Equity Trading

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Equity Trading

Equity trading (also known as Secondary Market Operations) is the term that refers to activity of buying and/or selling of existing equity and/or preference shares, issued by any of the listed public companies, on the platforms of one or more recognised Stock Exchange(s). The two major Stock Exchanges that handle major trading volumes out of total equity trading in India are National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE). By enrolling as a client with group Vishwas Fincap, a client may avail of the opportunity to trade on any of these Stock Exchanges.

FREQUENTLY ASKED QUESTIONS.

An investor may involve himself into Equity Trading for one or more below-listed reasons:?

• Generation of capital gains by making investments for a tenure exceeding one day
• Generation of speculative gains by executing jobbing transactions i.e. the transactions which are squared-up on the same day and
• Procurement of corporate benefits like Dividends, Bonus Shares, Right Shares etc.

Besides others, Equity Trading has following important distinctive features:?

• The possibility and quantum of gains as well as losses that may arise out of equity trading are unlimited
• The holders of equity shares are treated as part owners of the respective companies, for all practical purposes
• Gains arising out of shares which are held for more than 1 year as well as Dividend Incomes are absolutely tax-free
• Gains arising out of shares, which are held for less than 1 year, are & taxed at a highly concessional rate of 15% and
• Equity Trading can legally be done only through a SEBI registered broker/sub-broker