Dhirubhai Ambani was born on 28 December 1932 at Chorwad, Junagadh (now the state of Gujarat, India). When he was 16 years old, he moved to Aden, Yemen. He worked with A. Besse & Co. for a salary of Rs.300. Two years later, A. Besse & Co. became the distributors for Shell products, and Dhirubhai was promoted to manage the company’s filling station at the port of Aden. In 1962, Dhirubhai returned to India and started the Reliance Commercial Corporation with a capital of Rs.15,000.00. The primary business of Reliance Commercial Corporation was to import polyester yarn and export spices.
The business was setup in partnership with Champaklal Damani, his second cousin, who used to be with him in Aden, Yemen. The first office of the Reliance Commercial Corporation was set up at the Narsinatha Street in Masjid Bunder. It was 350 sq ft. room with a telephone, one table and three chairs. Dhirubhai was a known risk taker and he considered that building inventories, anticipating a price rise, and making profits. [3]. In 1968, he moved to an upmarket apartment at Altamount Road in South Mumbai. Ambani's net worth was estimated at about Rs.10 lakh by late 1970s. He exported spices, often at a loss, and used replenishment licenses to import rayon. Later, when rayon started to be manufactured in India, he exported rayon, again at a loss, and imported nylon. Ambani was always a step ahead of the competitors. With the imported items being heavily in demand, his profit margins were rarely under 300 percent. Sensing a good opportunity in the textile business, Dhirubhai started his first textile mill at Naroda, in Ahmedabad in the year 1977. Textiles were manufactured using polyester fibre yarn.[5] Dhirubhai started the brand "Vimal", which was named after his elder brother Ramaniklal Ambani's son, Vimal Ambani. Extensive marketing of the brand "Vimal" in the interiors of India made it a household name. Franchise retail outlets were started and they used to sell "only Vimal" brand of textiles. In the year 1975, a Technical team from the World Bank visited the Reliance Textiles' Manufacturing unit. This unit has the rare distinction of being certified as "excellent even by developed country standards" during that periodDhirubhai Ambani is credited with starting the equity cult in India. More than 58,000 investors from various parts of India subscribed to Reliance's IPO in 1977. Dhirubhai was able to convince large number of small investors from rural Gujarat that being shareholders of his company would be profitable.
Reliance Industries was the first private sector company whose Annual General Meetings were held in stadiums. In 1986, The Annual General Meeting of Reliance Industries was held in Cross Maidan, Mumbai and was attended by more than 35,000 shareholders and the Reliance family.Dhirubhai managed to convince a large number of first-time retail investors to invest in Reliance.Ambani's net worth was estimated at about Rs.1 billion by early 1980s. Over time, Dhirubhai diversified his business with the core specialisation being in petrochemicals and additional interests in telecommunications, information technology, energy, power, retail, textiles, infrastructure services, capital markets, and logistics. The company as a whole was described by the BBC[10] as "a business empire with an estimated annual turnover of $12bn, and an 85,000-strong workforce".
It was widely known that Dhirubhai didn't enjoy cordial relations with Vishwanath Pratap Singh, who succeeded Rajiv Gandhi as the Prime Minister of India. In May 1985, V. P. Singh suddenly stopped the import of Purified Terephthalic Acid from the Open General License category. As a raw material this was very important to manufacture polyester filament yarn. This made it very difficult for Reliance to carry on operations. Reliance was able to secure, from various financial institutions, letters of credit that would allow it to import almost one full year’s requirement of PTA on the eve of the issuance of the government notification, changing the category under which PTA could be imported. In 1990, the government-owned financial institutions like the Life Insurance Corporation of India and the General Insurance Corporation stonewalled attempts by the Reliance group to acquire managerial control over Larsen & Toubro. Sensing defeat, the Ambanis resigned from the board of the company. Dhirubhai, who had become L&T's chairman in April 1989, had to quit his post to make way for D. N. Ghosh, former chairman of the State Bank of India. It is also believed that V. P. Singh's move as Defence Minister came as a direct result of him catching Dhirubhai's tax evasion.
DEATH :Dhirubhai Ambani was admitted to the Breach Candy Hospital in Mumbai on June 24, 2002 after he suffered a major stroke. This was his second stroke, the first one had occurred in February 1986 and had kept his right hand paralyzed. He was in a state of coma for more than a week. A battery of doctors were unable to save his life. He breathed his last breath on July 6, 2002, at around 11:50 P.M.

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If you think that you have some problem in understanding terms related to stock market and that are very common then you must read this it is written here in very simple and interesting way.Your every doubt related to stock market will vanish.

