Скачать или смотреть Learn About Documentation And Orders - Stock Market Topics Basics #5

Documentation and Orders:

Documentation:

Share Certificates:

Share certificates are legal documents that serve as proof of ownership of shares in a company. While physical share certificates were traditionally issued, many markets have transitioned to electronic or dematerialized shares. Investors receive a statement or electronic record as evidence of their ownership.
Contract Note:

A contract note is a legal document that confirms a transaction between a broker and a client. It includes details such as the trade date, security traded, quantity, price, and brokerage charges. This document is crucial for record-keeping and dispute resolution.
Charges Involved:

Investors may incur various charges when trading in the stock market. These charges include brokerage fees, Securities Transaction Tax (STT), stamp duty, transaction charges, and Goods and Services Tax (GST). It's important for investors to be aware of these charges to assess the overall cost of their trades.
Types of Orders:

Market Order:

A market order is an instruction to buy or sell a security immediately at the prevailing market price. The execution of a market order is subject to the availability of a counterparty in the market.
Limit Order:

A limit order allows investors to specify the maximum price at which they are willing to buy or the minimum price at which they are willing to sell a security. The order is executed only if the market reaches the specified limit price.
Stop Loss:

A stop-loss order is designed to limit an investor's loss on a position. It becomes a market order when the stock reaches a predetermined price, helping to minimize losses during a declining market.
Cover Order:

A cover order is a two-legged order where an investor places a market order along with a stop-loss order. It helps traders manage risk by automatically placing a stop-loss order when entering a position.
After Market Order (AMO):

After Market Orders allow investors to place buy or sell orders beyond regular market hours. These orders are queued and executed when the market opens on the next trading day.
GTT Order (Good Till Triggered):

A GTT order allows investors to set a trigger price for a stock, and the order remains active until the trigger condition is met. Once triggered, it becomes a market or limit order.
Other Concepts:

Short Selling:

Short selling involves selling a security that the investor does not own, with the expectation of buying it back later at a lower price. It is a strategy used to profit from a decline in the security's price.
Auction Market:

An auction market is a market where buyers and sellers place competitive bids in a centralized location. Stock exchanges often operate as auction markets, where prices are determined through a bidding process.
Price Time Priority:

In a price-time priority system, orders are prioritized based on their price and the time they are entered into the market. The best price gets the highest priority, and among orders at the same price, the order entered first is executed first.
Understanding these concepts is crucial for investors to navigate the stock market, place effective orders, and manage their investments with awareness of associated documentation and charges.
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