so i hope you're convinced okay so that was the first myth that investments in stock market is risky i have convinced you with that that long run okay so let's move on to the myth number two you need to have a very strong knowledge about finance then only you can succeed in stock market okay if you are from a finance background will that help obviously yes i can't say that anyone and everyone without reading anything can work wonders in this subject but there are many many people who don't have a finance background but still they have worked wonders in the stock market have a look at this list of successful billionaire indian investors coi successful stock market king you know outside india any person you know outside india who is very successful warren buffett everyone knows that warren buffett was a person who started investing in stock market at the age of 11 or 12 and in his book he has written that i regret that i started investing investing in stock market at a very late age so 21 still we have not even started investing in stock markets so let's talk about indian rakesh junjunwala how many of you have heard this name yes one two three four five okay so he's like the indian warren buffett basically he has an amazing net worth and those who have learned tax till the till one or two years ago there is something known as a long term capital gain tax what is a long term capital gain tax for those who don't know about this i'll just quickly tell you in brief long term means you have to buy the shares and you have to hold the shares for minimum one year okay after holding them for one year if you sell it and if you gain from that if you win money from that then it will be known as a long term capital gain long term kyu bolu for fata fata ek bar fir se why long term you have held it for more than one year so you assume you bought it in 2017 jan and you are selling it in 2019 feb obviously it's a long term asset and capital gain because assume you had bought the share at 100 and you sold it at 150 so that's a gain so ideally 50 is your gain yes or no quickly yes 50 is your gain is it like your income it's your gain is it like your income yes obviously so jab bhi income aata you have to pay income tax agreed this is like your income you have to pay income tax but there was a provision in in income tax which said that if you have a long term capital gain you need not pay any tax on that zero tax so you can imagine all these successful investors they are earning not in thousands or lakhs they are earning in double digit crores triple triple digit crores possibly and how much tax they are paying zero legally or illegally legally so can we learn from them can we use the same strategy but can we at least go ahead with this that we can buy a stock and try not to sell it within one year so if you do that obviously whatever gain you are going to get that's going to be completely tax free okay let me ask you a basic question when you invest in shares do you get something in return like a simple comparison is if you invest money in fd what do you get in return interest correct if you invest in shares do you get interest no what do you get dividend what is the terminology that is known as dividend okay i'll just write few things here okay now let's understand a very big difference between interest and dividend okay i'll just try to the point which i was talking about is difference between interest and dividend interest is on fd have you heard about debentures debentures it's it's more or less like like an fd but it is a security based thing it's not depth management but mainly the instruments the financial instruments on which you get interest i want a quick feedback for this can interest to vary on fixed deposit can bank say this time you'll get four percent next year you'll get a four and a half percent next year you'll get five percent can bank vary can bank vary the interest uh might happen by the way might happen why i understand why i understand uh bank declares the interest rates well in advance it's not like a surprise please understand my question would it happen something like this that maybe you made an fd on let us say first of may okay and at that time bank had promised you at the rate of seven percent can they now say in between somewhere around october we are very sorry to inform that now the rates have been revised to five percent can they say that no now they can't say that they will have to pay you at the rate of seven percent at least till your fd matures let us say it it matches on 30th april is this okay they can't change the interest rate in between only but wait can they declare five percent rate in october for all new fds starting on or after october now everyone agrees of course this is a very big drop this never happens but just as an example i'm talking about so once a return is given on fd at the beginning of the year or at the beginning of you starting the fd can i say that will continue irrespective of changes in the market aapko jo promised return is that going to continue till your fd matures for you all aapke liye toh same rayega for a new investor could that be different yes achha one more simple question can bank say that this time na thoda business achha ne hua this year will not give interest next year will give a little bit more interest can bank say that is interest payment optional for the bank or is it mandatory for the bank it's mandatory for the bank you can't say i will decide whether i have to give or not okay but then if we talk about dividend dividend kiske upor milta hai shares okay now the important point is it mandatory do you have to give dividend no it's not mandatory achha let me ask you one more question if company is doing very good amazing its sales continuously increasing its profits are continuously increasing they have doubled their profits they have tripled their sales still can the company say nai dena dividend can they say that then can shareholders say is there any company who has earned a lot of profit and has refused dividend apple also google google is one company which has been earning loads and loads of profits but they have not given dividend you know the reason why what they say is that will give you dividend dividend at the rate of five percent five percent dividend will give you but then they asked a question to the investors do you have the capacity to reinvest to this money understand this carefully assume that they gave five percent dividend so every shareholder got five five rupees i mean dollars let us say that five five dollars now the management or you can imagine the board of directors in one of the meeting said how much can you out of this entire money let us say five dollars they got as a dividend okay where can you reinvest this money they said some said we'll invest in fd some said we'll invest in some other stock you know what are the fd rates in usa are around two to three percent two to three percent but their loans are also very lesser you'll get a loan in roughly four percent also job 10 percent okay so then google asked you have the capacity to to reinvest this money only at the rate of two percent so yeh paisa kitne rate se grow ga two percent but if you invest this money back into google we have the capacity to increase the value of this at a much much higher rate yeh kaise hoga how can google reinvest it in the business how can google read reinvest in the business tell me can they expand their operations can they in uh you know invent new and new and new products and gain share out of that yes watch kala na google home powered by kya hota