Equity FAQ​

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately.

Shares is more specific, referring to how a company’s stock is divided. Owning stock in a corporation means you own a specific number of shares. Equity is also often used to describe ownership in a company. Equity can mean stock or shares, although it’s often used to refer to stock options as well.

Prices of Equity. The amount of money for which one may buy or sell a share of common stock.

The price of equity changes throughout a trading day, especially in times of high trading volume.

Equity Share and its Types. Equity share is a main source of finance for any company giving investors rights to vote, share profits and claim on assets. Various types of equity share capital are authorized, issued, subscribed, paid up, rights, bonus, sweat equity etc.

In the Indian stock market, equities are available for trading at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). An equity market, also known as the stock market, is a platform for trading in company shares. It is the place where buyers and sellers meet to trade in listed companies.

SENSEX or Sensitivity Index is an index of Bombay Stock Exchange. It tells us about the movement in the stock price of the top 30 companies listed on BSE. SENSEX uses weighted average method for price movement calculation. That means each shares price has a weightage proportional to its market capitalization.

The NIFTY 50 index is National Stock Exchange of India’s benchmark broad based stock market index for the Indian equity market. Full form of NIFTY is National Stock Exchange Fifty.

1.Decide whether to go through an online brokerage firm or through a face-to-face broker.

2.After evaluating a stock, decide the prices you’d like to purchase at, so you know whether to make a “market” or “limited” order.

3.To save on broker fees, you can buy some stocks directly from the company.

1.Obtain a PAN card. Mostly everyone, irrespective of being an investor has a PAN card. …

2.Hire a Stockbroker. The stock market is not a place where you can go directly and buy shares with cash.

3.Open a Demat and a Trading account.

4.Bank account.

5.UIN (Unique Identification Number)

6.Buying and selling shares.