Who can open an online trading account?
Anyone who has knowledge of stock trading not necessarily of technical and fundamental.
What is the Stock Market?
A stock market, equity market or share market is the aggregation of buyers and sellers of stocks, which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately.
What is a stock exchange?
A stock exchange, securities exchange or bourse, is a facility where stock brokers and traders can buy and sell securities, such as shares of stock and bonds and other financial instruments.
What is a share?
Shares are the smallest unit of ownership in any enterprise that provides proportional distribution of any profit (if declared) in the form of Dividend. The two main types of shares are common shares and preferred shares. Preferred shareholders have a bigger claim on a company’s earnings and assets. Also, they get preference over common shareholders when dividends are distributed. Generally, a dividend for preference shareholders is more than that for the common shareholders. Earlier, shares were issued in physical format. However, now physical paper stock certificates have been replaced with an electronic recording of stock shares, just as mutual fund shares are recorded electronically.
Why do companies issue shares?
Companies issue shares to meet their financial requirements for expansion of business and other purposes. By issuing the shares the company gets funds from public and other financial institutions. In return of investment, shareholder gets ownership of the company in the form of share.
Why do people buy shares?
The main reason people invest in the common stock is for capital appreciation. They want their money to grow in value over time. An investor in common stock hopes to buy the stock at a low price and sell it at a higher price at some point in the future.
How many ways can we trade in the market?
Intraday trading: In intraday trading, the position must be squared-off on the same day on which it’s created.
Positional Trading/Investing: In positional trading/investment, the trader/investor carry the trade overnight. He can hold the trade/investment for a couple of days or stay invested for long period.
What is Volume?
In capital markets, volume, or trading volume, is the amount (total number) of a security (or a given set of securities, or an entire market) that was traded during a given period of time.