uska naam ke alexa and whatnot alexa na you have seen coffee with karan na alexa turn on rapid fire lights alexa turns on the rapid fire lights there is a big uh you know uh thing which even google has contributed to this alexa jitna bhi bikega product google home jitne bhi bikega can i said google is going to get profited with that obviously more and more ventures they go into more and more profit they are going to earn and more and more profit they are going to earn then what will happen tell me their share price should ideally increase are you getting this ekbar fir say newer and newer businesses newer and newer very important successful businesses their sales are going to increase if their sales increases ideally their profit should increase if profits increase share price is obviously going to increase and share price increase to return to investors will increase so let us understand originally assume assume that the share price of google was hundred dollars per share now do you think it's going to stay at hundred or it'll rise for sure it'll rise let's say it goes up to 110 dollars with this good profit tell me how much is the return 10 percent 10 percent 10 was the initial investment you got 110 so 10 percent return now what is google management saying again you got 110 so 10 percent return now what is google management saying again how much did you get to 3 percent how much did we get to get to get to get to get to 10 percent so if we give dividend to you you will not be able to invest it in a better manner we will be able to reinvest we will be able to give you better returns so important concept for those who are learning this for the first time interest versus dividend we get interest on what fds right now let's let's not talk about debentures we get interest on fds we get dividend on shares is interest once declared is it fixed for you at least for you is it fixed yes once company starts can they declare a dividend and is it mandatory that they have they have to keep it constant for years to come or they can decide whether to give or not they can decide it's fluctuating in nature okay and one more very very important point we talked about right now is the concept of ltcg ltcg kia thapna long term capital gain long term kap bolta hai if you are holding it for more than one year and whatever gain you get is it taxable or tax-free tax-free now let us come to one more tax treatment for interest versus dividend so you should know this before investing i'm sure you might have those who are those who come from ca background you have learned this in intermediate but that you had learned only from the perspective of clearing the exam now we are talking from the perspective of investment okay so whenever you invest money in fixed deposit you will get interest is this interest taxable is interest taxable yes at what rate depends on your level of income depends on your level of income so you all are students right now your income is definitely less than two like fifty thousand up to five lakhs your income is less than five lakhs you can enjoy can you invest in fd can you get interest and still not pay even one rupee of tax yes that is possible but don't keep the aim that we have to become tax-free for the entire life that should not be your aim should be when will i go into the tax limit and when you enter that then the question arises interest low your dividend low what is the tax treatment for dividend taxable tax-free it's tax-free there are certain limits for that okay again we are not going to go dig down so much deep in the first session itself but dividend prima facie is tax-free okay so 30 percent tax lab you are a tax-free person does not matter you whatever dividend you get are you going to pay even one rupee tax legally or illegally legally so the share market you are getting on shares investment only and both are what tax-free there are certain limits we are going to discuss that so you can note down all these basic points at least at least the main main terminologies as such so what is the first terminology i talked about right now l t c g long term capital gain l t c g long term capital gain chalo tell me fata fata l t c g kya hai haa woh toh hai meaning kya hai okay so if a person if a person holds shares if a person holds shares for more than one year if a person holds shares for more than one year and earns profit and earns profit it is known as l t c g long term capital gain okay second concept concept dividend who can tell me in simple words see we are not going to go by definition sir there are proper definitions for all these things we are going to understand the meaning rather than definition you you have seen three dates na three dates no book ka definition bolta hai paper jacket and bound this that this that easy meaning ma bata ho gya sir kitab bulh gaya toh bolhaya aise mohle na waisa ap on likh rahe na ek dem simple words meh right so who can tell me what is dividend can i say in simple words it's nothing but return on investment in shares yes so write down dividend is what return on investment in shares one more very important point to be written there what will you write very important is it mandatory for the company to give dividend every year or company can it's company's decision whether to declare dividend or not it's company's decision okay so one more line it is the company's decision whether to declare dividend or not is this okay okay aachaa ek point bolani tha abhi tak woh bhi bolinke just remind me about dividend is given on what yeh batane ka abhi face value concept ane wala okay so before we move on to that very important point kya likhna abhi tax free hai hai yes so write down the third important point dividend and ltcg dividend and ltcg are tax free for individuals dividend and ltcg are tax free for individuals what happened is subject to limits subject to limits okay i'm i'm going to ask you it's your choice but uh i always feel that you know when you come in the class you are a student then you should not get that feeling that looking at bc final me hu ya bade nahi hai kya hai so shall i give you homeworks something you go home and at least do a google search so this is exactly your homework limit is there any limit so i'll give you a simple example understand what is the question what is the homework you have to understand if i earn hundred crore rupees of dividend wow i will not be in the class i'll be just enjoying all holidays entire life okay if i earn hundred crore rupees of dividend do you think hundred crores will be tax free ideally not let me twist the question if i earn one crore rupee dividend one crore rupee dividend will that be tax free no no no no so there has to be some defined limit no are you getting my point there has to be some limit which is defined yes similar question copy paste for ltcg hundred crore ltcg one crore ltcg one lakh ltcg so there has to be some limit you just have to google and find out limit till what dividend is exempt and till what ltcg is exempt this will take not more than five minutes okay but you will get that feeling homework yes so everyone is going to give me answer tomorrow for this very good important concept one more dividend is paid on what he concept so give the next heading as face value okay this is a very very very important concept so i want maximum attention okay those who invest in shares you might have heard something coming up in the news wherein the management says that we are giving 100 percent dividend management says this hundred percent dividend dividend and those investors who are not really sure ki kya