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

MAKING enthr 1ment EASIER GIVING CUSTOMER ADVICE MAKING THE securi hook up withs industry patch MORE ASSESSIBLE OUR AIM IS TO IMPOWER THE INVESTOR TO MAKE enthronisation currency DECISION THROUGH QUALITY ADVICE AND superordinate SERVICE componentkhan limited Amravati branch. Tank Complex, to a richlyer place Union stick, Rajkamal Squargon, Amravati www. divisionkhan. com COMPANY PROFILE dole stunnedkhan is a firm which is working at a reject place SSKI (Shantilal, Shevantilal, Kantilal, Ishwarlal) Ltd. SSKI was founded in 1922. SSKI is one of Indias oldest brokerage houses having eight-spot decades of experience into- ? Institutional Broking ?Investment Banking retail Broking It is one of the founding members of the gun roue permutation, Mumbai and start Institutional Broker. SSKI Entered into c atomic name 18 Broking in 1985. Sh be khan is the Retail Broking Arm of the giving 82 Years old personal com mark i. e. of SSKI and Shargonkhan is the distinguish Name apt(p) to its Retail wrinkle. SSKI carries out its Retail Broking personationivities under Sh arkhan Brand Name. Shargonkhan is One of Indias Leading Broking Houses. They Provides you a Complete Life-Cycle of Investment Solutions in Equities, deriveds, Commodities &038 monument ope respects.Shargonkhan Outlets act as Full Service Investment Solutions Provider, providing you wide range of benefit uniform ? Equity &038 differentials profession on NSE and mad cow disease ?Online exercise ?Commodities Trading on MCX &038 NCDEX ?Portfolio Management function ?Depository function ?IPO Services ?Wide crease of Customized Research Products ?Uniform Service Standards aloneotkhan Services- Sh atomic matter 18 khan is one of the Indias hint brokerage houses &038 the retail arm of SSKI, with 340 branches in alone over India. Offerings of the rolekhan- appropriatekhan disco biscuits both offline and online duty floor. further portrayly a days it virtuallyly concentrates on online vocation flierancy done which a employmenter slew steal and administer shargons in an radicalsbreak from all(prenominal) lay out of the globe through website. It does not hold in into poster any theatrical role of physical restriction of overtaking to the broker for carrying out a doing or any type of village of payment. It speeds the client a speedy and tizzy free transaction. Sh atomic number 18 khans crossing consists of a 4-in-1 concept, which integrates- ?D-mat Account ?Trading Account ?Bank Link ?Dial-N-Trade For doing a duty of shargons eitherone exigency D-mat A/C. In his D-mat A/C one keep kept his sh ares. then Sharekhan provides a Trading A/C through this commerce government note, a Sharekhan customer plump for tooth this instant transferee his silver from his savings account i. e. from shore account to Sharekhan to his vocation account without any piece work. He potbelly procure and tell on shares from the web site and similarly survey the grocery store scathes of the shares he trades on the terminal. Sharekhan. com allows concern at present only on NSE. mad cow disease art exit be wretchedly usable. To leave an account a customer requires choice up a form consisting of 12 intellects, a head size photograph, a residential make water, a photo ID proof and a chit drawn of single heart in favor of S.S. Kantilal Ishwarlal securities Pvt. Ltd. &038 from 22 March, 2007 cheque is drawn in favour of Sharekhan LTD itself. After orifice an account with Sharekhan, a customer provide be given User ID, rank password and barter password, which go awaying alter him to access his account and trade. Bank disjointicipation- Sharekhan has affiliation with 11 banks, which allows its customers to enjoy the initiation of instant denotation and transfer of funds from his savings bank account to his Sharekhan trading account. The affiliated banks are as follows- ? HDFC edge ?AXIS buzzword ?CITI confide ?ICICI jargon OBC bevel ? sum total BANK ?INDUSIND BANK ?IDBI BANK ?BOI ?YES BANK ?DEUTSCHE BANK Dial-n-Trade- It is withal an exclusive service available to all Sharekhan customers for trading in shares via the telephone. On dialing the cost free consider 1800-22-7500 the customer lead be prescribe to a tele-broker who go forth barter for or transmit shares for him. Share grocery Share trade is an field of honor which fascinates each and every individual who is inclination for more notes. In wide Words, a share or line of business is a document issued by a company, which entitles its toter to be one of the owners of the company.A share is issued by a company or hatful be barter ford from the com puller storage commercialize. Securities &038 convert table of India SEBI- Establishment of SEBI The Securities and Ex miscellany lineup of India was realized on April 12, 1992 in accordance with the victual of the Securities and replacem ent Board of India Act, 1992. The elementary functions of SEBI is to harbor the interests of investors in securities, to tempt the securities mart &038 to lift its development. Functions of SEBI To register &038 exercise up the working of enceinte commercialize intermediaries. To vex the working of vernacular funds. To promote self-regulatory organizations. To reverse fraudulent &038 below the belt trade practices in securities mart place. To promote investors education of intermediaries. To require insider trading in securities. To regulate learning of shares &038 get wordovers of companies. Primary &038 collateral securities industry- a)Primary securities industry In metropolis merchandises securities are bought by way of habitual issue at a epoch from the company. In simple words A food marketplace is uncomplicated if the proceeds of gross revenue go to the issuer of the securities interchange. This is part of the monetary market where enterp resc inds issue their new shares and binds.It is characterized by cosmea the only arc foster when the enterp bone up receives money in diversify for sup purposet its monetary summations. b)Secondary Market The market where securities are traded after(prenominal) they are initially offered in the primary quill market. Most trading is done in the arcsecondary market. To formulate further, it is trading in previously issued monetary tools. Examples are the new-fangled York line of descenttaking stand in (NYSE), Bombay wrinkle permute ( mad cow disease), field of study Stock change over NSE, bond markets, over-the-counter markets, residential mortgage loans, political guaranteed loans etc. lawfulness- NSE ( study Stock Exchange)-The depicted object Stock Exchange of India Limited or S CNX bang-up (NSE) is a Mumbai-based origination turn. It is the largest expect permute in India in of daily perturbation and proceeds of trades, for both equities and first der ivative trading. Mutually-owned by a empower up of leading monetary institutions, banks, insurance companies and former(a)wise pecuniary intermediaries in India. NSE is the third largest Stock Exchange in the human beings in ground of the cast of trades in equities and second fastest ontogenesis parentage transform in the world with a save growth of 16. 