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The difference is based on the duration we hold the shares
when you buy shares and hold it for a longer period as more than a year or two years and then sell them realising some profit its called as investment. there are 2 types – short term and long term investment.
when you buy shares and hold them for a day or a week or few months, then sell them, its called s trading. there are 2 types- intraday and positional trading
INVESTMENT – BUYING THE GOOD SHARES IN PRIMARY MARKET (IPO) OR IN SECONDARY MARKET BASED ON COMPANY BUISNESS AND HOLDING THE SHARES FOR A LONG PERIOD (DURATION MAY BE 3 TO 5 YEARS OR MORE ) TO GET GOOD RETURNS WITH FREQUENTLY WATCHING THE MARKET
TRADING – TWO TYPES OF TRADING KNOWN AS INTRA DAY AND DELIVERY
INTRA DAY – SETTLEMENT TAKES PLACE WITHIN A DAY (WHETHER LONG OR SHORT)
DELIVERY – SETTLEMENT TAKES PLACE ANOTHER DAY (ONLY LONG POSITION)
The difference is the duration between buying and selling of shares.
If the shares are sold after holding them for a longer periods e.g. 1 ye or so… it is called investment.
If the shares are sold after hold them for shorter period e.g. few weeks… it is called trading.
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