WHO ARE SHARE MARKET PARTICIPANTS?

                                  In previous post we have learnt how share market works?.Now we will know who are the participants in share market.The participants in the share market are mainly divided in two

1. Individual retail investors
2. Institutional investors

                                  We all know individual retail investors are those individual who invest in stock market  

and institutional investors  for eg:Mutual funds,pension funds ,insurance companies etc  are those who receive income through premium,investment from their customers invest in share markets.In India LIC is the big bull i.e it is the word used for big investors.

                                  In retail investors they are divided into two types based on their investment purpose i.e traders and investors.Traders are those who hold shares for a very short period of time and they trade the shares for speculative purpose and on the other hand there are investors who invest in share for long term purpose i.e more than one year.

                                   To speculate(means to make profit from fluctuations) on a share the trader has to make a technical analysis on the shares (i.e this study is to analyse the movement of price with short term perspective)

                                For those who invest for long term perspective should do a fundamental analysis of the particular company viz it's financial strength,government support,operational efficiency etc.Because in long term company with strong fundamentals will only survive.

IN THE NEXT POST WE WILL LEARN ABOUT TYPES OF SPECULATORS.