What are Equities?
The instruments available for trading on NSE and BSE and can be
classified as:
Equity
Equities are traded on the stock market. These could be in the primary
or secondary market. In the primary market, companies get listed through
an Initial Public Offering. Thus, new securities are available in the
primary market. In the secondary market, investors buy or sell
securities, which have already been issued. Currently, more than 1300
securities are available for trading on the National Stock Exchange
(NSE) and over 6000 on Bombay Stock Exchange (BSE).
Derivatives
Derivatives give you an avenue to boost your returns from equities, by
providing leverage through products like futures and options. Derivative
instruments are available for shares, indices, currencies as well as
commodities. Their value is tied to the underlying security.
Initial Public Offerings (IPO)
An IPO is the first sale of a company’s equity to the public. Existing
shareholders can get an exit route or a better value for their
investment. One can also be the part of the growth story of the issuing
company.
Currency Derivatives
Currency derivatives is a contract between the seller and buyer, whose
value is to be derived from the underlying asset, the currency value. It
offers two advantages to the traders: an opportunity to benefit from
currency value fluctuations, and a chance to minimize loss from currency
value fluctuations due to various factors.