chal raha anko lag raha do you think hundred percent dividend is possible yes it's hundred percent of what is the question 100 percent of market value 100 percent of market value like you know there's a share britannia to sab ne suna biskut khate ho kini britannia do you know the roughly not exactly exactly roughly current market price of britannia maari biscuit five rupee ka 10 rupee ka uska share value kitna britannia company ka share value kitna any idea it's roughly around three thousand one hundred rupees per share per share three thousand one hundred rupees now you can imagine management says hundred percent dividend on three thousand one hundred no no no no no no on the face value now important is what is face value i'm going to come to that palace ka face value kitna batati ho face value is two rupees okay face value is two rupees market value is three thousand one hundred rupees so whenever company says two we are declaring hundred percent dividend means two rupees dividend okay so what is this face value exactly anyone knows the original price at which the share was bought by the promoters of the company okay promoters must have promoter is a person who starts the company those who don't know you may write it down also promoter promoter is a person who starts the company because you're going to come across these terms so frequently on business channels promoters promoter is a person who starts the company so tell me who's the promoter of reliance industries dirubai ambani but wait now he's the promoter one two start wala ho gya ab toh ho nahi hai so could there be multiple promoters now yes now there is a possibility yes sirf initial stage pe ho jata hai when you start the company that person is known as the promoter but could there be multiple promoters also kya 4-5 log milke company start kar sakte kya why not yes all these people will be known as promoters again i'm repeating this is the base level definition okay base level meaning higher level meaning hone wala hai but if i start discussing all these high fundu ideas today only you will get scared project them basics promoter a person or group of persons who start the company so can imagine something like this we all start a company hmm karengge na haa bolo haa karengge chalo sabne 1,000,000,000,000 just an example okay so everyone contributes 1,000,000,000 and we create a company known as abc limited do you want a proof that we have invested 1,000,000,000,000 in this company yes see binda sa dal diya proof toh lagi ga na proof kya lagi ga abo we have invested in this company agreed but a very basic question which arises humko kya milega okay if you are you all might say see i have come up with the initial proposal hum sab milke company start karengge hmm but right now i'm saying company agar start karne toh paisa lagega initial contribution lagega hmm so i say everyone has to give 1,000,000,000,000 now the very first question you are going to ask me is that if we have these 1,000,000,000,000 if we invested in a bank you would have got interest correct if you had invested this 1,000,000,000 in the bank you would have got interest but then i'm saying don't invest in the bank give it to me or we all will start a company with that you will ask what will we get in interest milega kya if we invest in this company interest milega nahi milega kya mil sakta hai kya mil sakta hai kya mil sakta hai dividend mil sakta hai because you all will be the share holders of the company but share holder banne ke lihe shares toh milne chihye na pahle so now what happens let us take an example company ka naam abc limited okay let us say there is one person who has invested one lakh rupees so would he ask for some receipt ek lakh rupee bharah uska receipt de do hmm what is this receipt you said it that receipt is nothing but a share certificate okay so here you can see there will be a share certificate which mentions name of the holder okay and and kitne rupee bharah ya aega ya kitne rupee ke worth shares mila ya milega shares shares kitne kya abc shares kitne case ke lihe face value apa ya na chihye so face value lika reka baut clear lika face value is two rupees let us say hee yi kisna decide kya hum sab milke decide karte isko very important isha chihye cisl bus mein initially cover bhi nahi hota hai face value korn decide karta hai law decide karta hai no can there be multiple face values of different different companies means what let us understand not all companies have a face value of two rupees koi company ka share 2 rupee ka ho sakta hai face value there could be some companies which have a face value of 10 rupees also there could be a company which has a face value of 1 rupee also aray ke samaj mein alag alag companies ka alag alag face value ho sakta hai every company can decide in its own face value but who decides who decides promoters we all will have a meeting together and we all will decide we are giving 1 lakh rupees agreed how what are we going to get in return you are going to get in return shares ek share ki kirmat kitne hogi two rupees is what we have decided mutually ham sabna milke decide kaya isko is this okay yes so what will be written on this face value two rupees number of shares likha ra hai ga yes or no yes so number of shares kitna hai ga bolo basic mathematics ek laak rupee di hai ki nahi so divided by two how much you are going to get 50 000 shares so now we'll get this physical share certificate which says rachanai is the owner face value is two rupees how much shares she has got 50 000 we do will we all have such kind of a share certificate yes but now you will say madam please everything is in the demat form correct i'll give you example of our own academy expert professional academy private limited private limited that is also a company think about it now it's also company so has to have a face value yes has to have a face value okay now if we are talking about expert professional academy private limited can you come and ask me ma'am show me a share certificate yes or no yes or no answer is yes yes how not in demat format no it's not in the demat format it's in the physical format it's in the physical format okay first time you are hearing we are in 2019 and kya kari aapka academy expert academy has in physical shares not in demat now let us understand why demat why do you think demat is required huh if the company is listed if the company is a huge company it's listed on the stock exchange bombay stock exchange national stock exchange these sabhi terms ane wale haram se dire dire if company is listed on the stock exchange then you need dematerialized securities demat securities okay relyans industries limited do you think they will have physical shares answer is again yes even today by the way if i'm not mistaken last date is april 2019 which sebi has given as an ultimatum april 2019 is the ultimatum given to the companies you can come across a document you can come across a document name is the name of the document, document name is the name of the annual report okay annual report it's like a report card in simple words it's like a report card of the company okay annual report it's a mandatory disclosure to tell the shareholders as to how many shares are still in the physical form and believe it or not all listed companies have on an average at least one percent of the total shares in the physical form my dad he worked with kirloskar brothers limited listed company okay for so many years almost 32 years he sold the company and then retired at that time he got some shares of the company obviously got in physical he hates the stock