What is Equity Trade Life Cycle?
Ever wondered what is the trade life cycle of equity in the capital market is like? How the stock market function and ensures everyone gets their traded shares? In this article, we will discuss briefly how the process of share distribution takes place between the company and investors. The life cycle of a trade in the capital market starts from the investor. An investor is a person or organization who is always in search of good investment opportunities and regularly invests in different financial assets like shares of a company, real estate, commodities, and bonds. The life cycle of equity consists of 6 steps, with the help of which an investor can receive his shares from the company. Step 1: Placing the order with a broker firm The investor finds an investment opportunity and plans to buy shares of a particular company. To which, they inform the broker firm to place a buy order from their side. Step 2: The broker firm receives the order The buy...