The equity market is essentially a place where equity shares of companies are bought and sold. It is for this reason that the equity market is also referred to as the share market or the stock market. When it comes to equity trading, there are two types of equity shares that are generally bought and sold in the Indian stock markets - regular equity shares and equity shares with differential voting rights (DVRs).

The benefits that you get to enjoy by investing in the equity market in India are aplenty. Here’s a quick look at a few of them.

- You get the chance to enjoy high returns on your equity investment

- You get the chance to earn passive income by way of dividends

-The investments in equity are highly liquid

- The process of investing in shares is highly transparent

- By investing in stocks, you get an ownership stake

- Investing in the equity market is highly flexible

To start trading in the equity market, you first need to open a trading and demat account with a stock broker cum depository participant . Once you’ve opened the accounts, log into the trading portal of your stock broker using the user credentials given to you.

Sweat equity shares are essentially equity shares that are given out to the directors and employees of a company for providing any value additions by way of intellectual property rights or know-hows to the organization. It is an equity investment for the directors or employees and can be sold only after a lock-in period of at least 3 years.

In equity trading, there are two primary types of orders that you can place - a market order or a limit order. A market order places your buy or sell order at the current prevailing market price of the stock, with the intention of executing the order as soon as possible.

Private Equity is an equity investment that’s made in a company that’s not publicly traded on the stock exchanges.