market and it's it's always a tendency that whatever your parents hate you have to love it okay so me my brother we both invest in stock markets and the other day we were asking our dad he said still there in my cupboard i said don't do this it'll go waste if you don't dematerialize it he said i don't know how to do it only condition is that i'll then transfer it in my name okay but it'll be worth something there was a very recent story which came up in the newspaper that there was a person whose grandfather passed away and he used to stay with his grandparents very recent story i guess not even one or two months ago and he was cleaning the cupboard actually he was also very tensed up how is he now going to survive and when he was cleaning the cupboard he came across few papers by the way this this went on air okay this was cnbc tv18 you you might have heard about this channel cartoon network there is cnbc channel it's a business channel on that there are people who call and they ask their queries about stock market and there was one guy was saying i was cleaning up the cupboard and i came across these papers and he said these shares if i'm not mistaken it was mrf or some maybe if i'm not mistaken it was mrf only and some mrf i can see some hundred or thousand shares whatever will i get some money out of this any idea what is the share value of mrf somewhere around 35 000 per share and the caller went mad on television the person who was giving the answer was double mad he was imagining why not my grandfather okay so that is the scenario of financial literacy in india he's saying that i find some papers what that's the share certificate okay now i hope you understand this is even today share certificate in physical format yes or no yes don't forget to dematerialize it before april 2019 earlier the deadline was jan 19 they have extended it to april 2019 okay you can also tell your relatives and friends if you have anything in demat format you have to get it converted now the question is okay it's very simple approach your broker okay you must have a stock broker you must have a account with some broker if you don't have one account you can open with one okay and they have a form you just have to fill up a form and after filling the form after giving some basic documents your shares will be dematerialized it's as simple as this okay so now quickly tell me coming back to our discussion what is this document known as share certificate who gets a share certificate the shareholders will get a share certificate original shareholders company promoters who started the company we have given one lakh we have decided mutually the face value will be two rupees how much shares will we get 50 000 each is this okay till here now if our company performs very nicely and if we if we decide that dividend dengya bhi and we say we will give 1000% dividend dividend means how much rupees two rupees how much dividend dividend means how much rupees two rupees thousand percent thousand percent thousand percent not hundred percent thousand percent means 20 rupees na mathematics ka class nahi apna [00:48:36] Speaker ?: hundred percent is two rupees thousand percent will be 20 rupees is this okay so concept of face value is [00:48:36] Speaker 1: clear yes can you now visualize a share certificate also absolutely and all all big companies listed companies is there a possibility that very minute number of shares but will still be in the physical form how do you understand how many shares are you do you know how many shares are in the physical format is this okay for sure but majority shares for listed company will be in the in the demat format demat format demat materialized materialized materialized materialized physical form material material materialized share [00:49:30] Speaker ?: material materialized share [00:49:30] Speaker 1: material materialized share electronic share can we take this journey back also from e-share to a physical share yes that is known as remat that is rematerialization because we are moving from physical shares to demat shares but there is a concept known as remat also rematerialization of shares concept is clear yes everyone i'll also show you some actual share certificate tomorrow i'll get a photocopy or a photograph of one share certificate i'll show it to you okay so you remember your homework i'll remember mine right so can we move on so myth number two which i was talking about you need to have a very strong knowledge about finance now you have a little feel good factor you don't have your own knowledge but one two four concepts with gusun in your mind so he's talking about rakesh jhun jhun wala so rakesh jhun jhun wala chartered accountant ramdev agarwal have you heard about this person ramdev agarwal mothilal oswal haa mothilal oswal is a stock broker he's the founder founder ke li better name promoter of mothilal oswal okay he's also a chartered accountant now we are going down to the list of successful billionaires and now we are moving from finance to non finance now he has a master's degree in commerce and economics master's degree in commerce but in commerce economics not a chartered accountant vijay kedia our fantastic degree bigom bigom everyone studies for at least one hour on the exam day and do we still get a distinction yes you should watch cnbc okay and uh my personal suggestion to you is don't watch it during business hours don't watch it between 9.15 to 3.30 9.15 to 3.30 that's when the stock market starts at 9.15 and it ends at 3.30 everyone will say buy this share sell this share and we'll say are you saying buy we should buy that is not what we want after 3.30 starts the analysis part of shares some news based on the shares and you'll get to see many of these people who actually come up on television and discuss some shares that's actually value addition and poorinju veliat who is he he's a log graduate you don't have direct finance relation next ramesh damani specialization hr specialization and i have 1.24 billion usd multiplied by 70 we'll get indian rupees okay okay a disclaimer it's available on the net and i've just copy pasted it okay so inka net worth change so i'm not responsible for that this is internet data okay and the amazing person mr radha kishandamani check out his net worth 7.1 billion is that's what's going on the net worth of money and he's an undergraduate so that's what's going on the net worth of money and i'm going to do that right now try to implement this in your day-to-day life you know who is radha kishandamani right now try to implement this in your day-to-day life ask any employee who started demut will be some person who started demut he's radha kishandamani okay and he is such a fantastic investor believe it or not rakesh junjunwala who's a chartered accountant says that my guru in stock market is mr radha kishandamani so radha kishandamani had invested so much in equity shares but at one point of time he said that see see the thought process he said for a lot so many years in my life i've invested in shares of other companies in simple words he said i was a part of others success story see the thought process almost for the last 20 years i have invested in different different companies and i am a part of their success stories now it is time that i make my own success story and i make people a part of my success story and that is how he thought that let's start a company let's start our own venture and for that he also stayed in u.s for some time demart johai woh unhone pehle walmart study karne ke baad nikala walmart have you heard about this yes it's a huge chain