Share market basics for a baby investor

What is a share?

Share is a part that is similar to a document issued by the owners of the company, the number of shares you buy from the company that you buy will become the owner of that percentage which is bought from the share market.

What is the share market?

A market where shares are bought and sold, that market is called a share market or stock market. The work of stock market in India is from 09:15 to 13:30 PM, which means Monday to Friday, 5 days.

What is the Stock Exchange?

The stock exchange is an organized and regulated financial market platform where bonds, notes, and shares are bought and sold.

There is two stock exchange in India.

  1. National Stock Exchange (NSE).
  2. Bombay Stock Exchange (BSE).

How to buy company’s share?

To make money from the Share Market, you will have to buy the shares at the right time and sell them as soon as they are worth the price, if you are new to the stock market, then buy smaller small shares and move slowly forward.

Before buying a stock, it is important that you have complete knowledge about it. Just like if you bought 10 thousand shares of a company and had a rate of 10 rupees then you would have to pay a total of 1 lakh. Now if its price increases by 1 rupee every share, then you will get the benefit of 10,000 and if one rupee is reduced on every share If you go then you will have a loss of 10 thousand.

As you need Saving Account to deposit money in the bank, Demat Account is compulsory to keep the purchased stock in the Share Market. You have to open demate trading account which you can easily open with any bank, company or broker

You can buy shares in 3 ways:

Broker

To invest in the Share Market, you can not buy shares directly from the Stock Exchange so you need a broker who also guides you and your work becomes very easy. However, many brokers are available in the market but some of them are selective – HDFC, Share Khan, ICICI and so on.

Indian public offerings (IPO)

If you want to buy a share at the IPO, register with an experienced stockbroker and wire funds to your brokerage account.

Online

You can open a Demat trading account by downloading software at home. Being a Trading Account, you can buy any stock online by going online which is very easy. If you do not have a trading account, you have to call and buy shares, but because the price of any stock in the stock market varies every second in the working hours, therefore, the purchase of shares by calling is not known for the exact price of the stock and If you are buying a lot of shares then this is not good for you, hence trading account is important.

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