Monday, December 8, 2014

Equity Segment of Indian Stock Market

Equity Segment is one of the most common forms of trading the stocks in Indian Share market. In this segment people buy and sell the stocks through a broker and once the stocks are bought by the investor, stocks are deposited in the DP account of the investor. It depends on the will of the investor, whether he wants to retain that stock or sell at a higher price to book profits. In Equity trading, there no limit of selling or holding the stock, it entirely depends on the will of the investor. But brokerage charges in equity segment are higher than derivative segment. In an investor is looking for good returns without any risk, the best way is to invest in long term.
In equity segment there are two types of trading, intraday and long term. Intraday trading involves buying and selling the stock on the very same day between trading hours. It is more like gambling where there is huge risk as the stock fluctuate randomly making profits and losses. In long term trading, investor buys a share in a good company and then waits for that to give returns. Investors also invest in long term for years and years and get dividends and profits.

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