Investing 101

What are Stock Market Participants? What are the different types of such Participants?

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The Stock Market is a place which attracts students to High Net worth Individuals. The Stock market contains people from the either ends of the background spectrum. Anyone who transacts or is a part of the Stock Market is called a Stock Market participant.

Now here are the different types of Stock Market Participants:

1.Domestic Retail Participants – These are people like you and me transacting in markets

2.Domestic Institutional Investors – These are large Indian companies which invest in the securities of Listed Companies. Examples: Employees’ Provident Fund Organization and Life Insurance Corporation of India.

3.Domestic Asset Management Companies (AMC) – Typical participants in this category would be the mutual fund companies such as Axis Mutual Fund , Motilal Oswal Mutual Fund etc.

4.Foreign Institutional Investors –It means an institution established or incorporated outside India which proposes to make investment in securities in India. Ex- Franklin Templeton , Blackrock etc.

5. NRI’s and OCI – These are people of Indian origin but based outside India.

Just like a class of students contain a teacher , students who are toppers , students who are average and students who fail. The main motive of all the students in this class is to pass with a good percentage (good percentage will obviously differ from student to student).

In the same way the markets have their own diverse range of individuals and institutions whose main aim is to make money for themselves or for their shareholders.

Now obviously the buying power for all these participants differ. A retail investor like you may buy shares worth thousands of rupees whereas the NRI’s or Institutions buy crores of shares at one go. Therefore people track the buying and selling of such institutions or High Net Worth Individuals as their buying and selling can either skyrocket or depress a share’s price.

That is why you would have seen Newspapers publish the buy and sell information (like below) of such people and institutions.

Hope you liked this article,

You can check my stock portfolio here.

Thanks,

-ASLNK

Brandon Westf’s Incredible Transformation Journey: From 290 to 185 Lbs.

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