Review of Literature

Only available on StudyMode
  • Download(s) : 149
  • Published : April 1, 2011
Open Document
Text Preview
Trading is done in three ways
1.Cash trading
2.Spot trading
3.Derivative trading
The NSE trading system called National Exchange for Automated trading (NEAT) is a fully automated screen base trading. It is online and nationwide trading system. It adopts the principle of an order driven market. In this system a member can punch into the computer quantities of securities and prices at which he likes to transact. The transactions are executed as soon as it finds a matching sale or buy order from a counter party. The broking limited acts as a medium between the clients and the company , which sells the shares or issues of the company thereby raising the company’s capital and also investing the money of the investors in any of the investment policies available thereby increasing their income. In this transaction the broking limited increase their revenue through means of brokerage DEMAT ACCOUNT

If we want to save our money, then we have to open a savings account with a Bank. In the similar manner if we want to buy and sell shares, then we need to open a Demat account with a depositary participant registered with SEBI, NSE, and BSE. Demat denotes the dematerialization of shares. Demat account along with a trading account from a DP facilitate us to buy and sell shares online and to store the shares online without any bonded paper stuffs. Demat account facilitates faster transaction when compared with the older traditional trading method, (i.e) the share buyer have to inform to the broker regarding his purchase decision and then the broker forward it to the stock exchange, then they allot the shares to the respective buyer and send him a registered share certificate via postal department. The investor has to wait for 5 days for his transaction. But now due to the entry of Demat account and online share trading platforms, the investor can buy and sell any volume of shares online with a click of a mouse making trading easier and more comfortable...
tracking img