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Equity is the value of shares issued by the company to raise money by sharing a part of ownership. Investing in equity is the oldest form of investment. Companies issue shares through public announcements in newspapers or other media. Investors can be individuals or institutions or companies. Here the investor becomes a part of the company’s ownership by paying the share value. The unit of ownership is measured by the number of shares owned by the investor. As a return the profit is shared as dividend. Equity trading is the activity related to investing, buying, and selling equity to earn gains or profits. It involves all the techniques that attempt to increase the chances of income through equities. Enrich money provides you the quickest and uncompromised services with different brokerage plans and advanced technical research reports.
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Investing in the stock market by purchasing a company’s shares is called Equity investment. There are two ways to invest. One is to buy stocks directly, and the other is mutual funds. A trading account and a Demat are essential to invest in equity.
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This is a part of intra-day trading. It is a process of earning small profits from dozens to hundreds on the same day. There are chances of loss in a transaction. This is called scalping and differs from day trade because the holding period is less comparatively.
The investor tries to maximize the profit potential by understanding the trends and patterns. The time period ranges from one to seven days.
The investor judges the purchase and sale action by upwards or downwards momentum. If the prices are going up, there is a sales action and purchase otherwise.