Equity

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Today’s generation is hand wired with instant gratification- an urge to get immediate results. Trading in equity market can be considered as a balm of relief. A stage where companies raise the needed capital and traders get an opportunity to trade on shares, this complete scenario is referred to as equity market. Traders are supporting characters in the theatre and companies are the financers of the play. Basically, trade is carried out on the basis of point of view or notions of the traders about the fluctuations in stock prices. Stock prices get fluctuated every next second. There are many variants that cause this wavering. Among these, monetary policy, inflation, budget,etc are quite popular.


Equity market is broadly flavoured in 3 layers namely, stock cash, stock futures and stock options. Futures and options form another firm namely, derivative in unison. Trading via contracts is the key feature of derivatives and both, buy and sell positions can be holded till the date of expiry of the contract. Cash market demands immediate full payment on the purchase of shares whereas in derivatives, one pays a minimal amount to carry out trading in virtual market, known as margin.


NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are two major stock exchanges in India, regulated by a central government body- SEBI (Securities and Exchange Board of India). Equity market is a platform where many parties and entities collaborately work to carry out buying and selling of shares. These include banks, stock brokers, depositories, clients, etc.

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