Introduction to Equity Trading

Equity trading is a financial activity that involves the buying and selling of company stocks, representing ownership in a corporation. This dynamic market is a crucial component of the broader financial landscape, providing investors with opportunities to participate in the growth of companies and the overall economy. Here are key aspects of equity trading:

1. Ownership through Stocks:
Stocks, also known as shares or equities, are ownership interests in a company. When investors purchase stocks, they become partial owners of the company and are entitled to a share of its assets and profits.
2. Stock Exchanges:
Equity trading takes place on stock exchanges, which are marketplaces where buyers and sellers come together to trade stocks. Major global exchanges include the New York Stock Exchange (NYSE) and the Nasdaq in the United States, as well as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India.
3. Market Participants:
Various participants engage in equity trading, including individual investors, institutional investors (such as mutual funds and pension funds), and traders. These participants contribute to the liquidity and price discovery of stocks.