10 EASY WAYS TO MAKE MONEY FROM SHARE MARKET Investment
• Capital appreciation
• Dividend
• Bonus Share & Stock split
• IPO
• Buyback
Trading
• Intraday trading
• BTST
• Short sell Trading.
• Swing trading & Position trading
• Futures and options
Investment
1. Capital appreciation : Long term and Short term
Capital appreciation is an increase in the price or value of assets. It may refer to appreciation of company stocks or bonds held by an investor, an increase in land valuation, or other upward revaluation of fixed assets. If it is less than 1 year it is short team investment and if more than 1 year it is long term.
2. Dividend
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.
3. Bonus Share & Stock split
Stock split is the same share divided into two or more shares as per the ratio whereas a bonus issue is an additional share which is given to the existing shareholders. ... In bonus the face value remains the same but in split issue, the number of shares get double and price is adjusted.
4. IPO
Initial public offering or stock market launch is a type of public offering in which shares of a company are sold to institutional investors and usually also retail investors. An IPO is underwritten by one or more investment banks, who also arrange for the shares to be listed on one or more stock exchanges.
5. Buyback
Stock buybacks refer to the repurchasing of shares of stock by the company that issued them. A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.
Trading
6. Intraday trading
Intraday trading deals with buying and selling of stocks on the same day, during the trading hours that are stipulated by the exchange. Stocks are bought and sold in large numbers strategically with the intention of booking profits in a day.
7. BTST
BTST (Buy Today, Sell Tomorrow) is a facility that allows customers to sell shares before they are credited into a demat account or take the delivery of shares. The decision has to be made in 2 days. This facility is also known as ATST or Acquire Today, Sell Tomorrow.
8. Short sell Trading.
A short sale is a transaction in which the seller does not actually own the stock that is being sold but borrows it from the broker-dealer through which he or she is placing the sell order. The seller then has the obligation to buy back the stock at some point in the future. Short sales are margin transactions.
9. Swing trading & Position trading
Swing trading is a style of trading that attempts to capture gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities. Upward and downward “swings” in the price of a security. Traders hope to capture small moves within a larger overall trend. Swing traders aim to make a lot of small wins that add up to significant returns.
The primary difference between position trading and swing trading is the amount of time involved between buying an asset and selling it. Whereas position traders hold assets for long periods of time, such as months or years, swing traders will buy and sell assets within days.
10. Futures and options
A future is a right and an obligation to buy or sell an underlying stock (or other assets) at a predetermined price and deliverable at a predetermined time.
Options are a right without an obligation to buy or sell equity or index.
A call option is a right to buy while a put option is a right to sell.
Futures contracts have the buyer obligated to honor the contract, whereas in options contract, there is no obligation on the buyer to buy or sell.
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