EQUITY & DERIVATIVES

EQUITY & DERIVATIVES

Equity

What is equity?

When you buy an equity share of a company, you are buying into the ownership in the business. As an equity investor, you are a partial owner of a company. When the new shares are issued by the company to the investors directly,it is called as "primary market", where the transaction happens directly between the company and the investor.

The investors, who have bought the shares from the primary market, cannot sell back the shares to the company whose shares they are holding. In such casethey will have to look for a suitable buyer to sell the shares of the holding company. A virtual market place is created for the benefit of such buyers and sellers called as "Stock Exchanges", where equity shares are bought and sold. The stock exchanges are called as "Secondary Markets"

Shares are one of the best long-term investments in the financial market place. However, it can be a precarious proposition due to the risks involved in potential returns. The level of risk involved varies but, if you want to make money, you can't cut out all the risk. It’s best to take help of an experienced and trustworthy expert who will guide you on when, where and how to invest.

Thainadu provides thorough guidance on the stock market along with multiple trading solutions and value-added tools & services so that you get the best returns out of your investments.


Derivatives

The derivative segment is a highly lucrative market that gives investors an opportunity to earn superlative profits by paying a nominal amount of margin. Over past few years, Future & Options segment has emerged as a popular medium for trading in financial markets. Future contracts are available on Equities, Indices, Currency and Commodities.

In finance, an equity derivative is a class of derivatives whose value is at least partly derived from one or more underlying equity securities. Options and futures are by far the most common equity derivatives, however there are many other types of equity derivatives that are actively traded.

The main difference between derivatives and equity is that equity derives its value on market conditions such as demand and supply and company related, economic, political, or other events. Derivatives derive their value from other financial instruments such as bonds, commodities, currencies, etc.