Basic information Share Market - 2020 [Beginners Guide]

Basics information Share Market - Beginners Guide


Basics of stock market Explained

 Everyone wants to invest in the stock market today, but they don't know how to invest in the stock market. What is required to invest in the stock market, what documents are required, where to invest in the stock market, where to invest in the stock market, where to invest in the stock market. Today we will share with you some basic information about the stock market. 

We wrote a post about the stock market before you can see that post once, and you'll get some of your own news about the stock market. 

What is the share market?

Different companies need money to grow their business. Then the person registered his company on the stock market, and sold his company's shares to the public. And he got the money to grow his company.

Example: For example, a man named X has a company called ABC, and needs another $4 million to grow that company. The man then registered the company on the stock exchange, ABC, and sold his company's shares to the public for 4000×1000.

Now you're thinking that a company can register on the stock exchange, but not that. Because the company that wants to register on the stock exchange must first go to the company where the stock exchange is registered (each country has separate entities to register the stock exchange). The company, after verifying the company, if it seems that the company is eligible to register on the stock exchange. Then the company can sell its shares on the stock exchange.

 You need to open a demat account to invest in the share market. 

How to Open Demat Account

You need to have a demat account to buy shares in the stock market. Because you can't invest in the stock market without a demat account. 

Demat account you can open both offline and online. You need to have some documents to open a demat account. 

Documents required for opening a demat account

You must be at least 18 years old to open an egg account and invest in the stock market. If you are not 18 years old and you want to invest in the stock market, you can open a demat account in the name of your family or someone you can trust. 

Proof of Identity (POI): List of documents admissible as Proof of Identity:

  • PAN card with a valid picture.  This is a mandatory requirement for all applicants.
  • Unique Identification Number (UID) (Aadhaar/ Passport/ Voter ID card/ driving license)

Proof of Address (POA): List of documents admissible as Proof of Address:

  • Voters' ID card /Ration Card /Passport / Registered Lease or Residence License / Flat Maintenance Bill / Insurance Copy.
  • Telephone Bill (landline only), Utility bills like electricity bills or gas bills - not more than 3 months.
  • Bank Account Statement / Passbook - Not 3 Months Old.
Note: Documents with an expiration date should be valid on the date of submission.
[Separate documents are extracted for each country]

You can open a Demat account after you submit all these requirements.

You can now open demat accounts online with many platforms online where the share market is sold and bought. 

Best Online Trading Site

  1. Zerodha - Overall Rating - 9.14 / 10
  2. Angel Broking - Overall Rating - 8.88 / 10
  3. IIFL / India Infoline - Overall Rating - 8.74 / 10
  4. Motilal Oswal - Overall Rating -8.60 / 10
  5. Sharekhan - Overall Rating - 8.50 / 10
  6. Upstox - Overall Rating - 8.48 / 10
  7. ICICI Direct - Overall Rating -8.44 / 10
  8. Edelweiss- Overall Rating - 8.44 / 10
  9. HDFC Securities- Overall Rating - 8.42 / 10
  10. 5Paisa - Overall Rating - 8.38 / 10

 When invest in share market, here are the ways to invest:

  1.   Understand your investment needs and make decisions accordingly.
  2.  Set your goals and plan your investment strategy accordingly.  Look for stocks that may be aligned with your investment objectives.
  3.  Enter the market at the right time.  Buy the stock at the lowest cost and sell especially when the market is weak and when there is a rally.  It will yield higher income
  4.   You should contact the required broker while trading.  Make sure the broker acts accordingly and cross-checks to avoid any errors.
  5.   Monitor your portfolio regularly.  Instead of putting all the eggs in one basket, mix the best possible storage.  This helps to avoid unnecessary risks.
We share this information about the stock market with you so you can get a basic idea about the stock market. We will provide you with more information about the stock market in the next post. 

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If you want to know more about the share market, and if you want to know how to invest in the share market, contact us. We'll try to solve your problem.

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