trading in stock

We often see the trading in stock market news in newspaper and in the television media. Today market is bullish or Stock market fall. We see the sentiments and feelings of people. The trading in stock market is the major role player in the economy of the country and we can measure the performance of the different sectors in the form of the index. By knowing the share market you will glimpse the performance of difference sector.

 

So The stock market or share market is important to know in order to grow your wealth. The World’s richest person Warren Buffet makes his wealth by investing in the stock market and many Billionaire had created their wealth through the stock market.  So the stock market can be game changer for your life.

 

Lot of people don’t know about the stock market. The trading in stock market is the place of your wealth management and the place where you can grow your money in multiple times. It is true that the more you take the financial knowledge, the more the chances of you will become rich. In the same way, More you know about the stock market, more is the chances to grow your wealth.

 

What is the Stock Market

 

For buying the flower, we went in the flower market, for purchasing the cloths we went to the cloth market similarly for buying the stock we went in the stock market. The stock market is not like the market as mentioned here. For buying the flower you will went in the flower market and the flowers are arranged for display. On the other hand for buying the stock you don’t need to go in the flower market and buy the stock, You will buy the stock by online.

 

Definitely you can buy the stock through online but you need to buy it through the broker. In other word you cannot buy the stock directly from the stock market, you need to choose the stock broker. There are total 519 stock brokers.  The numbers are huge so it will be difficult to choose the stock broker who offers the best services.

So here the list of top 10 stock brokers, it will help you to choose the stock broker.

Sr. NoBroker  NameYear of Establishment
1Angel Broking Private Ltd1987
2ShareKhan Ltd2000
3Axis Securities2006
4Kotak Securities1994
5Motilal Oswal Securities Ltd1987
6Karvy Stock broking Ltd1985
7Icici Securities Limited2000
8Hdfc Secutities Limited2002
9Zerodha2010
10IIFL1996

 

You can compare the brokerage offered by this brokerage firm and choose the appropriate broker who suits your need.

 

For Trading in the stock market you need the DEMAT account. The DEMAT account is the stock account which is link with your bank account.

 

What is DEMAT account

 

The Demat account functions like bank account. In the demat account your securities protected by your demat number. You can buy the stock through online broker software that will provided you after choosing the broker, the purchased stock transferred in the demat account electronically.

Also the securities hold can be debited or credited from your demat account. Demat account is must to trade in the stock market. The Demat account can hold your shares,  Bonds, government securities, Mutual funds etc. In the Demat account the physical share are converted into electronic form and credited to demat account.

 

After Selecting the broker, You have to submit the documents to the broker, the following documents required to open the Demat account.

 

1) Pan Card

2) Adhaar Card

3) Cancelled Cheque

4) Two Passport Size Photograph

First you have to fill the Demat account Opening form. You have to enter your personal details, address proof, KYC details and attach the mentioned documents to this form.

 

Then the form goes to the brokerage house and after the complete verification, the login Kit sent to your home address which you mentioned in the demat account opening form. The Kit includes trading account Login Id and password, brokerage rates, broker website navigation and user guide.

 

The user guide includes step by step information from login to the buying and selling of the shares on the stock market.

 

Now we let’s discuss about the main topic of this article. That is the Share. 

 

What is Mean by Share

 

The owned capital of a company, when divided into a large number of small parts having equal face value, each such part is called as share.

The share is a unit by which the share capital is divided. Share is small unit of capital of a company.

In other words, the total capital of the company is divided into small parts and each part is called ‘share’. The capital of the company is divided into large number of shares. It facilitates the public to subscribe the capital in smaller amount.

The person can purchase any number of shares as he wishes. A person who buy share of the particular company is known as shareholder of that company.

The companies raise the capital for the expansion of the business or starting the new business. This requires the large capital. In order to get this capital the companies has two options. One is to take the loan from the bank and second to raise the capital through share by means of public offering. The company who raise the capital through stock market issue the price and quantity of shares.

 

Basically there are two indices that are called as BSE and NSE. BSE stands for Bombay stock Exchange and NSE stands for National Stock Exchange.

 

There are around 5000 Companies listed Under BSE and around 1600 Companies are listed in NSE.

The Stock market Works only 5 working days a week. The stock market remains Close  in Saturday and Sunday. The working hours of the stock market is 6 hours per day.

The stock market opens at 9:00 AM at the morning and Close at 3:00 PM.

Next we discuss the settlement period of the stock market. The settlement period means the time period between which you sell.

 

 

 

trading in stock