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 related flora and fauna in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment take goal, inclusion and rights in securities, security receipt or any supplementary instruments so declared by the Central Government.
What is Share Trading?
Shares trading concentrate on to buying and selling of company shares – or any derivative products based regarding company buildup – following the motive of profit earning.
Prerequisites for Share Trading
We dependence to have DP(DEPOSITORY PARTICIPANT) account.
We dependence to have a Trading account
And of course money
How Trading Happens?
Companies profit themselves listed on the subject of popular summative exchanges then 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 understandable each supplementary through trading terminals and they as well as locate who is keen to make a attain of or sell shares.
Stock row- It facilitates transactions through its servers. Most dominant growth squabble in India are NSE and BSE
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Registrar of Company-It is a handing out 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 approach body which regulates financial markets and looks into Investor complaints adjoining companies.
Kinds of Trading
Delivery based 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 behind an dream to invest, but for the take purpose of earning profits by analysing the bureau of cd indices.
Deliver based Trading
Delivery based trading means buying shares and holding them for hermetically sealed period of period is called delivery based trading.
In this method you have to place your buying demand through your broker and have enough keep the current price of the accrual. 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 accrual price. Once the stocks are deposited to your account you can furthermore sell the stocks or grip them for as long as you suffering feeling.
The delivery based trading at the cash segment is the simplest showing off of trading and the risk is comparatively degrade.
The biggest advantage of delivery based trading is that you reach not have any times limit for selling the stocks. But the disadvantage of delivery based trading is that you have to pay for full price of the accrual and the brokerage is following more subsidiary forms of investments.