Investment in shares of Listed Companies on various Stock Exchanges comes under the Direct Equity category. In India NSE, BSE are the most popular stock exchanges where shares of listed public companies can be bought and sold. Investors can open a trading account with a registered broker and start trading in the listed companies.
Listed companies are generally divided into 3 broad categories
Big companies with Market Capitalization of over Rs 20000 crore
Companies with Market Capitalisation between Rs 5000 cr to Rs 20000 crore
All companies having Market Capitalisation of below Rs 5000 cr
This is a relatively new segment wherein investors can invested in equity shares of companies which are yet not listed on any stock exchange. These type of shares are transacted privately and directly between the seller and the buyer.
The liquidity aspect is missing in these unlisted shares as the volume can be controlled by the sellers. Only informed investors with a certain level of market skill are advised to invest in Unlisted Equity.
This is a niche market segment wherein investors can temporarily lend or borrow securities against an income or a fee. This allows investors who are holding securities with a long term perspective to earn additional income on their holdings.
Borrowers can use borrowed securities for derivatives positions and other arbitrage opportunities.
