How to start equity (share) trading

How to start equity (share) trading

For buying and selling of equity share investor need

some few thing at first investor need to apply for a

demat account where equity share will be deposited

in electronic form so you can deposit your buying stock.

For buying and selling your share in stock market investor

 need to open a trading account with a registered broker

 by SEBI  and exchange member too. a bank account also

 necessary for trading from which deposit and issue fund

 by chaque.

Investor need to discuss his brokerage with broker at

begin and also bargain for it. choose your brokerage plan

 as you wish to trade in stock market.

WHAT IS EQUITY

WHAT IS EQUITY

Definition of equity in simple way is to acquire equity share of a company is just ownership in that company significantly to the extant of share that investor acquired.

For example if any company issue capital of 5 lac share and someone holding 1000 share it mean investor ownership in the company is 0.20 percent.

how investor get return from equity.

Long term as company growth from business to the company as company posting good result your holding share price will also grow by time so investor get return of his investment growth,secondly as company posting good financial number as appreciation in profit companies partly distributed some payment to investor in sense of dividend for example if company announce 30% dividend on 10 rs. face value equity share mean an investor get 3 rs. per share as dividend multiply to his holding equity share.also some good companies also gave bonus share in ratio as company reserve grown up ,bonus share mean investor get free equity share in ratio which declared by company for each equity share held by investor.

Over past few year record prove for long term investor who invested in good companies with good management gave more appreciation then gold and fixed deposit.

It looks investment inequity always be health full to investor who look for long term scenario it may be harm full in case of short term if it invested in wrong time.

Question here is which is best time to invest in equity as well in which company good,in both case first buy when market goes down sharply and everyone is selling and secondly invest in company which have good track record and manufacturing division whose demand always be in market .

Also manage a self portfolio to diversified in sector wise so if sometime single sector not perform well then other grow your portfolio.

Investor must watch price movement of company in which he want to invest and read company profile and work before investing for at least one month time.

 image source: beingwarenbuffet.com

CAPITALMARKET

WHAT IS A CAPITAL MARKET

capital market is a market for instrument like (debt or equity), where companies and governments can raise long-term funds by sharing there capital portfolio.  capital market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets . The capital market includes the stock market and the bond market, Financial regulators, sebi(securities and exchange board of india) oversee the capital markets in  jurisdictions to ensure that investors are protected against fraud and secure market regulation
Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere

In india twocapital market people known as stock market national stock exhchange(NSE) and Bombay stock exchange(BSE) working. In bse all Indian companies listed and traded but few listed in Nse india but in investor more fancy stock exchange for trading is nse because of volume and derivative trading in Nse india only ,most investor known as nifty trading as in future and option trade also,both exchange working under regulation conducted by SEBI and time to time SEBI issue guideline to stock exchange for clean operation of trading  

Forthcoming Ipo

Few companies files DRHP with SEBI for Ipo






1   Sai Silks (Kalamandir) 


2    ACB (India) 


3    SKIL Infrastructure 


4    Madhya Bharat Agro Products


5    Relcon Infraprojects 


6   Multi Commodity Exchange of India 


7   Prime Retail India 


8   APR Constructions 


9   Speciality Restaurants