Stock Market – A stock market or share market is a market where you can buy and sell company shares. Shares are the unit of ownership. Buying shares means you are purchasing some percentage of ownership in the company.
The percentage of shares you have bought, the same percentage of ownership you have got in the company, and that person can be a part of decision-making regarding that company. You are a partner in both in profit and loss of the company.
The company never sells all its shares in the share market, the majority of the ownership remains with the owner of the company. The person who has bought the shares from companies can sell their shares to other persons this is called the secondary market or trade market.
How to invest in stock?
Before investing in the stock market, create your budget, and study the entire market. The pros and cons of the stock market, in which sectors to invest in, the company’s profit and loss, whether to invest alone or in partnership, and how much to invest. Nowadays, investing in stocks has become easy through the digital market.
There are several steps that you can follow to invest in the market.
1) Prerequisites things that are required to invest in stocks. A PAN card, whatever shares you buy and sell, the tax will be levied on them, the Demat account where your stocks will be stored, your bank account through transaction will occur, your address proof, your identity proof, your cancellation cheque, and a stock broker.
2) After opening the Demat account, open a trading account that interlinks your Demat and bank account.
3) Now you can log in to the Demat account through the mobile app or web platform. Most of the applications are made for mobile because it is handy to use.
4) Now find out where you want to invest, and determine how much fund you want to invest and in which sectors like technology, health care, and consumer goods. Before investing, keep the profit and losses that you will bear after investing.
6) Before investing, make sure that you have sufficient funds. Also, how you’ll fund it through bank transfer, check deposit, or transfer from another brokerage.
7) Purchase the stock at the listed price with the desired quantity of units. And your share will be credited to your brokerage account.
8) After placing an order the seller will respond from the other side of the trade, once your order is placed, the money transaction is done smoothly from your account to the seller’s account, your trade will be executed and you will receive your stock or shares in your demat account.