Equity Trading

Equity Trading

Understanding from the basic level, equity or capital market are the platforms via which the corporations raise funds from the common public. They are able to raise capital by selling a part of their company in the form of equity shares. Hence, equity trading is buying and selling of company stock shares to gain from the appreciated share value. The investors chose equity markets for investments because of the advantages like liquidity. Also, the capital markets are capable enough to grow wealth exponentially . There are two types of market available to the investors when it comes to equity trading: (Change this entire paragraph language wise. It is not consistent and is difficult to understand for a layman and also emphasise little bit on transactions)

Equity Trading in India

Majority of the trading volume takes place on either Bombay Stock Exchange (BSE) or National Stock Exchange (NSE). As of today, the number of listed companies on BSE have crossed 5000 mark whereas on NSE the number is around 1800. The unique concept of these Indian exchanges is the fact that there are no market makers and the order matching is done by open electronic limit order book. (Please emphasize on this)

There is prominently one index on both exchanges each which represents the most importance listed companies in the country. On BSE, Sensex is the oldest index which consists of around 30 companies and represents about 47% of the index free-float market capitalization. Whereas on NSE, the index is Nifty, which was created in 1996 and manages to include 50 listed shares.

The Indian equity market is like the gold pot in the making, which every Indian citizen must enjoy. To trade in the Indian capital market, the investor has to open a demat account with registered broker.

Benefits of Equity Trading

Amar and Raj are two friends who have just joined a company and started earning. Amar kept all their savings in the safe fixed deposit while Raj invested in the equity markets. By the end of their first decade, these were the benefits availed by Raj over Amar:

Participation in the growing economy:

The growing GDP eventually leads to the growing equity markets. While India is the developing nation with a decent GDP growth, it’s everybody’s right to take part in the growing economy.

Able to beat inflation:

When invested in the right stocks, one can easily beat the inflation and stay ahead in the long run.

High Liquidity:

As compared to long-term FD or even real estate, entry and exit from the stock market is easier.

Returns and Dividends:

There are two possible ways to earn from the stock investment. One is the classic buy low and sell high method. While the other is earning dividend from the company regularly.

Why trade with FINDOC ?

We are the members of the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and provide depository services through NSDL.

One stop solution for all your equity trading needs ranging from margin trading, delivery trading, intraday trading and BTST.

The platform is well secured and equipped with progressive technology so you can have access to everything required.

You can access our advanced fundamental and technical research on the current market via daily, weekly newsletter updates on our platform.

You can experience trading across devices like a mobile, desktop, tablet with no hassles.

Competitive brokerage available so that you can earn the most from the markets.

There is a special focus on providing real-time exchange rate so that there is no compromise.

Don’t worry if you are stuck somewhere while trading. There is a 24*7 web-enabled back office along with customer service support.

Frequently Asked Questions

What is the difference between stock and equity?

What is the difference between stock and equity?

What is the difference between stock and equity?

Stocks and equity are used interchangeably in the trading area jargon. Equity is the ownership of the assets that may have some sort of liabilities attached to them. It can be the capital invested by the owners in a company. Whereas the term stock refers to the traded equity, it is the ownership share in a company. Investors invest in stocks of companies, which they think might get a hike in the near future.

What is equity trading in India?

The stock market, also known as the equity market is a trading platform where company shares are traded. Buyers and sellers meet at the platform to buy and sell shares of the listed companies. This transaction of equities for investment is called equity trading. The Indian stock market features available equities for trading at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). features

How do I start trading in equity?

To start with your trading account, you first should observe the market trends and try to figure out and shortlist what stock you would like to invest in. You should adopt virtual trading practices by getting dummy accounts. When you are ready, get the trading account in the share market and link your bank account to the same. Start slow and low and then slowly build your portfolio.

What are the four types of stocks?