of shopping malls in usa and he studied where pe kaisa hota kya hota usko analysis karke usko indian markets ki sab se modify karke he thought why not start our own supermarket chain in india and that is how demart actually started okay so now i'm sure demart ki story pata hai kya apko what was the what is the current market price of demart anyone knows no achha ipo ka concept me ne abhi tuk liya nahi apko but just aaj jitna samajh mein aata hai utna dekho otherwise ipo ka concept ane wala aage jaake the ipo price of demart was 299 rupees per share okay i'm telling you in very simple words right now ipo price concept coming back to our own company apne company ka naam kya tha abc right now how many people are invested only we are invested in the company right now ap company badi hori hai we need more funding okay so let us say 200 more people come in and join our company now a company which started as abc private limited now we move up to abc limited or public limited the name itself suggests abc private limited now abc public limited will there be limited number of investors we offer much much more investors much more investors assume we have now 500 members in our company 500 shareholders in our company we can't still keep it as a private limited we have to convert the company into a public limited company but now still we need more money we need more shareholders to come in to give in money so what is one more option list it on the stock market okay this process i'm going to explain thoroughly tomorrow but as thoda sa ek brief me samjha rio apko journey samajlo journey starts with a generally starts with a private limited company moves ahead to a public limited company then can grow large to a listed company that's also a public limited company by the way but it becomes listed on the stock exchange so now when other people want to come into the market they want to they want to be a part of demart coming back to our example now dhanse suno bhot dhanse suno apna jo abc ka face value two rupees now do you think the new investors which are going to come in we are going to offer them at two rupees we had started it with two rupees per share but it has been let us say five years that we have started this company now company is becoming big success or a company go do you think we are going to offer them at two rupees only or much higher price much higher price so let us convert this example into demart now assume face value of demart was two if i'm not mistaken it was 10 but let's take continue it too but they said jinko ab ana hai hamaari company may we are going to offer them at 299 per share your choice there might be some investors who might have said now you are demanding at 299 so are they asking for extra money from you all yes why is this a completely new venture or it is established now it's established risk for the new investors will be less or more as compared to us will be less to establish so you have less risk so pay some extra amount for that and a technical term comes up we say these shares are issued to the shareholders at premium issuing of shares at premium normal english whatever you are issuing it premium means what is it higher than the face value 2 rupees ka kitne mil rahe 299 per mil rahe so we are issuing the share at premium but then the shareholders might say are we are taking it at 299 what will be the benefit to us do you think it might get listed on the stock exchange even at a higher price yes and believe it or not this share got listed on the stock market at 600 rupees roughly roughly 600 rupees do you know any shareholder of demart who had invested in this ip of 299 standing right in front of you i had purchased at 299 and day one of listing this listing you will know in coming days but it gets listed on the stock exchange on bac nsa 600 rupees and many of my friends immediately sold it on the same day double return less than less than one month less than one month double returns i said what to do what i did was i said i'll sell half of my shares so what happens if i sell half of my shares is my money is my money recovered completely so just as an example man ke cholo minne so shares lagaya tha at 299 if i sell 50 can i say my basic cost is recovered now whatever is invested that's like completely gain which has been reinvested so i don't care about that now and you know the current market price it's around 1100 rupees okay in next one one and a half year 1100 rupees so there are loads of success stories you have to understand which share can perform better it is itna zyadha is basics main nahi ane wala hapko just an example you must know these fascinating stories about stock market and then only you'll get get more and more interest in this so abhi concept kaunsa aya tha bolo face value ka aya tha face value isko kya bolte issue price okay sab aane wala hai but sirf abko i kribais karari and 600 is the listing price at which it got listed on the stock market why did i give this example to you we were talking about whom who is the name what was the name of that person mr damani educational qualification undergraduate net worth 7.1 billion usd okay so do you think ki definitely we can reach not even 7.1 billion dollars but kuch na kuch aage kar satte is area mein even if you are not from finance background is it possible very much yes so i hope you are convinced aageya convinced all apna hashtag convinced that you need not have compulsorily a finance background so that you can invest into stock markets you just need to have that much inquisitiveness about the stock market okay myth number three kya deko small investors like me cannot make money from the stock market you need lots of money to invest in stock market you might say you might say madam stipend ni milta hai ek haja rupiah 2000 rupiah working you might get more money but then you might feel 7.1 billion dollars apna whatever okay 7100 rupees so what what to do with that do you really feel with a small amount you can really gain from stock market with a very small amount can you start investing in the stock market is there any limit ki kam se kam itna to ek lak rupiah to kam se kam chahiye chahiye iise kuch hai can you start even with 100 rupees yes you can start with 100 rupees also no no problem about that i'll tell you a fantastic story i'll tell you a fantastic story parinju veliath i told you he's one of the successful billionaire investors in india ab uski story deko unki story deko he comes from a very poor family in carer he struggled for his education due to the financial condition he comes from a farming family actually what i read about him that he had his parents were farmers and they had a very small piece of land in kerala and when parinju was in school at that time he always used to be the school topper class topper school topper his teachers told his parents that you should not stay in the small village in kerala you should go into the cities give him good education he will definitely become a much much brighter kid the parents said we don't have that much money to go in city so what they did was they sold off their farmland and with whatever money they got they shifted to some city in kerala city in kerala he started his education education my graduation graduation ho gaya graduation hone ke baad he joined erna kulam telephone exchange as an operator stock exchange ne telephone exchange and that was an operator of telephone exchange means you might have seen let us say something happens to your phone and you call the customer care na something like that that's where he had joined but when he started working there