Equity Market
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Equity Market
Equity market is a place where stocks and shares of companies are traded. The equities that are traded in an equity market are either over the counter or at stock exchanges. Often called as stock market or share market, an equity market allows sellers and buyers to deal in equity or shares in the same platform.
First things first, it is important to begin with a good understanding of what is equity market in the Indian context. Equity market, often called as stock market or share market, is a place where shares of companies or entities are traded. The market allows sellers and buyers to deal in equity or shares in the same platform.
In the global context, equities are traded either over the counter or at stock exchanges. There are multiple buyers and sellers of the same equity/share. Hence, you stand a good chance to strike a nice deal at the equity market. If you want to begin online equity trading in India, you have to get a demat account. Open a demat account in simple steps.
How Can I Trade In Equity ?
To trade in equity share market, you will need to have the proper tools – open a demat and trading account, have funds to buy stocks and a good broker platform to execute the trades. Thanks to technological advancements, you can do online equity trading, at your home, office or even while on the move.
To begin trading, you need to select the right stocks. Follow the live equity market to some worthy stock ideas and do some research. This will help you fine-tune equity market growth & investment strategies.
What Are the Pros & Cons of Trading In Equity Market?
There are advantages and disadvantages to trading equity market. The outcome of any situation is dependent on the way we behave. Let us look at the benefits first.
Pros
Great wealth creation
The biggest benefit of the equity market is the opportunity to make huge profit. Many investors have experienced big returns that can never be given by any other financial investment.
Enter and exit easily
In case of equity market, you can easily enter and exit a stock. This should be compared to when you want to sell a house, where you cannot sell it on your own will always.
Lower taxes
When an equity is sold for profit after holding for more than 1 year, the profit attracts 10% tax. In case of fixed deposits, the tax rate is as per the individual’s tax rate i.e up to 30%.
Cons
Lack of understanding can be costly
If you do not properly do research or invest in bad stocks, your chances of making losses are high in a equity market live type situation. So, be careful.
Equity market can be volatile
Equity investment return does not move in a straight line. There are upswings and downswings in the live equity market.
There is risk of capital erosion
Equity share trading involves a chance of capital erosion
