EQUITY MARKET

                An Equity Market is a market in which the shares of companies are issued and we can trade, over the markets. If we buy shares or stocks, we will become part of the owner of a company. Firstly people think they are investing in stocks, it's wrong. We are investing in a company and we should analyze the company whether it is fundamentally strong. So the Equity market is we can buy and sell shares or stocks.



BENEFITS  AND CONDITIONS OF THE EQUITY MARKET


  • There is no limit to buying and selling in the equity market.
  • No expiry date for buying and selling.
  • We must buy stock with full cash transactions.
  • It is our Asset. If we buy a stock it becomes our asset.
  • Additional benefits  
  1. Dividends
  2. Bonus 

WHAT IS A DIVIDEND?

             A dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks, or any other form. A company’s dividend is decided by its board of directors and it requires the shareholders’ approval. However, it is not obligatory for a company to pay dividends. A dividend is usually a part of the profit that the company shares with its shareholders.

Example:
                If we buy 1000 shares in ITC company. Each share of 10 dividends means we will get 10000 dividends in 3 months and 40000 dividends per year. it"s just an example.

WHAT IS A BONUS?

               Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. These are company's accumulated earnings that are not given out in the form of dividends but are converted into free shares. 

Example:
            If we bought 1000 shares means they will give us some bonus shares



IMPORTANT NOTES IN THE EQUITY MARKET

  • The seller comes first in the Market
  • NSE has 1600 companies and they are big companies
  • BSE has 5500 companies and they are small companies
  • NSE is a huge buying and selling volume
  • BSE is low volume for buying and selling
  • Market Timing: 9:15 AM to 3:15 PM
  • In case we are selling the stocks means we should close the trade within a day which means 3:15 PM
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