simultaneously was also completing his law graduation graduation he completed his law graduation from erna kulum stock from erna kulum law college and then what happened after his graduation he started i mean during his graduation only he had started to get some idea about something there is something known as stock market he started reading on that and after reading through some books through newspapers he thought that let's have some practical knowledge on that and for that he had an opportunity to join parag parik securities but i parik securities is nothing but a stock broker you know any stock broker by the way abhi abhi manek nam liata thodi der phele motilal oswal that is one stock broker any other stock broker you know angel broking is a stock broker any other share khan is a stock broker any other edelweiss is a stock broker any other zero da is a stock broker he alag alag stock broker say okay we say parag parik securities also stock broker okay so he joined and after parag parik securities he worked with geojit geojit is also a stock broker okay abh in ko thoda thoda maza ane laga stock market mein and with this when he started working he started to get some practical knowledge he started to invest in small amounts and with his amazing fundamentally thinking power what he did he went a long way and after getting some experience he started his own venture which was equity intelligence private limited kud ka venture start karna is not a joke when you are a log graduate have got nothing to do with stock market so you can imagine how much self-study he must have done at that time even my class was not done basics of stock market so he had to do complete self-study he did an amazing self-study got some good practical knowledge and then he started his own venture and you know what happened after some years he became one of the successful billionaires and now what happens is he had no home to stay at one point of time and he is now among the best stock pickers of india so in ki jo story manne suniti usme there are two three points which i have not put in the slide so i'll just tell you orally that when he started working he started investing and his funda his funda his funda of investing is that try to search companies which are undervalued invest in them and when they reach their actual value that is the time you should sell them so basically he believes in value investment sasti cheese lelo when it reaches its actual value sell it off that's that is what his investment funda is and with this investment funda he he became so famous and he became so rich that do you remember in the beginning of the story i told you that his parents had sell had sold a farmland after earning a lot of money he went back to his village he found out who's the new owner of that piece of land he said price what you tell an area what i want he bought that same piece of land at the price which the new owner had discussed and he has built a big farmhouse in that area only same area just try to google it out on internet porinju veliath farmhouse and you can see amazing following photographs audi car he is sitting on the car and there are there is a peacock on his shoulder and so many birds which are around it's it's in that same farmland which i was discussing so now you can imagine this success story there are thousands of success stories i have just talked about one and there are thousands of failure stories also you might have seen in the newspaper also whenever market falls there are such stories also i'm not going to tell you only the goody-goody part of stock market you have to know the realities of stock market it can make you a hero or a zero both ends are possible if you do it systematically you have to become a hero okay so like porinju veliath now i hope you are convinced that kya he had no home to stay he had started with that amount and today he's among billionaires so can you start investing in stock market with a very small amount also is it possible absolutely yes there's no bar that you should have a lot of money for that but now i'll tell you the problem with his investment psychology okay problem is that he keeps on investing in very small and unknown companies please understand this last part very carefully okay he he always believes in investing in what small and unknown companies and then he says when it reaches its true potential when it goes big it grows big at that time it's going to be a big profit agreed yes but now you might say number one we don't have that much knowledge number two we don't have that much time to do a research and find out all the small companies which are undervalued do you think if you invest in large companies can you get good returns mind blowing returns large companies i'll give you a simple example everything and which is the company that i'm going to talk about renowned company which has given strong returns very renowned one is lnt of course and uh the one which i'm going to talk about is britannia which i gave as an example some time ago you have to use common sense while investing in stock markets common sense works best in stock markets just have this thought process in your mind how many indian households might not be eating mari biscuit it's like you think there will be even one indian household which does not eat biscuit one indian household that definitely we have so many people who are living even below poverty line but you look at cities city areas so now tell me is there any death for their basic product no death for the basic product and if their product if they come up with newer and newer products if they innovate more and more then don't you think their sales are going to increase slowly and steadily yes again your original fund if your sales will slowly steadily increase ideally ideally profit profit will slowly and steadily increase and slowly and steadily share price also has to increase so for that i have taken one small chart for you all these figures are rupees in crores we are on the last 15 minutes so i want 100 percent attention the very first terminology is turnover turnover is nothing but sales and here you have profit what is the basic difference between turnover and profit basic difference between turnover and profit turnover is sales okay and profit is after deducting all expenses what you get is profit in simple words can i say turnover minus expenses is profit before tax in many business channels in many business channels they'll say top line growth and bottom line growth and bottom line growth what is it top line growth and bottom line growth what is it top line top line is nothing but turnover in simple words top line is nothing but turnover you want to write this down top line because this is the word that all the analysts use top line top line means what turnover and bottom line bottom line is profit generally profit after tax okay now let us see what has happened always remember whenever you're doing any analysis at least do an analysis for past five years try to see their growth story starting with how much 2014 i have taken the data till 2018 2019 march so i can't tell you 2019 figures see their turnover story started with 2014 but 2014 turn over how much is it in 2014 but how much is it in 2014? 