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Equity Market Basics and Equity Tips Analysis

There are two fundamental types of investments namely bonds and stocks, bonds are written form of investment where person who is lending the money keeps record of amount of money, interest rate, expiry date and all.

Bonds are in a way less risky and also give high interest rate as compared to share buying and selling. On the other hand if we talk about shares which are also equities are like buying a share of a company, this makes you a part of that particular company. You become a part of the profit and loss of the company.

Increasing number of stockbroker Lead to the requirement of a stable stock market exchange and thus first exchange came into existence that is known as the Dalal Streets, it’s the oldest stock exchange in India. Then after there came into the existence Bombay Stock exchange which itself is 130 years old now. National stock exchange that is NSE came into scene when a revolutionary change was seen in the trading styles of the trader. It was in 1993 when NSE was build. Resulting into the birth electronic form of trading.

Equity Market is specifically divided into two parts

Primary Market: it’s the market where a company introduces themselves into the exchange a particular price for earning capital; this in particular is called as Initial public Offer where the issuer is selling its securities for the first time.

Secondary Market: After the introduction of the securities form the primary market now the question comes of the resale. In this market one investor buy or sell the share at a particular price or at a pre-decided price.

Both of these markets are governed by one general body in India which is Security and Exchange Board of India i.e SEBI this body came into existence in the year 1988 the board has become the most important regulatory boards as it keeps an eye on both development and regulations in the market.

SEBI’s main work is to

1)    Protect the interest of the traders and investors while trading in securities.

2)    Regulating the security market.

3)    Developing and promoting the security market.

The board is working upon its two fold mission where the first is to integrate the security market at National level and second is to diversify the trading products to increase the number of traders and transaction through the exchange. A stock exchange is places where traders buy or sell free equity tips shares or securities. A stock which is being listed in the exchange can be bought or sold according to the price range. Analyst analyze the movement of the particular share and come up to the decision of buying or selling of an equity share and this is known as equity tips which help a trader to make a decision of execution of a trade.

 Equity tips are being worked upon once passing all the standardization regulated by SEBI. An exchange is a hub where the stock broker buyers and sellers meet together.