What Is Demat Account And Equity Trading
What is Equity
Equity is financial instrument by which company invites the public to invest their money in the company and investor can become a partner of the company. Generally, when the company have insufficient money to expand its business it comes with equity shares.
What is Equity Market
The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital area of a market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential to realize gains based on its future performance.
This market can be split into two main sectors: the primary and secondary market
The primary market is where new issues are first offered. Any subsequent trading takes place in the secondary market.
What is Equity Trading
Equity trading is the buying and selling of company stock shares. Shares in large publicly-traded companies are bought and sold through one of the major stock exchanges, which serve as auctions managed for trades. Stock shares in smaller public companies are bought and sold in over-the-counter market.
Equity trading can be performed by the owner of the shares, or by an agent authorized to buy and sell on behalf of the share's owner. Proprietary trading or principal trading is buying and selling for the trader's own profit or loss. In this case, the principal is the owner of the shares. Agency trading is buying and selling by an agent, usually a stock broker, on behalf of a client. Agents are paid a commission for performing the trade.
What is Demat account
Demat refers to a dematerialised account.
Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode.
If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application.
It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen.
by: peter jhonson
Overview Of The Blackdog Trading System Some Facts About Strategic Thinking Wholesale Distributors - How To Spot The Phonies Whats In Store For You As A Wholesaler? Aarkstore Enterprise - Footwear Retailers-uk -aarkstore Enterprise Market Research What You Need to Know About Day Trading Five Ways for Retailers to Capitalise on the Summer Holidays Locating The Best Musical Instrument Retailers What Are Wholesale Dropshippers Facebook Advertising a Boon to Retailers Best Wholesale Dropship Supplier What Is A Wholesale Dropship Supplier Strategic Planning For The Real World