6300 rupees round up? rupees in crores 6300 crores is the turnover moves up to 7200 crores moves up to 7800 crores 8500 crores 9200 crores has the turnover increased slowly and steadily? yes now let's check the profit profit profit profit profit profit profit profit profit profit profit I am going to wait for one minute I want to see your analysis analysis only on turnover and profit figure this does not require finance knowledge this requires only common sense turn over and profit is there a possibility in some cases turnover might increase but profit might decrease do you think that's how it can happen? turn over increased sales increased but profit decreased or losses increased do you think that's how it can happen? when your expenses increase out of proportion your expenses are much much higher than your sales numbers also amazon, flipkart, mantra, all these online companies are increasing their turnover top line but they are in bottom line losses amazon is in loss yes discounts that they give cash backs that they offer everything is going into losses they are just into the phase right now wherein they want to give i mean you want to you know just imbibe this culture among ourselves that online but i feel somewhere down the line indian mentality is a little bit different in marathi we call that whenever we get it at discount whenever we get it at a rock bottom level then only we are going to enjoy it even today i do like this that maybe uh on book my show there is this internet handling charges on book my show and if i know that this picture even if i go directly there i'm going to get it i will not book it through book my show why to give 50 rupees extra this mentality is very much prevalent in indians and that is why the internet shopping companies e-commerce companies as they call they are having a very nice top line but their bottom line is not strong because their control over expenses is not that good okay till here yes now going back to the story or can all is the or cap cap so much mehara anything else any other relation use your logic i'll wait for a minute hint 2014 to 2018 compare anyone anyone proportion of proportion of increase that's the right answer proportion of increase turnover has gone from 6000 to 9000 i'm rounding off the figures so how much turnovers turnovers has increased in five years array how much times it has increased 1.5 times 1.5 times turnover has increased from 6000 to 9000 and what about profit 370 ka 948 almost three times almost three times now is this an amazing scenario you're doubling your so you just have not even double the turnover 1.5 times of the turnover but profit level you are going three times and friends those who have learned leverages here thoda leverage ka concept but it's okay we are not here right now for leverages but can you say this is a good story yes do you require finance knowledge for this this is logic this is common sense so what you can do take a five years chart check how much the turnover has increased and check how much their profit line has increased instead of saying turnover and profit what are you going to say now check their top line growth i said bhaari lagna chihye the top line growth and bottom line growth and if the bottom line is growing at a higher pace or lower pace at a higher pace as compared to the top line growth is it a positive sign yes now do you need to find out all these small and undervalued stock or is this a very famous stock very famous of people say we are scared to invest in stock market hurry you invest in britannia by paying money for buying the biscuits that's also an investment so if you're buying shares of that if you're buying biscuits of that company buy shares of that company also no why not people say we are scared about stock market they'll keep money in bank of india okay in fd why are you keeping money in bank of india bank of india is safe you feel bank of india is safe then invest in shares of bank of india are you getting my logic if you in if you have faith in some organization why not buy shares of that organization rather than buying only biscuits of that organization but don't blindly buy it also check their financials and then buy it does only a study of past help or do you need to know about their future prospects also future prospects ke baare mein bhi thoda pata hona what is the current market what was the price share price let's let's let's quickly go through the share price now hee bhi bhot amazing part share price ka kya hale dekho turnover toh kitna for the answer shee turnover increased by 1.5 times profit increased by three times now share price eight hundred rupees moves up to five thousand rupees 4 970 almost moves up to nine to five thousand rupees so eight five or forty huh so has the share price increased more than five times quickly turnover increased by 1.5 times top line bottom line three times share price five times so had someone invested in 2014 at eight forty three rupees the current market price would have been four thousand nine seventy this is market prices on 31st march 2000 is yee wala eighteen the latest price away today is 11th february meinne 8th february ka jo liya hai price that is three thousand three thousand three thousand three thousand one hundred ten good or bad good or bad it's good really why if someone had invested at 2018 then it's bad oh company share price has gone down from what on 31st march from 4970 roughly 5000 rupees to three thousand three thousand one hundred and ten why this damage happened any idea no so understand we are going to the last concept for the day so let's focus this is known as the concept of stock split this is known as the concept of stock split last five to seven minutes hundred percent focus stock split kya hota hai abhi abhi abhi me bholata we have talked about a concept of face value today okay face value of britannia two rupees market price of britannia as on 31st december was roughly around 5000 rupees now tell me what happens can small investors buy into britannia yes or no small investors do you think they'll have the capacity to buy britannia shares why to buy one share they require 5000 rupees they can't buy such such a share so liquidity liquidity more and more people buying more and more people selling will that be comparatively less or comparatively more comparatively less because people who are buying into one share for 5000 they are going to be comparatively less so company says that if the market price itself goes down so that more and more people can buy that will be good market price goes down is good can company declare from tomorrow so that all poor people can invest in our company from tomorrow revise share prices 2500 chale ga kya who will be mad at them who will be mad at them who will be mad at them who will be mad at them who will be mad at them who will be mad at them who is that's not our mistake so now what has happened to understand company says don't worry what we have done is we have split the face value from two rupees to one rupee face value of this share which was two rupees 2 rupees now they have said now this two rupees we are taking it as one rupee but now let us understand the impact every one of us had how much shares tell tell me originally originally we had how many shares of britannia 50 000 rupees because we had purchased because we had purchased two rupees totality one lakh rupees we had invested agreed but now today company is saying that we all take a decision that now this value is not 2 rupees now this value is 1 rupee price is 50 000 this does not happen so understand what happens if they are splitting the face value from two to one what is the basic objective should this one one lakh remain intact should this one lakh rupees remain intact yes so what they will do double the number of shares face value goes half no problem double the number of shares so now everyone will get 50 000 additional shares do you have to pay anything