MarketLearn

Simulations

Every simulation uses hypothetical numbers. Their purpose is to make a concept concrete — not to predict anything about real markets.

Where does your money go?

A salary is not a single number — it is a set of choices. Move the sliders to allocate ₹

₹50,000
₹30,000
₹10,000
₹10,000
Expenses 60%Savings 20%Investments 20%Unallocated 0%

Allocated

₹50,000

100% of income

Still unallocated

₹0

Money that is spent is gone. Money kept as cash is safe but idle. Money invested is put to work — and carries risk. This lesson is about the categories, not about picking one.

Saving vs Investing

Split a lump sum between cash and a hypothetical investment, then see how time changes the picture.

₹1,00,000
₹60,000
10
12

Cash kept in hand today

₹40,000

Grows at an assumed 3% p.a.

Invested portion today

₹60,000

Assumed 12% p.a.

Difference after 10 years

₹1,32,594

Invested value minus cash value (if both assumptions held)

This is a hypothetical illustration, not a forecast. Real investments do not grow in a smooth line — they rise and fall, and can lose value. The point is the concept of compounding, and the trade-off between certainty and potential growth.

Explore the main categories of investments

Select a category to understand what it is, where returns come from, and what risks it carries.

Stocks (Equity)

A small ownership stake in a company. You share in its profits and its problems.

Ownership
Yes — partial owner
Return source
Price change + dividends
Typical risk
Higher, can be volatile
Liquidity
High on listed exchanges
These categories differ in how they generate a return and what risk they carry. Nothing here recommends one over another — understanding the categories is the goal.

How a business turns into something you can own

Step through the journey from a founder's idea to a tradable share.

Step 1 of 5: Founders

One or more people have an idea and put in their own money and time to start the business.

FoundersThe BusinessNeeds CapitalInvestorsOwnership
A share is simply a unit of ownership. Everything else in this course builds on that one idea.

Company Ownership Simulator

Change the company's value, the total number of shares, and how many you own. Watch what happens to your slice.

100
1 Cr
0.1 Cr
Your ownershipOther shareholders

Your ownership

10%

Theoretical value of your stake

₹10 Cr

Company value × your ownership %

Implied price per share

₹100

Company value ÷ total shares

Ownership is about proportion, not price. Owning 5% of a company is the same 5% whether the company is worth ₹100 crore or ₹1,000 crore — what changes is the value of that slice.

A market is just buyers and sellers meeting

A buyer names the highest price they'll pay (the bid). A seller names the lowest price they'll accept (the ask).

Buyer

100
meet

Seller

102

Bid (best buyer)

₹100

Ask (best seller)

₹102

Spread

₹2

No trade yet

When a bid meets or crosses an ask, a trade happens. The spread — the gap between the best bid and best ask — is a measure of how easy it is to trade.

Supply, demand and price pressure

Prices move when the balance between willing buyers and willing sellers shifts. Explore how each side affects that balance.

120
80
60
40
Selling pressureBalancedBuying pressure
Supply score 32Upward pressureDemand score 72

Net pressure

+38.5%

Upward pressure

Strength of the tilt

38 / 100

How far the marker sits from the centre

This is a conceptual model of pressure, not a price predictor. Real prices also depend on news, expectations, earnings, interest rates and much more — which is why this lesson is about understanding the forces, not forecasting them.

Order book simulator

See how a hypothetical order would be filled against the resting buy and sell orders.

Sellers (asks)

PriceQuantity
₹105500
₹104300
₹103200
Spread₹1

Buyers (bids)

PriceQuantity
₹102400
₹101700
₹100900

Place a hypothetical order

500

Filled quantity

500 shares

Average fill price

₹104

Unfilled

0 shares

Fill breakdown

  • 200 @ ₹103
  • 300 @ ₹104
This is an educational simulation with a fixed, made-up order book. A market order prioritises getting filled; a limit order prioritises price and may only fill partially — or not at all.

Market Capitalisation Simulator

Market cap is the market's current price tag for the whole company.

500
10

Market Cap

₹5,000 Cr

500 × 10 crore shares

Notice that price alone says nothing about size — a ₹10,000 share with only 1 lakh shares is a smaller company than a ₹100 share with 50 crore shares.

IPO simulator

A company raises money by selling new shares to the public at a fixed issue price.

100
1 Cr
3×
500

Issue price per share

₹100

Capital wanted ÷ shares offered

Total demand

300 Cr shares

Subscription: 3×

Your expected allotment

166 shares

Oversubscribed 3×, so allotment is scaled back

An IPO moves money into the company — this is the primary market. Once the shares list and trade between investors, that is the secondary market.

