Definition

usa_neeraj · #1 29th May 2006, 11:23 AM

I am new to this market thsee days anylzing equities.
i want to know what are equities , what are derivatives and what are options
plz explain with me example

Waiting for the best example for u senior people.

Best Regards

Disciple · #2 29th May 2006, 09:20 PM

Hello Friend!
Since you are very new to stock market,it would be better if you get yourself well acquainted with various stock market terms.For this just find a simple book and read it.Then if you have any queries however complex it might be this forum members will help you.This is a TREMENDOUS forum.Very cooperative one.You are in the right place.
God Bless You.
Disciple.

jdm · #3 29th May 2006, 10:12 PM

just google. you will find a lot of material on the net itself to meet your thrust of knowledge.

amitt29 · #4 29th May 2006, 11:25 PM

Hello, welcome to this august forum.
I wud try to give very basic idea to u so as to u dont confuse urself.
Equities are shares of a company as u buy them u become part of the companys investor community.U will be entitled to the bonus(shares against shares),dividends(periodic payouts) of the company if u hold them for a period of time.Scrips are name of the shares.They are traded on all major exchanges of India,but the main exchanges are BSE and NSE.The Bse has a primary index of 30 shares called sensex comprising of sound fundamental based companies having good liquidity.The NSE has a primary index called S&P Nifty comprisinng of 50+ scrips.The premiere scrips are Infosys,TCS,ONGC,Maruti,TISCO to name a few.U can even buy 1 share on a company.

Derivatives as the name suggest is derived from equities but the difference being they comprise of lots(meaning no of shares).Eg 1 lot of Infosys is of 100 shares and 1 lot of ONGC on the other hand is of 300 shares.You can only buy or take positions in 1 lot of a scrip.U can even trade the Indice(namely NIFTY)like that.Futures and Options are the two segments of Derivatives.They have limited losses but unlimited profit potential,if traded with proper money management and studying.
You can checkout http://ww.nseindia.com/ and click on Investors centre and download acrobat reader files to have even better idea.Study hard and Trade cautiously,there is a gold mine there just waiting to be exploited.

Hope this helps.
There are a few threads here courtesy of a few senior members where u can have good explanations on the working of our stock exchanges.