Online Share Dealing

Details

Category: Online Share

Online Share Dealing is another name of Online Share Broking. It facilitates share trade through online share dealing services. Online Share Dealing is becoming the order of the day in share trading. Now-a-days one could hardly see a person going to the stock exchange floor and placing his order. Electronic media has played an important role in flourishing the share market. In case of online share dealing an investor could place his order from his own house if he has internet connection. In earlier days the brokers went to the stock exchange floor and place their clients' order. But now through the help of the satellite the broker can have his own trading system from his desired place. This system is known as VSAT system. In turn they also give connection to their clients through internet for performing online share trading. The client could avail the share market from any place he wants provided he has a computer with an internet connection.

Online Share Dealing services involves :-Trading facility via internet in the personalized computers, Fast Transactions, Low brokerage or commission according to trading types (intraday or delivery) and the commission gets decreased with increased volume of trade, Free share investment advices and tips supplied online and on a real time basis, Share performance graphs and statistical tools ,Free Brochures on equity trading, Free brochures on investment plans such as Pension Plans, Plans on Shares, etc, Free annual reports from companies that one follows for investment Once a person opens an online trading account with a broker-dealer then the investment in his/her preferred companies become easy, time saving and hassle free. The investor could place orders by his own from his own PC provided it has internet facility in it. There is also a facility of compiling one's preferred shares for investment in an Online Stock Watch. This helps an investor to keep a watch on his investments and their comparative progress. Thus it enables an investor to keep an efficient track on his portfolio.

Basically, Online Share Dealing is only execution of the shares. It also has two variants and changes with the change in brokers. Most of the brokers hold share certificates of the investor in a nominee account on his behalf. With every execution of orders the documents first goes to the nominee account of the broker and in turn it is being forwarded by him to the investor. Dividends and profits accrued by the investor first goes to the nominee bank account and then to the client's account. There are some brokers (very few in numbers) who give their clients the facility of holding share certificates in their own name. The main advantage of this facility is that it is not mandatory to square up the open position through the same broker he took that position through. Here the dividend and profit is directly sent to the investor in the form of a cheque. Documents (takeover announcements, proposals related to restructuring, etc.) are directly sent to the investor via post.