Equity Trading in India – An Overview

Equity is primarily the ownership in any kind of assets after all the debts related to it are paid off. Any asset that has no outstanding debt associated with is the equity of the owner. A purely financial resource, equity is what a person owns that can be converted into cash. Shares are a form of equity and equity trading is the transaction of company shares. The buying and selling of company stock shares is predominantly known as equity trading. Equity trading roots out debt trading and usually finds its identity in public markets, both domestic and overseas. Equity and stock trading are often used alternatively.

An equity trading is quite similar to stock trading where the trade can be placed by owner of the shares, through a brokerage account, or through an agent or broker. But the primary difference between equity trading and stock trading is the way they are invested and their management firms. With technology getting fiercer with time, equity trading procedures are also carried out more technically. These days, equity trading now goes through electronic matching of buying and selling orders. Also, in other terms equity trading is also referred to warrants, options and convertible preferred stock. They can either be traded on a long term basis or short term period.

There are various kinds of equity that all investment or financial fanatics must take note on, in order to get a clear overview of how to go about them, in order to play safe!

• A common stock or ordinary share is the most prevalent kind of equity investment. Common stocks owner are benefitted if the business accrues profit and get their share once the stake holders and the creditors are paid off.
• A preferred stock or preference share is more or less like bond stocks that offer specific payments on specific dates. In most cases, investors prefer preferred stocks because there are tax advantages associated with it.
• Convertible preferred stocks are quite similar to convertible bonds that can be converted into common stocks under certain specified conditions, sometimes at a given price or a time period.
• Warrants is a way to offer the owner to buy a firm’s common stock during a specific time period at a given price which is usually called the exercise price or strike price.
• Issuing shares or freely traded shares are owned by an individual; investors like partners or enterprise capitalists or established firms.

Visit for more information about :– National Stock Exchange & Bombay Stock Exchange

Investment Blunders BEWARE

While you earn, you make investment plans along the way. However, you got to be a tad prudent before investing your money in the right places. Financial consulting services are a safe bet to know the right routes of investment corridors. Just in case you are planning to take the leap alone, here are few blunders that you must avoid in order to have a watched investment decision.

Here you go:

• Don’t put all your eggs in one basket. Investing all your moolah in one place isn’t really a wise finance decision. Why? Simple logic, if something goes wrong, you lose all your funds. Convinced?
• Another investment faux pas that you should watch out for is purchasing stocks before their ex dividend date and selling them after the dividend is received.
• Number based analysis can often be misleading, hence putting too much of focus on them can result in yet another flub. In such cases, if you are willing, financial consulting services are of great help.
• One of the major investment mistakes that people commit is to start investing before they are ready for the procedures. Use your funds for investment purpose once you are clear with your debts and ready to invest.
• You must be aware of the risks involved in the ways of investment. Make a plan before you start investing your money. An online financial consultant advice is always a good deal.
• Refrain from selling out a valuable stock too quickly.
• Don’t put your blind trust on your brokers. Trust, but verify!
• Don’t invest in things that you don’t have information or acumen about.
• Being super confident despite futile attempts.

Visit for more information about:– http://smifssecurities.blogspot.com

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