By: Data Dalal | February 08, 2016

        Funds brought into a business by its shareholders is called equity. It is a measure of a stake of a person or group of persons starting a business. 


What does investing in equity mean?
        When you buy a company's equity, you are in effect financing it, and being compensated with a stake in the business. You become part-owner of the company, entitled to dividends and other benefits that the company may announce, but without any guarantee of a return on your investments.

Category: STOCK MARKET A TO Z 

Tags: DEFINITION 

By: Data Dalal | February 08, 2016

         SEBI has formulated uniform guidelines for good and bad delivery of documents. Bad delivery may pertain to a transfer deed being torn, mutilated, overwritten, defaced, or if there are spelling mistakes in the name of the company or the transfer. Bad delivery exists only when shares are transferred physically. In "Demat" bad delivery does not exist. What are company objections?A list documenting reasons by a company for not transferring a share in the name of an investor is called company objections. Rejection occurs due to a signature difference, or fake shares, or forgery, or if there is a court injunction preventing the transfer of the shares.

Category: STOCK MARKET A TO Z 

Tags: DEFINITION 

By: Data Dalal | February 08, 2016

       An auction is conducted for those securities that members fail to deliver/short deliver during pay-in. Three factors primarily give rise to an auction: short deliveries, un-rectified bad deliveries,un-rectified co. object.

Category: STOCK MARKET A TO Z 

Tags: DEFINITION 

By: Data Dalal | February 08, 2016

        Short selling is a legitimate trading strategy. It is a sale of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers take the risk that they will be able to buy the stock at a more favourable price than the price at which they "sold short."

Category: STOCK MARKET A TO Z 

Tags: DEFINITION 

By: Data Dalal | February 08, 2016

        The rolling settlement ensures that each day's trade is settled by keeping a fixed gap of a specified number of working days between a trade and its settlement. At present, this gap is five working days after the trading day. The waiting period is uniform for all trades. When does one deliver the shares and pay the money to broker?As a seller, in order to ensure smooth settlement you should deliver the shares to your broker immediately after getting the contract note for sale but in any case before the pay-in day. Simliarly, as a buyer, one should pay immediately on the receipt of the contract note for purchase but in any case before the pay-in day. 

Category: STOCK MARKET A TO Z 

Tags: DEFINITION