Equity Trading or Trading on Equity
comes into the picture when a company or such commercial organization decides
to explore its preferred stocks so that they could get some encouraging profits
on the common shares. It is used to increase their income on the common stocks
or shares. It can be done only when the return of that company or commercial
organization is higher in comparison to the rate of interest on their borrowed
capital. The equities presented or offered by the owners make the creditors
convinced to give them finances. This special trait found in this type of
trading has given it the name of Equity Trading. Equity Trading in India works on this principle like anywhere else.
It gets operated through the trade markets which eventually get controlled by
the two stock exchanges namely Bombay Stock Exchange and National Stock
Exchange. These two exchanges or everything in connection to the trade markets
and its operations get strictly controlled, monitored and regulated by the SEBI
or Stock Exchange Board of India.
Thursday, 28 August 2014
Effective Equity Trading in India
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