Terminology explorer

Tap any term to see a plain-English explanation.

Share

One unit of ownership in a company.

If a company has 1 crore shares and you own 1 lakh of them, you own 1% of the company.

Every term here also appears in the searchable Glossary.

The three statements are one story

Each statement answers a different question — together they describe the whole business.

Income statement

  • Covers a period of time (e.g. a quarter or a year).
  • Starts with revenue and subtracts costs step by step.
  • Ends at net profit — which flows into retained earnings on the balance sheet.
Net profitRetained earnings (equity)Cash flow reconciliation
A single statement in isolation can mislead. Read the three together and they cross-check each other.

Build an income statement

Change any input and watch the whole statement — and every margin — recalculate.

1,000
400
200
100
50
25
Line item₹ crore
Revenue1,000
Cost of goods / services-400
Gross profitRevenue − COGS600
Operating expenses-200
EBITDAGross profit − Opex400
Depreciation & amortisation-100
EBIT (operating profit)EBITDA − D&A300
Interest-50
Profit before tax250
Tax @ 25%-62.5
Net profit187.5

Gross margin

60%

EBITDA margin

40%

Operating margin

30%

Net margin

18.8%

Notice how each layer subtracts a different kind of cost. A company can be profitable at the operating level yet lose money at the net level once interest and tax are paid.

Balance sheet builder

Assets must always equal liabilities plus equity. Move the sliders and try to keep it balanced.

Assets

150
200
150
500

Liabilities & equity

300
100
100
500

Total assets

₹1,000 Cr

Liabilities + equity

₹1,000 Cr

Balanced

✓ Balanced

The accounting equation — Assets = Liabilities + Equity — is not a rule companies may choose to follow. It is what the terms mean. A sheet that does not balance is not a real statement; it signals an error or an omission.

Cash flow explorer

Profit is an opinion; cash is a fact. See how the three cash flow sections combine.

300
120
-50
100
-40
150
Operating activities

+₹300 Cr

Cash from the everyday running of the business — selling goods, paying suppliers and staff.

Investing activities

−₹170 Cr

Cash used to buy or sell long-term assets and investments — like building a factory.

Financing activities

+₹60 Cr

Cash from or returned to lenders and shareholders — debt, equity, dividends.

Opening cash

₹150 Cr

Net change in cash

+₹190 Cr

Closing cash

₹340 Cr

A business can be profitable on paper yet run short of cash — for example if customers pay late, or if it has spent heavily on new equipment. This is why the cash flow statement matters alongside the income statement.

Why profit and cash flow differ

Sell on credit and you can record revenue now while the cash arrives much later.

800
40
500
80

Accounting view

₹220 Cr

Revenue 800 − expenses 580

Profit is recorded as soon as the sale is made, whether or not cash has arrived.

Cash view

₹-180 Cr

Collected 320 − paid 500

Depreciation is subtracted from profit, but no cash actually left the business.

Difference between profit and cash

₹400 Cr

Stuck in receivables

₹480 Cr

Sales recorded but not yet collected

Profit is recorded when the sale happens (accrual accounting). Cash is recorded when money actually moves. Neither is “wrong” — but a business survives on cash, so the gap between the two deserves attention.

Margin waterfall

Follow revenue down through every cost to reach net profit, and see each margin form.

1,000
400
200
100
50
25
Revenue1,000

The top line

Cost of goods / services−400
Gross profit600

60% gross margin

Operating expenses−200
EBITDA400

40% EBITDA margin

Depreciation−100
EBIT (operating profit)300

30% operating margin

Interest−50
Tax−62.5
Net profit187.5

18.8% net margin

Gross margin

60%

EBITDA margin

40%

Operating margin

30%

Net margin

18.8%

Margins are best compared with the company's own history and with close competitors. A 5% net margin is excellent in some industries and poor in others, so cross-industry comparisons mislead.

Working capital simulator

Working capital is the money tied up in the day-to-day running of a business.

200
150
120
Money tied up in the business₹350 Cr
Funded by suppliers (payables)₹120 Cr

Working capital

₹230 Cr

Interpretation

Cash tied up

Receivables + inventory − payables

A business that ties up a lot of cash in receivables and inventory needs funding to bridge the gap. A business that collects quickly (and pays suppliers slowly) needs less.

Corporate action simulator

See the conceptual before-and-after of the actions companies take that affect their shares.

100
1,000
1
2

Before

  • 100 shares
  • ₹1,000 per share
  • Total ₹1,00,000

Conceptually after

  • 200 shares
  • ₹500 per share
  • Total ≈ ₹1,00,000
These illustrations show the conceptual mechanics. They do not imply any particular price will occur — actual market prices reflect everything else happening too.