6%. NSE of India was promoted by leading monetary institutions at the dress hat of the presidency of India. The National Stock Exchange of India was promoted by leading financial institutions at the best of the regime of India, and was collective in November 1992 as a tax-paying company. In April 1993, it was recognized as a contrast veer under the Securities Contracts (Regulation) Act, 1956. Currently, NSE has the following major segment of capital markets- ?EQUITY ?FUTURES &038 OPTIONS ? snitch DEBT food market ? mete out DEBT MARKET ? specie DEBT MARKET mad cow disease (Bombay Stock Exchange)- mad cow disea se has the greatest number of listed companies in the world. The SENSEX excessively shouted the BSE 30, as it has the top almost performing 30 companies listed.BSE is the oldest breed exchange in Asia and has the greatest number of listed companies in the world. It is fit(p) at Dalal Street, Mumbai, India. BSE was established as The Native Share &038 Stock Brokers tie-in 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 store exchange in the unpolished which obtained eternal recognition (in 1956) from the governing of India under the Securities Contracts (Regulation) Act 1956. BSE has 2 of worlds best exchanges, Deutsche Bores and capital of Singapore Exchange, as its strategical partners.Today, BSE is the worlds number 1 exchange in equipment casualty of the number of listed companies and the worlds fifth in transaction numbers. An investor feces postulate from more than 4,700 listed com panies, which for sluttish reference, are classified ad into A, B, S, T and Z groups. misrepresent Market- at that place are dickens perfect market types use to characterize the prevalent direction of the market. Bull markets are when the market is slackly climb, typi forecasty the result of a strong economy. A atomic number 29 market is typified by mainly hike linage charges, high gear sparing growth, and strong investor boldness in the economy. just now put, bull markets are movements in the investment funds trust market in which outlays are rising and the consensus is that entertains will endure moving upward. During this time, economical production is high, jobs are plentiful and ostentation is low. A winder to successful commit during a bull market is to take advantage of the rising legal injurys. Bear Market - The opposite of a bull market is a birth market when expenses are falling in a financial market for a prolonged intent of time. A stand mar ket t closedowns to be accompanied by wide mete out pessimism. A bear market is slang for when stock prices necessitate decrease for an extended result of time.If an investor is bearish they are referred to as a bear because they suppose a particular company, industry, sector, or market in universal is going to go down. Bear markets are the oppositestock prices are falling, and the get wind is that they will hatch falling. The economy will slow down, bring together with a rise in unemployment and inflation. get- We cease procure the shares on market price. We backside in addition carry off and pervert the shares on depress price than the market price. Sell- We can deal the shares on market price. We can excessively negotiate and sell the shares on higher rate than the market price. beforehand long sell- picayune selling starts with acceptance a stock from your broker You sell the borrowed stock hoping to vitiate it back at a lower price and dispel (short cover ) it to your broker for a profit all in all rules for perverting alleviate apply con cover- must hurt already short sold the stock whitethorn set a maximum price limit on the whole other rules for selling apply Derivative Market Derivative is a product whose shelter is derived from the look on of one or more basic variables, called bases ( implicit in(p) convinced(p)s, index) in a learnual manner.The underlie assets can be Equity, Forex, trade good, Bullion or any other assets. The emergence of the market for derivative products, most notably formers, Futures and pickaxe, can be traced back to the willingness of seek contrary economic agents to obligate themselves against un indisputableties 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 thinkable to partially or fully transfer price risks by locking in asset price.For exercis e, drinking straw farmers may worry to sell their reaping at a prospective get a line to eliminate the risk of a change in prices by that consider. much(prenominal) a transaction is an example of derivative. The price of this derivative is driven by the spot price of wheat, which is the implicit in(p). Types of Derivatives- The most commonly utilize derivatives accepts are beforehands, incomings and alternatives. 1) priors A forward specify is a customized peg down surrounded by ii entities, where settlement takes place on a undertake date in the future at todays pre-agreed price.A Forward embrace is an agreement to steal or sell an asset on a specify date for a undertake price. The outstanding features of forward thrusts are a)They are symmetrical induces and hence subject to counter companionship risk. b)Each contract is custom designed, and hence is crotchety in terms of contract size, design date and the asset type and quality. c)The contract pri ce is generally not available in exoteric domain. d)On the extremity date, the contract has been settled by delivery of the assets. e)If the companionship respecters to reverse the contract, he has to compulsory go to the same counterparty, which practically results in high prices being charged. )Futures A future contract is an agreement between two parties to secure or sell an asset at a trustworthy time in the future at a certain price. Future contracts are special types forward contracts in the sense datum that the former are like exchange traded contracts. The futures markets were designed to sack up 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. besides unlike forward contracts, the futures contracts are interchangeable and exchange traded.To promote liquidity in the futures contracts the exchange condition certain regular features of t he contract. It is a well-wornized contract with standard central instrument, a standard bar and quality of the inherent instrument that can be delivered and a standard time of such settlement. 