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Money Matters—Stock Meets by ESoM

Everyone has heard of the stock market but only a few know how it really works. In the current era of stock markets and cryptocurrency, it is important for individual understands the fundamentals of finance. To facilitate this, the Economics & Finance Society of Manipal organized their first event of the semester, Stock Meets, on 17th September 2018, at the M.V. Seminar Hall.

The event began with a video clip which showed the lack of knowledge that students in MIT had about basic finance and the stock market. In the video, two members of ESoM were interviewing students on their knowledge of the stock market. This was then followed by a clip which depicted the theme of the evening. It revolved around a child who routinely saved money to buy a telescope, only to realize that its price had shot up by the end of the month. This introduced the audience to the crux of the day’s talkstart investing your money.

Image Credits: The Photography Club, Manipal

The first speaker, Shubham, started off by giving a basic example of how investing money is a better alternative to saving money. He spoke about the effects of inflation and how money needs to be invested in places where it grows. This introduction led to a very important questionwhere should we invest our money? While making investments may seem simple, the difficult part of being an investor is choosing between what one wants and what one needs. The speaker gave an example of how Symphony Ltd. stocks worth one lakh in 2005 went on to be worth ten crore rupees in 2015. The main purpose was to compare the difference in interests of a savings bank account and the stock market. To explain the fundamentals of the stock market, the speaker decided to engage the audience by sharing his own experience. He focused on concepts such as primary and secondary markets, angel investors, and venture capitalists.

The second speaker, Abhinav, delved deeper into the various factors which affect stock markets. The core concepts of demand and supply, equilibrium, and stock exchange were introduced. The speaker provided further insight into different types of trading and brokers while giving examples for each of them.

Image Credits: The Photography Club, Manipal

These concepts were further analysed by the third speaker, Karthik, whose talk focused on the technical terminology of the stock market. The definitions of terms such as Sensex, Nifty, and dividends were explained. The speaker also advised the audience to have a proper portfolio by investing money wisely into different companies. The main objective was to never put all your eggs in a single basket so as to reduce the risk of losing money and can lead to higher rates of return.

The final speaker of the day ended with a very important discussion on investment strategy. Different types of investments were explained along with various possible scenarios of each investment. The talk came to an end with the speaker mentioning the precautions one needs to take before entering the world of stock markets. Real life examples such as the 2008 stock market crash and the Harshad Mehta scam helped the audience get a better understanding of the dangers. The talk concluded with a famous quote by Warren Buffet, “Be fearful when others are greedy. Be greedy when others are fearful.”

Image Credits: The Photography Club, Manipal

The talks were extremely informative and provided the audience with a better understanding of the basics of the stock market. Real life scenarios helped to make concepts more relatable to the audience. “The talks were great for understanding the basics of the stock market. For someone who has prior knowledge of the stock market, the talks weren’t of much help. But for someone who wanted to understand the fundamentals of the market, the event was rewarding,” said Jude Fernandes, one of the audience members.

Featured Image by The Photography Club, Manipal