What is Demat account and Equity Trading

Read More About Accounting

What is Equity

Equity is financial instrument by which company invites the public to invest their money in the company and investor can become a partner of the company. Generally, when the company have insufficient money to expand its business it comes with equity shares.

What is Equity Market

The market in which shares are issued and traded, either through exchanges or over-the-counter markets. Also known as the stock market, it is one of the most vital area of a market economy because it gives companies access to capital and investors a slice of ownership in a company with the potential to realize gains based on its future performance.

This market can be split into two main sectors: the primary and secondary market

The primary market is where new issues are first offered. Any subsequent trading takes place in the secondary market.

What is Equity Trading

Equity trading is the buying and selling of company stock shares. Shares in large publicly-traded companies are bought and sold through one of the major stock exchanges, which serve as auctions managed for trades. Stock shares in smaller public companies are bought and sold in over-the-counter market.

Equity trading can be performed by the owner of the shares, or by an agent authorized to buy and sell on behalf of the share's owner. Proprietary trading or principal trading is buying and selling for the trader's own profit or loss. In this case, the principal is the owner of the shares. Agency trading is buying and selling by an agent, usually a stock broker, on behalf of a client. Agents are paid a commission for performing the trade.

What is Demat account

Demat refers to a dematerialised account.
Though the company is under obligation to offer the securities in both physical and demat mode, you have the choice to receive the securities in either mode.
If you wish to have securities in demat mode, you need to indicate the name of the depository and also of the depository participant with whom you have depository account in your application.

It is, however desirable that you hold securities in demat form as physical securities carry the risk of being fake, forged or stolen.

Article Source: http://depositarticles.com/

peterjhonson have a writing experience of several years, won many awards on writing. Currently he is working as a team leader in a reputed MNC. peterjhonson providing Investment advisor ,Equity investment and Depository

Please Rate this Article

Not yet Rated

Click the XML Icon Above to Receive Accounting Articles Via RSS!

Additional Articles From - Home | Accounting

Finding A Suitable Chartered Accountant in Sydney - By : Alex Lynskey
Essential Elements of an Invoice - By : Chris Cornell
The Paramount 10 Steps To Starting An Enterprise - By :
University Professors Rank High in Public Estimation - By : endeavor03
Helping your savings work for you - By : Katharina Beath
How to Use an Analytical Balance - By : Mel Joelle
Edges of Retail Accounting - By : noina nanoi
A Profession in Accounting: Points on How You Will be Successful - By : noina nanoi
Australian Accountants - By : Tal gur2

Our other websites
All about SEO
Beauty Tips Forum

	Print This Article
	Post Comment
	Add To Favorites
	Email to Friends
	Ezine Ready

Submit Articles
Member Login
Link Us
Submission Guidelines
Ezine Notifications
Article RSS Feeds
Sitemap

New Stuff
About Us
Developer
Good shopping portal
Link to Us
Contact Us
Privacy Policy
Terms of Service