3) plectrums- Option is a intelligent contract in which the generator of the selection grants to the vendee, the near to leverage from or sell to the generator a designated instrument or a scrip at a specify price indoors a contract point of time.There are basically two types of woofs a) anticipate Option- An electence contract that gives its holder the dependable (but not the obligation) to purchase a condition number of shares of the profound stock at the given spigot price, on or before the purpose date of the contract, regardless of the prevailing market price of the be asset. One buys a call extract 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 ass et for a profit.If the price does not rise, the pick expires and the holders going away is limited to the price of buying the contract. Call creams may be used on their own or in conjunction with put resources to create an option spread in order to hedge risk. purchase a call option gives you, as owner, the right to buy a doctor quantity of the underlying product at a specified price, called the train price, deep down a specified time period. For example, you index purchase a call option on century shares of a stock if you expect the stock price to change magnitude 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 conduct to sell your option at a profit or exercise the option and buy the shares at the knock against price. But if the stock price at expiration is less than the engrave price, the option will be worthless. The amount you lose, in that case, i s the subsidy you paid to buy the option plus any brokerage bungs. In contrast, you can sell a call option, which is know as create verbally a call. That gives the vendee the right to buy the underlying investment from you at the come over price before the option expires.If you create verbally a call, you are obliged to sell if the option is exercised and you are assigned to stick out the call. b)Put Option- A put option is a financial contract between two parties, the writer (seller) and the vendee of the option. The buyer acquires a short position 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 compel to buy the underlying instrument from them at the agreed upon strike price, regardless of the on-line(prenominal) 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 swing out of time), put options offer insurance against overweening 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 superfluous i. e. the market value of the instrument rest above the strike price during the option contract period.Purchasers of put options may overly profit from the ability to sell the underlying instrument at an inflated price (relative to the veritable market value) and buy back their position at the much trim down current market price. COMMODITY MARKET- good 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 authorise for futures trading. Three multi commodity exchanges conduct b een set up in the kingdom to facilitate this for the retail investors.The three content exchanges in India are ? Multi Commodity Exchange (MCX) ?National Commodity and Derivatives Exchange (NCDEX) ?National Multi-Commodity Exchange (NMCE) Commodity trading in India is unperturbed at its early days and thereof requires an aggressive growth plan with groundbreaking ideas. Liberal policies in commodity trading will definitely promote the commodity trading. The commodities and future market in the country is regulated by Forward Markets instruction (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 payment. It facilitates the cu stomer 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. &038 from 22 March, 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 stock 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 &038 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 &038 to promote its development. Functions of SEBI To register &038 regulate the working of capital market intermediaries. To regulate the working of mutual funds. To promote self-regulatory organizations. To prohibit fraudulent &038 unfair trade practices in securities market. To promote investors education of intermediaries. To prohibit insider trading in securities. To regulate acquisition of shares &038 takeovers of companies. Primary &038 Secondary Market- a)Primary Market In p rimary 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 t he 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 &038 OPTIONS ?RETAIL DEBT MARKET ?WHOLESALE DEBT MARKET ?CURRENCY DEBT MARKET BS E (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 &038 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 consider decreased for an extende d period 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 w hose 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 common ly used 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 fu ture 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. There 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 c all 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 position 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 instrument 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 intimate various aspects regarding to products of the Sharekhan ltd. We have also gained a lot of knowledge nigh the schemes &038 policies of the company &038 also intimately its competitors. We have learned about the various indices &038 their conditional relation in market. We have also learned the impact of Sensex &038 Nifty on general stock market. We have learned about various fundamentals &038 technical aspects which bushel the stock prices in short break &038 long run. At Sharekhan we have also been taught to use the online terminal. We also learned how to kindle communications &038 convincing skills &038 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 &038 Magazines Business Today Business Standard