what is equity market

One of the benefits of trading in the share market is that investors can become partial owners of a company. These shares, offered by companies in return for money, are called equities. In the Indian stock market, equities are available for trading at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

An equity market, also known as the stock market, is a platform for trading in company shares. It is the place where buyers and sellers meet to trade in listed companies. Listed companies are those entities that have offered some part of their equity to public investors.

Understanding an Equity

Equity consists of funds that shareholders invest in a company plus a certain amount of profit earned by them that is retained by the company for further growth and expansion.

Benefits of Equity

• Share market investments, in comparison to other types of assets, have given one of the best returns during inflation. This enables investors to maintain their current lifestyles without cutting costs even when the prices of goods are steadily increasing.
• Equity, while being a risky investment, offers higher returns than a savings account or a fixed deposit because the profit that may be earned is virtually unlimited
• It is possible to minimize risks and maximize profits through the use of equity derivatives, specifically by trading in the Options market
• Using sound share market knowledge to invest in equity is the key to building a large corpus for a future financial need, because equity gives high returns in the long run
• Investing in the equity of reputable companies has the added benefit of dividends.
  

watch video this video i will  explain the equity market in this video.