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Basics of Financial Market

Basics of Financial Market

  • Meaning of Financial Market:- An area where the buying and selling of financial assets and securities take place is referred to as a financial market. Financial markets enable participants to pass on risk and advance trade in addition to enabling capital raising. The association between individuals who possess capital to invest and those who require capital is facilitated by financial markets.
  • Benefits of Investing:- The rate at which prices increase over a particular period is termed inflation. Inflation is frequently measured in broad terms, such as an overall rise in prices or an upsurge in a nation's cost of living. The cost of living is the sum of money required in a certain location and time frame to meet necessities including housing, food, and medical care. Due to inflation, an individual needs to invest their savings from income to generate additional revenue and beat inflation.
  • Regulator of Financial Markets:- The regulator of financial markets in India is SEBI- Securities and Exchange Board of India. The regulatory body SEBI has the role of supervising the functioning of the Indian capital and securities markets, safeguarding the rights of investors, and fostering the growth of the securities market.
  • Difference between Primary Market and Secondary Market:-  The primary market is where business enterprises initially create and offer securities for sale, as with an initial public offering (IPO) for the first time. In this type of market, firms can raise funds by issuing securities and making it public limited from private limited. Existing securities are purchased and sold in the secondary market. While the secondary market offers liquidity and enables investors to buy and sell securities after they have been issued, the primary market is essential for companies to raise cash to expand their operations. Both markets contribute significantly to the overall efficiency of the financial system.
  • Meaning of Intraday Trading:- Stocks are purchased and sold throughout the same trading day as part of intraday trading. In this case, stocks are bought to make profits by benefiting from daily price fluctuations rather than with the intention of investing.  As a result, the price changes of the stocks can be taken benefit of to increase stock trading earnings.

 

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Attention Investors :

Prevent Unauthorised transactions in your account. Update your mobile numbers/email IDs with your stock brokers. Receive information of your transactions directly from Exchange on your mobile/email at the end of the day..... Issued in the interest of investors. | KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary. |We do proprietary trading occasionally |Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 01, 2020. |Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month ........... Issued in the interest of Investors.