A sweep account is a type of bank or brokerage account that automatically transfers funds in excess of a certain amount to a higher interest-earning investment account.
Typically, promoters of a company dedicate time and effort to the growth of a company. It is only fair for promoters, founders, or key employees to be rewarded for resolute perseverance.
For investors looking to invest systematically, they diversify across various sectors such as fixed-income products, which include a lower risk than other investment avenues.
An automated computer system that connects buyers and sellers through their orders for the same securities on a listed market, is known as an ECN or "electronic communication network". It is a digital system that takes trading outside of the physical market.
Many investors start investing in the stock markets when they start to earn. Young individuals use this regular source of income to cover their daily expenses and invest whatever they can save. They generally use these investments to achieve short-term goals, such as purchasing a house or a car.
The Indian stock market has provided over 12% returns on investments when traditional investment avenues could only offer 4-5%. With widespread financial literature and advanced technology backed investment platforms, India is witnessing an unprecedented rise in the number of investors willing to apply to IPOs and buy shares in the secondary market.