The different types of stocks include the Growth Stocks, yield stocks, new issues and defensive stocks. Growth Stock includes the shares that you buy for capital growth. The next is the Dividend or the yield stocks which refer to the earnings generated through investment over a period of time. The third one includes the New issues, and the fourth one is termed as a defensive stock which provides rather consistent and stable earnings.

Is it good to invest in equities?

Like all investments, investing in equities has many potential benefits, but involves risk as well. Market risks influence a direct impact on equity investments. Based on market forces, stocks rise and fall in value. So it is quite obvious that the risks are high, and an investor could potentially lose all his/her invested capital due to market risks. Equity investment fetches great returns and is an asset, but the situation should be examined from both ends. One should know equity trading strategies before enrolling in real-time trade.

What is an example of equity?

Equity means a shareholder’s stake in a company. Equity is the ownership of the assets, that may have some sort of liabilities attached to them, can be the capital invested by the owners in a company. For example - if you have a house worth 100,000 dollars and you owe the bank 70,000 dollars, this is an example of having 30,000 equity.

How is equity calculated?

Equity is the ownership of the assets, that may have some sort of liabilities attached to them, can be the capital invested by the owners in a company. The equity of a company can be calculated by subtracting its total liabilities from its total assets or as the total of share capital and retained earnings minus the treasury shares.

How do you get equity?

Equity in terms of trading refers to buying and selling company shares. You generally can buy equities through equity markets where businesses trade it for investment, usually money. Equity trading refers to the same. In terms of assets, it refers to the amount you possess after subtracting the liabilities. You can get equity on the later by making down payment and keeping assets in the mortgage.

Is cash equity?

Cash is not equity; it is an asset. Equity is a degree of ownership of an asset’s value after subtracting the liabilities associated with that particular asset. Simply put, equity is the difference between an asset and its liabilities. Though cash is an asset, the physical shares you buy with cash are called cash equity.

Equity Trading Blogs

Does lower PE ratio means higher profitability?

Equity trading India is filled with individuals who know the price of everything but value for nothing. PE ratio helps us in understanding the value of the stock. You might find a wonderful company but a good buy only makes sense if the price falls in the buying range.    So what is the PE ratio? T....

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Which is a better choice dividends or buyback of shares?

A company rewards its shareholders for equity Investment in its stock mainly in two ways: Dividends and Buybacks of Shares. For illustration, say a company has earned surplus reserves and has no positive growth projects to invest in, where will the funds flow? Under these scenarios in Equity trading India the company ....

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Tips to handle stock market volatility

Stock market volatility is an important idea for all the stock traders to understand the profit or loss in stock trading. By understanding the stocks with the most astounding potential for critical value development, just as how to exchange them ideally, can mean new opportunities.   Here, in this article,we wil....

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Benefits of investing in Equity

Disclaimer The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

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Important Message The information contained in this file is provided for informational purposes only, and should not be construed as legal advice on any matter. The content and interpretation of the law addressed herein is subject to revision. We disclaim all liability in respect to actions taken or not taken based on any or all the contents of this file to the fullest extent permitted by law. Every effort is made to avoid errors. In spite of that, errors and discrepancies may creep in. It is expressly stated that neither Findoc Investmart Private Limited nor any of the contributors of updates will be responsible for any damage to anybody on the basis of this document. Readers are, therefore, requested to cross check with the original sources e.g. Government publications, Orders, Judgments etc., before taking any action or making any decision. These services are being provided through our group companies Findoc Capital Mart Pvt Ltd and Findoc Finvest Private Limited

Attention Investors
  • 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • 2. Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • 3. Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • 4. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries forrefund as the money remains in investor's account."
Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactionsin your demat account directly from NSDLon thesame day.....issued in the interest of investors."

FINDOC INVESTMART PVT. LTD./FINDOC FINVEST PVT LTD.

Registered Office :

SCO 210-211, Sector 34-A Chandigarh-160022

Corporate Office :

4th Floor, Kartar Bhawan, Near PAU Gate No.1, Ferozepur Road Ludhiana -141001.