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 add-on marketable securities of same flora and fauna in or of any incorporate company or body corporate, handing out securities, derivatives of securities, units of cumulative investment plot, captivation and rights in securities, security receipt or any adding instruments hence confirmed by the Central Government.
What is Share Trading?
Shares trading contract subsequent to to buying and selling of company shares – or any derivative products based behind than reference to the subject of company accrual – subsequent to the motive of profit earning.
Prerequisites for Share Trading
We obsession to have DP(DEPOSITORY PARTICIPANT) account.
We need to have a Trading account
And of course maintenance
How Trading Happens?
Companies get bond of themselves listed approximately speaking skillfully-liked accretion exchanges along with NSE, BSE
Interested traders using terminal provided by their brokers trade upon those shares.
Online Trading participants
Investor- Participates through website of brokerage using internet and computer.
Brokers- they portion each new through trading terminals and they as well as locate who is keen to mitigation or sell shares.
Stock row- It facilitates transactions through its servers. Most dominant amassing dispute in India are NSE and BSE
Registrar of Company-It is a dispensation body that maintains records of all shareholders and updates database changes whenever ownership changes.
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Depositories- It includes depository participants which stores shares in electronic format.
SEBI (Securities Exchange Board of India)- SEBI is a paperwork body which regulates financial markets and looks into Investor complaints neighboring to companies.
Kinds of Trading
Intraday trading
Delivery based trading
Intraday Trading
Intraday trading includes buying and selling of stocks within the similar trading hours of day. The stocks purchased in this available of trading, are not purchased behind an set sights on to invest, but for the take dream of earning profits by analysing the group of accretion indices.
Deliver based Trading
Delivery based trading means buying shares and holding them for unqualified era of become old is called delivery based trading.
In this method you have to area your buying demand through your broker and pay for the current price of the buildup. Once your request 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 accretion price. Once the stocks are deposited to your account you can subsequently sell the stocks or sticking to them for as long as you agonized sensation.