FREQUENTLY ASKED QUESTIONS.
An investor may involve himself into Equity Trading for one or more below-listed reasons:?
• Generation of capital gains by making investments for a tenure exceeding one day
• Generation of speculative gains by executing jobbing transactions i.e. the transactions which are
squared-up on the same day and
• Procurement of corporate benefits like Dividends, Bonus Shares, Right Shares etc.
Besides others, Equity Trading has following important distinctive features:?
• The possibility and quantum of gains as well as losses that may arise out of equity trading are
unlimited
• The holders of equity shares are treated as part owners of the respective companies, for all practical
purposes
• Gains arising out of shares which are held for more than 1 year as well as Dividend Incomes are
absolutely tax-free
• Gains arising out of shares, which are held for less than 1 year, are & taxed at a highly concessional
rate of 15% and
• Equity Trading can legally be done only through a SEBI registered broker/sub-broker