Sensex
Sensex is benchmark index of india which was started in april 1984 it consists of 30 stocks of various sectors the base value of sensex is 100INR and these 30 stocks comprises of roughly 1/5th of the total market cap of BSE,these stocks also have very high trading volume on daily basis.Depending on the companies performance, the Bombay Stock Exchange (BSE) authorities review and modify its composition to make sure it reflects current market conditions.So increase and decrease in the value of these stocks in the sensex leads to the increase or decrease in the value of sensex.List of 30 stocks is given(ACC,Ambuja Cements ,Bajaj Auto,Bharti Airtel,BHEL,Cipla,DLF Ltd,Grasim Industries,HDFC Bank,Hindalco Industries,Hindustan Lever Limited,ICICI Bank,Infosys,ITC Limited,Larsen & Toubro,Mahindra & Mahindra Limited,Maruti Udyog,NTPC,ONGC,Ranbaxy Laboratories,Reliance Communications,Reliance Energy,Reliance Industries,Satyam Computer Services,State Bank of India,Tata Consultancy Services ,Tata Motors, Tata Steel, Wipro)

NIFTY
The NSE Nifty functions exactly like(explained above) the BSE Sensex. The only difference between the two indices is that the Nifty comprises of 50 stocks.Nifty in a way is more broadbased and it consists of all the 30 stocks of sensex and 20 additional stocks, all these stocks are large cap stocks. The Nifty 50 is officially called as S&P CNX Nifty . List of Nifty 50 stocks (ABB Ltd,ACC Ltd,Ambuja Cements Ltd,Bharat Heavy Electricals Ltd,Bharat Petroleum Corporation Ltd,Bharti Airtel Ltd,Cairn India Ltd,Cipla Ltd,DLF Ltd,GAIL (India) Ltd,Grasim Industries Ltd,HCL Technologies Ltd,HDFC Bank Ltd,Hero Honda Motors Ltd,Hindalco Industries Ltd,Hindustan Unilever Ltd,Housing Development Finance Corporation Ltd,I T C Ltd,ICICI Bank Ltd,Idea Cellular Ltd,Infosys Technologies Ltd,Larsen & Toubro Ltd,Mahindra & Mahindra Ltd,Maruti Suzuki India Ltd,NTPC Ltd,National Aluminium Co. Ltd,Oil & Natural Gas Corporation Ltd,Power Grid Corporation of India Ltd,Punjab National Bank,Ranbaxy Laboratories Ltd,Reliance Communications Ltd,Reliance Industries Ltd,Reliance Infrastructure Ltd,Reliance Petroleum Ltd,Reliance Power Ltd,Satyam Computer Services Ltd,Siemens Ltd,State Bank of India,Steel Authority of India Ltd,Sterlite Industries (India) Ltd,Sun Pharmaceutical Industries Ltd,Suzlon Energy Ltd,Tata Communications Ltd,Tata Consultancy Services Ltd,Tata Motors Ltd,Tata Power Co. Ltd,Tata Steel Ltd,Unitech Ltd,Wipro Ltd,Zee Entertainment Enterprises Ltd.)
Bull
Bull in market is refered to a person who is optimistic about the market and buys a stock first at lower level and sells it at upper level , for instance if a bull buys a company's share at Rs 100, s/he would prefer selling the same stock at Rs 120 or any price higher than Rs 100 to make a profit so when ever the market goes up it is always said that it was a day of bulls in the market because a bull will buy stock and if their is a majority of buyers in the market then the market will go up.

Bear
Bear in market is refered to a person who is pessimistic about the market and sells a stock first at higher level and buys it at upper level so one can say it is entirely opposite to that of bull.The best way to invest in the stock market If a bear sells first, say 100 shares of Ranbaxy at Rs 400, and later purchases the same number of shares at Rs 375, then her/his profit is Rs 25 (400-375) per share. This way s/he has got back the 100 shares of Ranbaxy and simultaneously made a profit of Rs 2500.So when ever the market goes down it is always said that it was a day of bears in the market because a bear will sell stock and if their is a majority of sellers in the market then the market will go down.

Square off
Square off in the market means that you have completed your transaction i.e If you have bought shares in the morning during market oppening or after and have sold it before market closes or at close you have squared of your position for example If you purchase 50 shares of say Infosys and sell them later before the market closes then you have squared off your buy position.
Similarly, if you sell 100 shares of Maruti and purchase them later then you have squared off your sell position.Our indian market rules allow the investors to do day trading day trading is a mechanisim in which a person can buy a stock upto 8-10 times his capacity or the money he/she has and sell it before the market closes and vice-versa.

Opening and closing of our markets
Our markets remains open from 9:55 am to 3:30 pm and also their are some days called as sun outages when satellites fail to link with ground infrastructure of the two exchanges (the servers where buy and sell orders are matched). During these times the trading period is extended till 4:15 pm to compensate for the time lost in between.

