Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




Who are the participants in equity market?

Reply to topic
Money Talk > Personal Finance

Author Thread
24cfinance
First Time Poster


Cash: $ 0.25

Posts: 1
Joined: 17 Aug 2017
Location: indore
Who are the participants in equity market?  Reply with quote  

Basically, there are three different types of participants which
interact with each other to carry various activities on the
exchange. They are:
1. Investors
2. Dealers and brokers
3. Issuers
Investors are the people who invest and divest in shares on the
virtually available exchange. In equity market, the trading can
be intraday or delivery. When investors hold their stocks for
longer, they are actually putting their money on risk. Risks are
inevitable in market place. Quality information, sophisticated
trading tools, consistent updates of stocks helps to mitigate
risks.
Brokers and dealers act as agents or intermediaries between
exchange and customers. They help in opening a brokerage
account, carrying out trade and also provide basic knowledge of
stock market. In other words, brokers and dealers bridge the
gap between exchange and investors. Brokers enjoy a
commission or brokerage fee as a reward for the work they do.
There are several companies listed in stock exchange. These
companies issue and distribute their securities (shares) in public
market for the investors to invest. These companies are legal
entities and this issuing of shares is carried out in accordance
with the laws of the exchange. Since they issue stocks to be
traded, they are termed as issuers.
Now, what’s the need to distribute the securities in public
market?
In order to raise equity capital, obtain extra capital for financial
growth and to optimize a company’s capital structure, issuers
issue stocks.
These are the major participants that make up the equity
market.
Post Thu Aug 17, 2017 12:02 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016