Stock Investment is one of the most popular sources of generating wealth in the world. You might have heard several inspiring stories of stock investors, inspiring rags to riches stories. The beauty of the stock market is that it treats every investor according to its approach. In this article, we will tell you how to invest in the share market in India for beginners.
What is Share Market?
A guide to the stock market in India is incomplete without understanding what the share market is. A share market is a place where a company issues shares publicly and is traded. Share is the document that validates your ownership in a company and you have the authority to sell shares to others. To issue the exchange publicly a marketplace has been developed for investors to buy and sell their stocks.
What are Shares?
a company running a regular business, making profits, and looking for ways to expand the business. If it decided to launch a new product that needs a huge investment, factory installation, and a skilled workforce. The company need not have the required funds to create this setup. One way is to add partners by asking them to contribute a good amount of money toward the capital. The company is legally bound to sell its shares when it decides to raise capital. It issues shares to people. Your share will determine the percentage of holding you have in the company. So if the company is worth 1 lakh and you hold shares worth rupee 10000 then you are a 10% partner in the company.
Tips and techniques to Invest in the Share market in India for beginners.
- Document Required for investing in the stock market.
- Pan Card of the investors.
- Adhar card of the investors.
- Name of the investors on the canceled cheque from an active bank account.
- Proof of a residence based on a list of documents of investors.
- Document detailing that investors earn an income.
- Passport size photo of the investor.
- Demat account
An account that holds the share in the name of the account holder is a Demat account. It is an electronic house of your share. Several banks also offer Demat accounts to their investors. Demat account will be opened without any hassle and also carried out from your home.
- Trading account
The trading account of the investor is in which you buy and sell securities that investors wish to sell and purchase. Any beginner who wishes to invest in the stock market should have a Demat and Trading account. The Bombay stock exchange and the National stock exchange both accept Demat accounts for trading.
- Linked Bank account
As you wish to invest in the stock market then you will buy and send it over a period. For this step, you need a bank account that needs to be linked to your trading account. The bank account is mandatory by most stock investors with whom you will choose to open a trading account like Demat. In this article, we have shared steps on how to invest in the share market in India for beginners.