What are shares?
It’s a means to own a company.
The definition of ‘Securities’ as per the Securities Contracts Regulation Act (SCRA), 1956, includes instruments such as shares, bonds, stocks or new marketable securities of same nature in or of any incorporate company or body corporate, dealing out securities, derivatives of securities, units of sum investment plot, union and rights in securities, security receipt or any added instruments consequently avowed by the Central Government. For more info loan for commodities.
What is Share Trading?
Shares trading talk to to buying and selling of company shares – or any derivative products based concerning company growth – in the name of the motive of profit earning.
Prerequisites for Share Trading
We mannerism to have DP(DEPOSITORY PARTICIPANT) account.
We mannerism to have a Trading account
And of course maintenance
How Trading Happens?
Companies profit themselves listed on popular entire quantity exchanges subsequent to NSE, BSE
Interested traders using terminal provided by their brokers trade concerning the subject of those shares.
Online Trading participants
Investor- Participates through website of brokerage using internet and computer.
Brokers- they entre each subsidiary through trading terminals and they with locate who is vivacious to get or sell shares.
Stock dispute- It facilitates transactions through its servers. Most dominant add taking place row in India are NSE and BSE
Registrar of Company-It is a admin body that maintains archives of all shareholders and updates database changes whenever ownership changes.
Depositories- It includes depository participants which stores shares in electronic format.
SEBI (Securities Exchange Board of India)- SEBI is a supervision body which regulates financial markets and looks into Investor complaints adjoining companies.
Kinds of Trading
Intraday trading
Delivery based trading
Intraday Trading
Intraday trading includes buying and selling of stocks within the thesame trading hours of daylight. The stocks purchased in this nice of trading, are not purchased subsequent to an plan to invest, but for the aspiration of earning profits by analysing the doings of put in indices.
Deliver based Trading
Delivery based trading means buying shares and holding them for determined times of era is called delivery based trading.
In this method you have to place your buying demand through your broker and pay for the current price of the compilation. Once your demand is executed the stocks that you have bought are deposited to your DP account. In this process you have to pay the full amount of the accrual price. Once the stocks are deposited to your account you can with sell the stocks or sticking to them for as long as you tortured feeling.