Stock Market for beginners, How to join stock market.
Stock Market is a place for Investment. Stock
market is the most sought after Investment in the world and India.
There are many instances where people who invested only in thousands
managed to make millions. The great software boom in India is a great
example. People who Invested in Infosys became millionaires overnight.
Remember the reverse happened too. Beginners must spend some time
learning the basics of the stock market. You will be provided tutorials
on stock market for beginners and also on how to join stock market.
What is a stock market, Beginners guide
Stock
market or a Stock exchange is a place where stocks and derivatives of
the companies are traded. The trade happens and are controlled by the
stock exchanges. There are some important stock exchanges in the world.
For Example NYSE, Nasdaq, London Stock Exchange, BSE, NSE, Euronext
etc.
Stock
Markets are the place for companies to raise money. Companies sell the
ownership of the company in shares to be publicly traded and thus they
raise money for expansion or improvement. Main benefit of an investor
is also this feature liquidity. He can sell his securities immediately
and make money easily compared to real estate or other assets.
Over
years stock markets have re defined the economies of the country. A
raising market is the main economic indicator of a country now a days.
How you make money with stock market.
There
are many ways of making money with stock market. Let us begin by
explaining the possibilities of making money for a beginner. You as a
beginner would like to invest in shares to make money in the long term.
Here you make yearly or every six moths dividends. You will be given a
share of the profit every company makes. It will be proportionate to
the shares you have in your possession. It is called dividend. There is
another way of making money with shares and that is capital
appreciation. Suppose you by a share for 100 USD. After an year it is
valued in the market for 150 USD. The difference of 50 USD is what we
call as capital appreciation.
Join Stock Market.
To
begin investing on shares you are required to follow certain
formalities. You must have a valid Income tax Permanent Account No PAN
and you are required to open a d-mat Account. You are also required to
have a valid bank account.
A
d-mat account is an account very similar to a bank account. You can
open a d-mat account at any banks that offers the service and also
from stock brokers. In India almost all banks starting from Icici,
HDFC, AXIS, Oriental Bank of Commerce, SBI have this facility. There
are brokers who offer this service for free. A d-mat account is where
your transactions are being recorded. Every buy and sell would be
recorded in your d-mat account. It is very easy to open a d-mat account.
Once
you have a d-mat account along with other required steps like bank
account and PAN no you can instruct your broker to buy and sell the
shares for you. A good idea for the beginners shall be to have a
patient understanding broker who would sit along with you explaining
the formalities an various methods of investment available for you.
A
beginner must not go straight in to the day trading or short selling
etc. You have to learn the basics of the market first. You can begin by
selecting some good shares which have strong basics and performance. By
performance we say how much dividend they issue ever year, how strong
is their credit standing etc. There are some rating agencies that give
ratings to the companies. You can also learn the performance and the
capital appreciation of the share over years before you buy. Once you
begin your investment you can learn the various other money making
ideas on stock market one by one.
