The stock market is also known as the equity market and share market. It is the aggregation of the buyers and sellers of the stocks that will represent the ownership claims on the business.
What are the types of the financial intermediaries in the stock market?
A number of the corporate entities are involved to ensure the smooth transactions. These types of entities are known as financial intermediaries. The types of the financial intermediaries in the stock market are given by,
- Stockbroker: The stockbroker is also called a dealer is a professional individual person who is buying or sells the shares on behalf of his client. The stockbroker will be registered as the trading member in the stock exchange and holds the stock broking license.
- Depository and depository participants: They will offer you a service of the DEMAT account. This account will have all the share of the investor’s owns in an electronic format.
- Banks: The bank will help you to transfer the funds from a bank account to the trading account.
What is the importance of the DEMAT account and trading account in the stock market?
The importance of the DEMAT account and trading account in the stock market is given by,
DEMAT account: It is also known as the dematerialized account which will allow you to hold shares in the electronic form instead of taking the physical certificates. This account will hold all the investments an individual shares, exchange-traded funds, bonds, mutual funds, and government securities.
Trading account: The trading account is used to place the buy or sell in the stock market. You can open your trading account with the stockbroker who is registered with the SEBI.
What are the types of the socks are available on the stock market?
- Growth: The investors are rewarded from the appreciation in the stock price. The growth stock is one of the risky which is compared to the other categories.
- Value: The stocks are available at a significant discount to their intrinsic value which is fall under this category.
- Dividend yield: It will generate a significant amount of cash in the business and do not have an enough profitable opportunities to deploy the cash.
- Cyclical: The company profits are linked to the economic cycle.
These are the some of the different types of stocks in the stock market.
Information sources on the stocks:
- Red herring prospectus (RHP)
- Annual reports
- Quarterly results
- Investors presentations
- Earnings conference calls
- Management interviews in the print of television.
You can find more stocks information at https://www.webull.com/quote/ipos before stock trading.