How to trade in Stock Markets?
When i started my journey in stock market, even i had same set of Questions.
What is Stock Market?
How do we trade in stock market?
Many other might have these questions. Here are the some general FAQS about stock markets.
Stock Market is a place where shares of companies are bought and sold. A Company has to list with stock exchanges to make its shares available for trading.
If one need to trade in stock market, he can either trade directly by becoming a broker or can trade through the broker. Brokerage charges should be paid.
You can become broker by paying the membership fees to stock exchanges.
You can trade through broker by opening a Demat acocunt with broker. Demat account is account where all your purchased shares are kept.
To apply for demat you can visit any broker and open the account. Once demat account is opened you can start trading in stock market.
Do we have any conditions before investment? Do we have a minimum or maximum limit?
What in case broker gets out of the business, our shares in Demat account are safe?
There is no upper or lower limit condition attached to investment. However the brokerage charges may affect your decision to invest in bulk or small amounts.
If broker firm is closed, nothing to worry. Demat accounts are managed at NSDL (National Securities Depository Limited) and you are the owner of shares you have in your demat account.
Demat account is only a facility where your shares in encrypted form are kept. You own the demat account and not the broking firm.
Infact many times if do intraday, your shares will not be deposited in Demat account. It requires minimum 2 days to get shares in Demat Account.
One need to open the demat account with broker to avail the trading facility.