equity shares


For business, equity shares are considered a liability. The owner is supposed to distribute returns to the shareholders. Equity investments are highly volatile, which means they carry a high level of risk. However, they offer high returns to investors.

The company has to distribute dividends among the shareholders to pay them for bearing the risks. The shareholders also get the ownership title of the company to a certain extent (it depends on the number of shares they purchase).

Their benefit is not limited to the returns. They also get voting rights. Equity shares are offered to the public when a company needs to finance growth and expansion.

The shares of reputable and trustworthy companies are listed on the popular stock exchanges. They are traded to the interested investors.

The company collects the list of investors from the exchange and credits the dividend amount right to the bank accounts of the investors.

Investing in the Equity

Equity investments are highly recommended for long-term investors. It can get you up to 12% returns every year.

Let’s say you invested in the equity shares of a famous company at the rate of INR 150 per share. As the company grows, the price of these shares increases by INR 100, which makes each share worth INR 250.

The investors who purchased the shares for INR 150 can make a profit of INR 100 per share. If you have purchased 20 shares of the company, you will make INR 2000 from this investment.

Additionally, the company will offer dividends, bonuses, and other benefits.

Price Fluctuation in the Share Market

The stock market witnesses price fluctuations on a daily basis. In fact, the price of the stock tends to change every minute. The first and foremost factor that affects stock prices is the market.

The stock prices are mainly influenced by the demand and supply factors. For instance, if there is a high demand for the shares of a particular company, then its price will increase.

The price falls when there are a larger number of sellers for the stock than buyers.

Most people buy and sell stocks considering the latest headlines around the company. For instance, if the company is planning growth or a large investment, then its stock prices are highly likely to increase.

Negative news, on the other hand, can bring the prices of the shares down. That’s because people like to purchase the stocks of a company that’s likely to grow.

The stock value of a company also depends on its earning potential. You could use the technical analysis and trend charts to anticipate the stock price movements.


The money you make from the sale of the shares will be taxable. In other words, you are supposed to pay taxes to the government for the capital gains from share trading.

Here, the capital gain refers to the profit you earned from the sale rather than the selling price. The total tax you pay on these capital gains depends largely on the duration of your investment.

The longer you remain the shareholder of a company, the higher the tax you have to pay on the gains from share trading.

If you keep the shares for one-year and make profits from its sales, then it will be considered a short-term capital gain. On all types of short-term gains, you are supposed to pay a 15% tax on the income.

Long-term capital gains, on the other hand, are subject to a 10% tax. When you sell the shares listed on a popular stock exchange a year after you purchased them, then the money you make from the sale will be considered as the long-term capital gain. Either way, you have to pay tax on the capital gains.

Equity Shares and Equity Funds: Which is the Best Option?

Direct investments in equity shares can be complex. You need to know the working of the Nifty and Sensex to be able to make a direct investment in equity.

You should rather opt for equity funds to make the process easier and convenient. When you enter the equity fund market, you get a fund manager who takes care of the entire investment process.

There is nothing you need to worry about as everything is managed by the fund manager.

From your investment portfolio to the market factors, the manager will handle everything for you. The best part is that you can opt for a systematic investment plan (SIP), which requires an investment of up to INR 500 only.

Direct equity investment, on the other hand, requires large capital. Besides that, equity funds involve a simple and hassle-free investment process.

You only need to register an account with the popular stock trading platform and complete the KYC requirements. That’s it!

Gill Broking makes your Equity Investment & Trading Experience simple with major exchanges like NSE & BSE.

Open Trading Account Now @ https://www.gillbroking.com/open-an-account/

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The Share Market A Guide to Trading (2)

The Share Market: A Guide to Trading – Gill Broking

It is, therefore, important to learn both the pros and cons of intraday trading to get a better idea of how this market works and how exactly you can grow your money. In this post, we will walk you through a few advantages and disadvantages of intraday trading. So, keep reading to learn more.

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/MD011-40345555admin@gillbroking.com
2 Charanpreet GillWhole Time Director011-40345555gillbroking@gmail.com
3 Charanpreet GillCompliance officer011-40345555compliance@gillbroking.com
4Manpriya GillDesignated Director-1011-40345555manngill04@gmail.com
5Kewal GillDesignated Director-2011-40345555fvwealth@gmail.com

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