What is the stock market?
If we talk about investing in the stock market (Sensex stock market) the trend of people in India has increased a lot in the last 4 to 5 years, and there are some main reasons behind the attitude of people in the stock market-
(1) The number of users using internet banking, mobile banking is increasing
(2) It is possible to buy and sell stock in real time through mobile
(3) Rising Stock Market Index - Sensex above 60 thousand, and Nifty above 18 thousand
(4) Information about the stock market will be available on the mobile internet,
(5) High profit potential from other investment avenues (bank deposits, gold)
Now in this case, if you also want to start investing in the stock market, but you do not understand how to start investing in the stock market, after reading this post thoroughly, you can easily start investing in your stock market.
In this post, we will learn about these 2 important things to start investing in the stock market -
(1) What documents do you need to invest in the stock market?
(2) What type of account do you need to open to invest in the stock market?
What documents do you need to invest in the stock market?
To invest in the stock market, first you need to have a PAN card, the full form of PAN card is a permanent account number, and it is a 10 digit account number, an important document issued by the Indian Income Tax Department and PAN number is required for any financial transaction in India. .
And if you haven't created a PAN card yet, you can create one, you can also send an online application to create one on NSDL's website.
KYC Document (Aadhar Card Link) :
Nowadays KYC is also done from time to time for bank accounts, the full form of KYC is - know your customer, and under KYC you are asked for updated KYC document of Aadhaar card and other address proof.
Internet banking :
To pay for any stock or shares you buy, you have to pay your broker, and your broker will transfer your money to the seller of the shares, and the shares you buy will be credited to your demat account.
In order to pay your broker you will essentially need an online internet banking account through which you can pay your broker, to record all your payments, an account called sharebroker trading account is said to be used. Money must be credited to the trading account, and on sale of shares, your broker will deposit money in this trading account in exchange for shares.
What type of account do you need to open to invest in the stock market?
Neither you nor I can buy or sell stock directly from a stock exchange (BSE or NSE), as long as the stock exchange is operated by a stock broker to buy or sell our stock,
And so to buy shares or shares, we need a stock broker to invest in the stock market, a stock broker is an agency authorized to buy and sell shares in the stock market, such as - Sharekhan, using Angel Broking, ICICI Direct, and other stock brokers, We can buy and sell stocks or shares, and when we go to a stockbroker and start investing in the stock market, he opens two accounts for us.
Demat account :
To keep the purchased shares with us, we essentially need a demat account,
Shares or shares purchased in this account are credited electronically, and debited from this account upon sale,
In this account we get a user ID and password, with which we place orders to buy or sell stocks using stock broker software or system,
Keep in mind :
The fee that a stock broker charges for its services is called brokerage. Whenever you choose a stock broker, compare the services offered by the stock broker and its brokerage with other stock brokers in the market so that you pay less fee and you get better service.