Correction
Correction in the markets means that when ever a market has gone up continuously it needs to come down and it comes down with correction for example if market has gone up continuously from 10000 to 12000 in three days it will come down to 11600 on the next day and this shave off is called as correction It is considered good for markets according to the experts because in this phase the market goes from week hands to strong hands.Like human beings the market too needs to take rest after a smart rally.

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The most important thing for an investor is that he/she should know which stock to buy and which stock not to buy. For buying a stock for long term one should keep these factors in mind.
1)The stock should be quality stock and not momentum stock.
2)The sector to which the stock belongs should have growth and good future prospects.
3)The stock should be less prone to currency fluctuations.
4)P/E ratio of the stock should be as low as possible for mid caps it should be b/w 5 to 10 and for large caps it should be 10-15.
5)Avoid small caps for long term investment.
6)Check company financials thoroughly.
7)Check if the stock is held with any mutual fund ,it is considered good for stock.

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FIIS are the persons that are the biggest players of our Indian stock market they are the soul manupulators and gainers of this facinating game of money, FIIS are the representatives of the big institutions placed outside of India you can take an egsample of a bank situated in USA they come to countries with high opportunities and growing economy no doubt they are experts in investment and they know when to invest and how to invest so when you see a stock going up by 20-30% in a span of 1-2 days its the FIIS which are making these moves.How they do this? Its simple they have money they start buying stock in bulk and it goes up and when other people or local investors they start buying that stock looking at the momemntum FIIS sell the stock and in this way the local investor losses money and FIIS they make money.

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1) Buy when every1 is selling, Sell when every1 is buying.
2) Buy quality stocks, and not momentum stocks. Quality stocks will always survive. Momentum stocks move too fast and crash even faster. Once crashed they may never recover.
3) Never invest the money you may need urgently. (As a rule of thumb, keep at least three months' salary in cash, and DON'T even think of investing it).
4) Invest Systematically. Don't spend all you have at one go.
5) Markets go UP, Markets go DOWN. It's just the cyclic movement. So, don't panic (but ensure that you follow the 2nd rule).
6) Diversify your invesment. But don't end up having too many buskets and less eggs (Too many sectors and less shares in each sector).
7) There's 2 ways of earning in stock market. Time the Market, and Time in Market.Even Warren Buffet admits he cannot time the market; so it's highly unrealistic to outperform the best investor in the world. So, let your shares spend time in the market. There's hardly any shorcut.My own addition to these rules (from Rich Dad Poor Dad :) ) - Invest in a company you'd like to own.These are very basic rules of investment (sounds like very boring GYAN though). Don't panic. Plan and invest systematically.

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The very first sale of stocks to the public is called an initial public offering (IPO), and occurs on the primary market. So you can track the market in real time, analyze trends as they happen, and take action when the time is right. You'll also find a wide range of investing products and services to help you plan toward financial independence — however you define it. Corporations sell stock to the public as one way to raise capital. Before it can issue new stock, a corporation must first file registration statements with the Stock Exchange Board of India (SEBI).The Process of Issuing Securities Corporations sell stock to the public as one way to raise capital. A twenty day wait is required before it can sell the stocks. The issuing company may make their registration statement public with a preliminary prospectus called a red herring that summarizes the registration statement. Basic information about the new offering is also provided, including how many shares are being offered and which brokerage companies will distribute the stock to the public. At the time of issue, a final prospectus is presented. This includes the price of the stock (its offering price).So after the IPO is in the market it is open to the public for some days usually 3-5 days people subscribe to this IPO through brokers. Brokers are the persons which have license to buy and sell shares so they buy and sell shares on behalf of their clients .So there is one thing to keep a note here that ones a company has issued the shares to public for raising capital the company is out of the process of secondary market where every day buying and selling occurs this buying and selling is done by the investors and traders through brokers ,buying leads to market going up and selling leads to market going down.

What Broker-Dealers Are Not Allowed to Do
The following are practices that broker-dealers are forbidden to do:
Churning: Excessive trading of a client's discretionary account to increase
the broker's commissions ,use deception or manipulation to trade securities, or failing to state material facts Recommending low-priced, speculative securities without determining whether they are suitable for the client Make unauthorized transactions ,guarantee that loss will not occur Try to talk clients into buying mutual funds inappropriate for their means and goals Use fictitious accounts to disguise trades, not promptly transmitting the client's money or securities Because brokers have so much control over other people's money, their activities are highly regulated. Other Broker Services Brokers, when authorized by the client, may set up discretionary accounts. These accounts allow brokers to buy and sell securities for a client's account without contacting the client for each transaction. The authorized broker may determine the security traded, how much of it may be traded, the price and the time of transaction. Brokers may lend funds to clients who have margin accounts. With margin accounts, clients can buy additional securities with money borrowed from a broker.

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