What is Equity ? Equity Basics for retail investors

Equity in India is basically buying stocks for a particular company from stock markets. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are two popular stock exchanges in India. To invest in equity for a particular company, one needs to have a Bank A/C as well as Demat A/C so that one can add in funds and then select a stock in which one wants to invest respectively.

Buying stocks of existing company are done through secondary market and buying of stocks of companies who are entering into the market via IPO is done through primary market. These stocks eventually enter into the secondary market after IPO is over. The equity market is highly volatile due to which it is necessary that one needs to wisely invest and it is recommended to invest from a long-term perspective to get better and stable returns. Stock Exchange index price of BSE is done by 30 stocks and of NSE by 50 stocks. These stocks can change based on the exchange's decision. There are two types of market situation, either it is Bullish (good) or Bearish market (bad). Investors generally buy in bullish market and sell in bearish market.

Equity : Bullish Market

Many investors have made and lost money in investing into equity because of several reasons, due to which it is recommended that one needs to invest by doing proper research so that the possibility of loss is minimized to a larger extent. But one needs to keep in mind that there is no guarantee that one would definitely make returns in equity markets as the  market is volatile and can go in any direction based on investor sentiments.

Almost all the big companies established in India have their company listed on these exchanges. You name it and the name would be there on the list. Equity Markets & Exchanges are regulated in Securities & Exchange Board of India (SEBI) which is a government body primarily setup for monitor and taking necessary actions related to equity markets.

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If you have any queries regarding equity, feel free to ask them in the comments section and you can even as it in Ask a Question Section. I would be happy to answer them so that it get sorted.