Equity market is a place where stocks and shares of companies are traded. The equities that are
traded in an equity market are either over the counter or at stock exchanges. Often called as
stock market or share market, an equity market allows sellers and buyers to deal in equity or
shares in the same platform.
- Great wealth creation : The biggest
benefit of the equity market is the opportunity to make huge profit. Many investors have
experienced big returns that can never be given by any other financial investment.
- Enter and exit easily : In case of equity
market, you can easily enter and exit a stock. This should be compared to when you want to
sell a house, where you cannot sell it on your own will always.
- Lower taxes :When an equity is sold for
profit after holding for more than 1 year, the profit attracts 10% tax. In case of fixed
deposits, the tax rate is as per the individual's tax rate i.e up to 30%.