This book is designed to provide readers with:

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

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

This book covers the entire syllabus prescribed for students pursuing:

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

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

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

The contents of this book are as follows:

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