Beginners Guide to Make Investment in Stock Market

By | September 25, 2021

A stock market is a place where the companies offer ownership of their company’s shares. Investors, buyers, or sellers can trade in different types of securities, commodities, holdings, or other financial instruments. 

The stock market is considered as an additional way to grow wealth and to be financially stable. Before stepping ahead over the path of the stock market individuals should know the behavior of the market. It is volatile and fluctuates over time.

What should you have to invest in the stock market?

To start trading in the stock market or to do exchange activities an individual has to comply with a few requirements that are mentioned:

Documentation requirement 

The importance of an identity certificate or card is required across all the activities or workstations so as in the stock market. To trade in stock, apply for a PAN card if you don’t have one. You can apply for it from any KIOSK center.

  • Adhaar Card is compulsory.
  • To verify bank details you should have a canceled cheque in which you have signed in an account.
  • Residential address proof is required.
  • Income document 
  • Photograph

Bank account

To do stock trading a person needs to submit the canceled cheque at the time of documentation work. To give a canceled cheque a person should have an active bank account in an authorized bank. When a bank account is linked to your trading account you can easily purchase and sell out shares over time. There are many broker banks that offer advanced trading facilities and allow access to trade and store the securities from one single account.

DEMAT account

To do trading, you don’t need to step outside of your home, you can do it on your mobile or computer using the internet. The DEMAT account makes the trading activities comfortable and easily accessible. The DEMAT account offers the accessibility to keep holdings and securities in electronic form. Whether it is an ownership or shares of any company, government securities or private securities, mutual funds, bonds, etc. You can open the DEMAT account on your own mobile.

Trading account

As Demat accounts are significant to keep multiple forms of holdings and securities safe and easily accessible,  we also need a trading account in the share market to exchange, buy and sell securities and holdings. To be an active stock market investor you must have both accounts to trade and hold the securities and holdings.

Invest in Primary and Secondary stock market| Beginners

Either a person can invest in the primary share market or in the secondary share market.

Primary share market investment process

To trade in the primary share market a person should have a trading account and Demat account. You should do trading via IPO’s. 

  • First, the shares are offered by companies and then inventors send their applications once this process is completed, the company will tally the allotted shares, usable, and demand. 
  • To do IPO investment you can use the net-banking method, The amount will be deducted according to the allotted shares. You are eligible to do trading within a week.

Secondary share market investment process

  • Beginners should apply for a Demat account to buy new shares and sell the available shares. The Demat account needs to link to your bank account. If you don’t have one, apply for a trading account.
  • Once you have created a trading account navigate to available shares you are interested in buying or selling.
  • You should have an ideal amount to buy the shares. Similarly, if you want to sell the shares check the count.
  • Determine the right price.
  • Wait for the response of buyers’ or seller’s over the request.
  • Perform transactions of money or share transfer.

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