For all your financial queries... Reach us at tax.casuriya@gmail.com 💌 Whatsapp - 99763 72162 Enjoy the Video till end. Do Subscribe, Share, Like and comment. https://www.youtube.com/@taxwithsuriya What is Stock Market?? The stock market is a marketplace where people can buy and sell shares of public companies. Companies sell shares to raise money for their business, and investors buy shares hoping to make a profit. The stock market is a complex system, but it can be a great way to grow your wealth over time. There are two main categories of stock market transactions: Equity delivery: 1. Equity delivery in the stock market refers to a method of buying shares with the intention of owning them for some time. Here's a breakdown of what it means: 2. Ownership and Holding: When you buy shares through equity delivery, you become the legal owner of those shares. These shares are deposited electronically into your demat account, similar to a digital safety deposit box for securities. 3. Settlement and Timeframe: Trades are settled after a specific timeframe, typically T+2 days (trading day + 2 working days) in India. This means the shares will be reflected in your demat account after T+2 days. Unlike intraday trading where you buy and sell shares on the same day, equity delivery allows you to hold the shares for as long as you want - days, weeks, months, or even years. Benefits of Equity Delivery: 1. Potential for Capital Appreciation: Owning shares allows you to benefit from potential price increases in the future. You can sell them for a profit whenever you decide. 2. Dividend Income: Some companies pay out dividends to their shareholders, which can provide a regular income stream. 3. Voting Rights: In some cases, owning shares may entitle you to voting rights on company decisions. Speculative trading: Speculative trading in the stock market involves actively buying and selling stocks with the aim of profiting from short-term price movements, rather than focusing on the long-term health of the companies. It's a high-risk, high-reward strategy that can be exciting but requires a strong understanding of the market and a tolerance for potential losses. 1. Focus on Price Movements 2. Trading Strategies 3. High Risk 4. Examples of Speculative Investments F & O {Futures and Options}: F & O stands for Futures and Options, which are derivative instruments used in the stock market. These are contracts between two parties that derive their value from an underlying asset, like a stock, index, commodity, or currency. Unlike simply buying a stock, F&O contracts deal with the obligation to buy or sell the underlying asset at a predetermined price on a specific future date. Benefits of F&O Trading: 1. Hedging 2. Leverage 3. Speculation Who Should Consider F&O Trading: F&O trading is generally not recommended for new investors due to its complexity and high risks. It's suitable for experienced investors with a strong understanding of the stock market, derivatives, and risk management strategies.