Module 01 · Beginner
Market foundations
Ownership, exchanges, orders and the risks behind every market price.
7 chapters · Concepts, worked examples and self-checks
Start first chapter →Study it. Test it. Write it down.
The screen price is not the business
What exactly are you buying, and who receives the money?
A fictional company has 10 lakh shares. You buy 1,000 existing shares at ₹200. Your ₹2 lakh pays the seller; it does not automatically become capital for the company. Your ownership is 0.1%. If the company later issues 2 lakh additional shares and you buy none, ownership falls to about 0.0833%. That percentage calculation says nothing by itself about whether the issue created value.
Your research task
- Draw the separate roles of issuer, exchange, broker, clearing system and depository. Do not label all five “the market.”
- For a sample order, record limit price, quantity, validity, partial fills and charges. Explain why the last-traded price does not guarantee your execution.
- Compare two fictional businesses with different share counts. Reconcile price × shares to market capitalisation before calling the lower-priced share cheaper.
What you should produce
Produce a one-page ownership and execution map. Include the cash recipient, your claim, possible dilution and an adverse execution scenario.
The trap to avoid: Treating a low rupee share price, an exchange listing or a famous company name as evidence of safety.
Original hypothetical study exercise. Pair it with the chapter sources below; verify current contract rules and product terms separately.
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