you'll get 50 000 additional shares of how much face value one rupee okay so up how do you revise scenario how much shares do you all have including me one lakh shares of one lakh shares of one rupee is our value intact or is our value damaged it's intact yes what is the benefit now market value which was which was 5000 market value market value which was 5000 per share this one lakh shares now do you think it should be one lakh into 5000 now the revised price please understand this is basic mathematics again basic mathematics please pay attention 5000 corresponds to two rupees face value basic ratio 5000 rupees corresponds to two rupees face value so for one face value what is the corresponding face market price that should be 2500 are you getting my point yes so the moment stock splits quickly i want correct answers moment stock splits from two to one your face value your face value has half the number of shares have doubled and the market price has also halved market price is also half because the see this is your normal ratio 2 rupees ka face value 5000 is the market price for one rupee face value it has to be 2500 but people don't understand this what will people say what will people say 5 000 rupees share went down to 3 110 very bad now tell me why did this happen because there was a stock split britannia had declared a stock split in august 2018 if i am not mistaken it was 20th august 20th august 20th august 2018 us ke baat kya ho gaya bolo fat fat 2 rupee face value share went down to one rupee face value share because topka price 5000 went down to 2500 good or bad or neutral neutral there's no good or bad thing but those who don't understand this what will they say gone companies into a very bad position they have halved their share price and mad people will start selling shares of britannia should we be among the smarter lot we should be among the smarter lot ideally now will more people ideally should they buy in more yes and we should be among them so now what is the current market price now it is 3110 are you getting my point how much percentage return if someone bought it 2500 what is the percentage return basic mathematics 2500 ka 10 percent to aram se calculate 250 250 ka double 500 500 plus 500 300 so ito 20 percent ke upper ho gaya getting my point or not when had we bought the share assuming post split we buy more shares split ke baat price kitna ho gaya ho ga bolo original price original price before split how much was that 5000 was the share price before the split after the split 2500 assume we buy at 2500 what is today's market price 3110 how much is the return this is a 20 percent return more than 20 percent return in how many months in august me ho gaya september october november december jan and feb chalu hai within six months 20 percent return fd nahi data itna return are you getting my point yes stock split ka concept samadh mein a gaya have you written stock split in your notes what happens to the face value does it increase or decrease decreases ach a one minute is it necessary that it it has to be half not necessary it can be some other also so for example 10 rupee ka face value if some company has a face value of 10 can they bring it down directly to 2 possible or not possible in our example what is happening 2 rupees face value is coming down to 1 rupee face value so in simple words what is the stock split the face value of the share is split the face value of the share is split number of shares will increase proportionately number of shares will decrease proportionately increase proportionately number of shares will increase proportionately okay you want to write down an example example right now original fv you can write it like write it down like this original fv revised fv original kitna tha polo 2 rupees revised fvs one okay now number of shares originally originally how much did we have in our example 50 000 so revised number of shares will be one lakh therefore value value kitna ho gaya bolo value is intact na there's no there's no change in the value value is intact this okay is this okay yes so i hope you have understood this is this a bad thing that it moved down from 4900 to 3100 that's a good one it's a good one why there was a stock split because of which this happened okay so itna basics to apne dekhna chai and just last slide may we are just going to check what are some operational facts about britannia again i found it on the internet only okay so britannia is mainly a biscuit company where 70 percent of the indian households consume britannia products oh entire indian 70 of the household indian households consume britannia products it's present in 79 countries not only in india it's present in 79 countries and addition of 13 new markets they are aiming in 2017-18 category of business accounts mainly it is into biscuits but i'm sure you might have heard about britannia cakes breads toast and they are also now coming into croissant croissant it's it's a french uh bakery product it's it's like toast i mean kari kari visket agar apne suna kari jese hai but achcha design wala shank jese dikta hai thoda sa that's the kraza okay so they are also entering into kraza they have nine plants right now nine factory nine factories in india so also check their growth story just don't check the past check what the what are their plans in the future in future they are going ahead with 13 new markets they are already having nine plants they are trying for more and more plants they are they were originally into biscuits cakes breads rusco toast they are also going to enter croissant so two things we have learned about basic fundamentals check the past no doubt about that check the trend no doubt about that but also check what are their future plans a very big disclaimer i want to give before we stop i don't recommend this stock right away okay people can say why are you talking about britannia do you own shares of britannia so this is just an analysis of britannia on paper looks good but i am not recommending this stock as such okay it's your choice if you want to buy buy if you don't don't buy okay so with this i hope now you are also convinced that definitely aapke paas agar renowned companies ke baare mein baat kareenge okay renowned companies also can give good returns yes so no need of searching all the small companies which can give potential good returns in the future okay so as basically four things about the stock market number one we said very risky short term i want quick answers now short term could it be risky yes long term not really okay second thing we said you must have a strong finance background required logic works more analytical skills work more number three we said you must have a lot of money to invest in the stock market required is among the billionaires in india now and fourth one we talked about that renowned companies never give strong returns it's not so we talked about common sense again so always try to see products around you which products you are using right now and see you can banata hai i'm wearing will's lifestyle shirt who who manufactures will's lifestyle it's manufactured by itc to brand devil's lifestyle is a brand which which company manufactures it itc itc is it listed on the stock exchange yes so may i go in and buy only those brands of which i have shares so i contribute to the top line story okay yes so try to develop this thought process in your day-to-day life also what are you buying who owns this company and you'll also start going one one step ahead in this fantastic area of stock markets enjoy today's session yes we'll see you tomorrow