Understanding What Equity Is

In simple words, equity means the amount of capital you invested in the form of shares in the company. You can get returns based on how the company performance and market conditions. Equity can be traded on stock exchanges based on demand and supply, price fluctuations, and different corporate events. At The Trade Bond, our registered equity research analyst study all these factors to identify the right opportunities for our clients.

Equities are categorized into different groups. 1. Common shares, 2. Preferred Shares.

Common shares give ownership to the investors in the company with voting rights. Which makes them as the most widely traded form of equity.

Preferred Shares can provide more income with the right predictions. Also, they offer fixed dividends. And these preferred shares have very limited or no voting rights.

Based on the company size, equities are categorized as Large-cap, Mid-cap, or Small-cap. These three categories carry stability and potential for growth at different levels. Another way to categorize equities is by sectors like Banking, IT, and FMCG. Which allow investors to focus on different industries based on their performance.

Equity market works as a platform where the companies raise funds and investors buy the shares to have ownership. When a company decides to increase their capital, it will announce shares in the form of IPOs. Once the IPos are listed, these shares are traded on stock exchanges such as BSE and NSE. Here, the prices get influenced by various factors like global events, corporate earnings, and economic news. Traders can track market trends using tools like sector analysis or index-based strategies. This will help to make valuable decisions. Therefore, understanding how technical analysis in equity cash helps traders to time better.

There are two different ways to trade equities that are mentioned below:

Delivery Trading: In fact, delivery trading and equity cash are the same. Here shares are bought and held for more than a day before selling them.
Intraday Trading: Intraday trading is also known as day trading. Here traders can buy and sell stocks within the same day of trading.

To trade in the equity market, you need to have:

• Required a demat account to hold shares.
• A trading account to place buy/sell orders.
• A bank account to make transactions.

At The Trade Bond, we provide market insights in equity intraday tips to help traders to navigate the markets with a structured plan.

Generally equity intraday trading involves buying and selling shares on the same trading day. By using daily price movements to generate short-term gains. In equity intraday trading, traders can take larger positions with small capital. Although positions should need to close before the market closes. Also, this involves very high risk.

Coming to equity cash, it mainly focuses on long-term ownership. Here, shares are bought and held more than a day before selling. So, investors can benefit from price and dividends. It is not mandatory for the traders to square off their positions. Equity cash suits the investors who have medium- and long-term perspectives. Once the settlement is done, shares will be credited to your Demat accounts.

There is a procedure to participate in the equity markets. Traders need to open a Demat and a trading account with a registered broker. Next step is to identify the right opportunities with the help of technical or fundamental research. When you find a stock to trade, do it through the right broker by mentioning price and quantity. Once the trade is executed, next is the settlement. It includes the number of trades that got delivered and shares that are credited to your demat account within the next day of trading. While intraday trades can be squared off before the market closes.

Because of their advantages, equity markets attract a large number of investors. From seasoned traders to beginner traders who are exploring opportunities. At The Trade Bond, we always aim to educate people about equity markets. By covering their working, the process of trading, and their benefits. Whether you’re an intraday trader or a long-term investor, understanding equities is very important before stepping into the stock market.

The benefits of equity market participation include:

Potential Wealth Creation: Equities can help grow your capital over a period of time.
Liquidity: Shares can be easily bought or sold on exchanges like NSE or BSE.
Getting voting rights: Investors’ decisions can influence company performance.
Expanding Portfolio: Equity markets offer exposure over different sectors.
Income due to dividend: Some companies pay dividends to shareholders.
Transparency: Regulated by SEBI, ensuring a structured trading environment.

These benefits make equity markets a key component of both trading and long-term investing strategies.

It is very important to understand the advantages of equity markets before doing trading or investment. Trading in equities helps in capital growth, income generation, and portfolio improvement. But traders should need to have proper discipline and informed decision-making. At The Trade Bond, our stock market advisor will combine the market knowledge with the right guidance. So, you can freely navigate through the equity markets with confidence.

Are equity markets suitable for beginners?
Yes, equity markets are suitable for beginners. However, the investors should need to gain strong knowledge, and they need to take guidance from a registered share market advisor before making any decisions.

How equity markets regulated in India?
Usually, equity markets are regulated by SEBI (Securities and Exchange Board of India). So they will offer a structured environment for both Investors and traders.

Can Equity Markets help to achieve long-term goals?
You should need to invest in equities frequently to hold quality stocks. So, you can align with your portfolio to achieve long-term goals like retirement planning or children’s education.