| Meaning of the Demat account | | | | the company with a chance to realize some profits |
| Dematerialized account is known as a Demat account. | | | | on the performance of the company. |
| A company should offer you securities in both Demat | | | | We can split this market in two major sectors: the |
| and physical form; you can receive them in the mode | | | | primary as well as the secondary market. |
| you prefer. | | | | In the primary market the new issues are usually |
| If you want to receive the securities in the Demat | | | | offered. After this any further trading is done in |
| mode, you must mention the depository name and | | | | secondary markets. |
| the depository participant who has a name in the | | | | Meaning of the Equity Trading |
| depository account in your application. | | | | The selling and buying of the stock shares of the |
| It is usually preferable to have securities in the | | | | company is termed as the equity trading. Shares of |
| Demat form as the physical securities usually carry | | | | many large companies which are publicly traded are |
| the risk of being forged, fake or can be stolen. | | | | sold and bought via large stock exchanges, which |
| Meaning of the Equity | | | | also serve as auction managed for the purpose of |
| Equity usually is termed as a financial instrument | | | | trade. The stock shares in the small public companies |
| invoked by the company to invite the people to | | | | are usually sold and bought in the over-the-counter |
| make a investment of their funds in the firm and this | | | | market. |
| way the investor becomes the part owner of the | | | | The owner of the shares can indulge in the equity |
| company. Mostly when there are insufficient funds | | | | trading, or he can operate through an authorized |
| available to the company for the expansion of its | | | | agent for buying and selling of the shares on his |
| business, it comes out with the equity shares. | | | | behalf. Principal or proprietary trading is the selling and |
| Meaning of the Equity Market | | | | buying for the profit of the trader. In such a case |
| It is the market where the shares are normally issued | | | | the owner of the shares is the "principal". The |
| and also traded either on exchanges or on the | | | | Agency trading involves the selling and buying by the |
| over-the-counter market. It is also called the stock | | | | agent, mostly a stock broker, on behalf of the client. |
| market and is a most important part of the market | | | | The agents get a commission for the trade |
| economy as it gives the companies an access to the | | | | performance. |
| capital and the investors a chance to own a part of | | | | |