DEFINITION of 'Equity '
Equity is the value of an asset less the value of all liabilities on that asset.
The market where shares are bought and sold is equity market or stock market.
The participants involved in financial market are:-
1.Regulator
2.Exchange
3.Broker/sub-broker
4.Traders
Opening price for NIFTY:7395.35 (1.18%)
DEFINITION of 'Primary Market'
A market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities. Primary markets are facilitated by underwriting groups, which consist of investment banks that will set a beginning price range for a given security and then oversee its sale directly to investors.
BREAKING DOWN 'Primary Market'
The primary markets are where investors can get first crack at a new security issuance. The issuing company or group receives cash proceeds from the sale, which is then used to fund operations or expand the business. Exchanges have varying levels of requirements which must be met before a security can be sold.
Once the initial sale is complete, further trading is said to conduct on the secondary market, which is where the bulk of exchange trading occurs each day. Primary markets can see increased volatility over secondary markets because it is difficult to accurately gauge investor demand for a new security until several days of trading have occurred.
DEFINITION of 'Intraday'
Another way of saying "within the day". Intraday price movements are particularly important to short-term traders looking to make many trades over the course of a single trading session. The term intraday is occasionally used to describe securities that trade on the markets during regular business hours, such as stocks and ETFs, as opposed to mutual funds, which must be bought from a dealer.
Definition Of Delivery Trade:
A trade which does not get square off within the day.There is transfer of ownership.
It is of 2 types:-
1.Buy Delivery Trade.
2.Sell Delivery Trade.
Definition of Clearing and Settlement:
It is a process which complete electronic trade through exchange.
In this process buyers and sellers fulfill their obligations.Buyers give full amount of shares bought and receive delivery of shares from seller and seller get the amount of sold shares.This process is called as clearing and settlement.
Clearing and Settlement period of NSE/BSE is T+2 days.
Shortage:
If seller of shares fails to give delivery of sold shares within prescribed time period.It is known as shortage.
After the process of Shortage,the condition of AUCTION takes place:
1.Auction Buying In:
It is a process initiated by exchange repurchase shares from auction marketwhich the seller fails to give to the buyer,difference amount will be recovered from the seller.
2.Auction Close Out:
If exchange is not able to buy share in the auction market,then transaction settle in cash(monetory terms) by imposing 20% penalty on the seller on the basis of highest price traded on exchange from trading day to auction day.Penalty amount exchange gives to the buyer.
BTST:BUY TODAY SELL TOMMOROW.
It is a technique mainly used to take the advantage of the movement in the stock for one day
STBT:SELL TODAY BUY TOMORROW:
Here the trader sells a stock today and buys it tomorrow,this cannot be done in cash segment.
