Stock Market Fundamentals
COM1FM105 (2) - Stock Market Fundamentals study notes and resources. Browse module-wise notes, preview available PDF resources, and use the related links on this page to move between nearby subjects and study guides.
Chapter Wise Notes
About This Subject
Stock Market Fundamentals (Course Code: COM1FM105 (2)) is a financial foundation elective for B.Com Semester 1 students at Calicut University under the FYUGP 2026 regulations. This course introduces students to the architecture and operation of Indian capital markets. Learners explore the distinct roles of the primary market (Initial Public Offerings - IPOs) and secondary market (trading on NSE and BSE). The syllabus covers market intermediaries, Depository Participants (NSDL, CDSL), Demat accounts, order types (market, limit, stop-loss), stock indices (NIFTY 50, SENSEX), fundamental analysis (P/E ratio, EPS, balance sheet metrics), technical chart patterns, and regulatory oversight by the Securities and Exchange Board of India (SEBI).
Key Topics Covered
- Indian financial system overview: money market vs. capital market structure
- Primary market operations: IPO process, book building, Red Herring Prospectus, and ASBA facility
- Secondary market trading: National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and trading cycles (T+1 settlement)
- Stock market intermediaries: brokers, sub-brokers, depositories (NSDL, CDSL), and clearing corporations
- Demat and trading accounts: opening procedures, electronic holding, and transaction execution
- Order types: market order, limit order, stop-loss order, and intraday vs. delivery trades
- Stock market indices: composition and calculation of NIFTY 50 and S&P BSE SENSEX
- Fundamental analysis vs. technical analysis: P/E ratio, market capitalization, candlestick charts, and trendlines
- Regulatory role of SEBI: investor protection, insider trading prevention, and market surveillance
Learning Outcomes
- Understand the operational structure of primary and secondary capital markets in India.
- Explain the step-by-step IPO book building and T+1 secondary settlement mechanism.
- Differentiate between depository functions of NSDL and CDSL and execute digital stock trades.
- Calculate and interpret key investment ratios like P/E, EPS, and Dividend Yield.
- Analyze SEBI regulations designed to protect retail investors from fraudulent market practices.
Exam Preparation Tips
Master the book building process in IPOs, contrasting it with fixed-price issues. Memorize the functions of SEBI, the difference between NSDL and CDSL, and the T+1 rolling settlement mechanism. Practice explaining P/E ratio, market cap tiers (Large, Mid, Small), and the significance of NIFTY and SENSEX.
Frequently Asked Questions
What is Stock Market Fundamentals about?
It covers Indian stock exchanges (NSE/BSE), IPO processes, Demat accounts, trading mechanisms, market indices, and SEBI regulations.
Which semester includes COM1FM105 (2)?
It is a foundation elective in B.Com Semester 1 under Calicut University FYUGP 2026.
Where can I find notes for Stock Market Fundamentals?
Comprehensive module notes and downloadable PDFs are available on DegreeLive.
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