What is the difference between investment and trading on stock markets ?
Starting with investment in the stock market, it means that we buy shares for a longer duration that is say for a period of 3 months or longer, possibly ranging to a couple of years. The return on investments is in the form of the capital appreciation in the share price, plus any dividend or share splits, bonus, etc., that is declared during the period for which the shares are held. Trading, on the other hand, relates to buying and selling intra/day or on a daily basis. The trade position carries on for a couple of days or for a week. The return on trading is the favorable price movement or appreciation of the scrip..
