How to start Share trading? What is the difference between Share trading and Investment?
I have some questions on Share trading.
Who can Invest in Share Markets?
What is the difference between Trading and Investment in Stock Markets?
Anyone who wants to invest in share markets can do so. You just have to apply for Demat account and start investing or trading.
The difference between Trading and Investment is that in case of trading you buy and sell stocks purely in hope of making profits from movement of stock prices due to some news or demand, supply.
Investment is an art and science. You dont buy a share by looking at financials but you invest in the long term business model of business. You dont invest in company but you invest business of company.
Trade is simply making money by taking advatanges of fluctuation in Demand and supply of Shares. Trading is for short term where you may not take delivery of shares. But investment is made for long term.
Is the delivery compulsory or if its optional what happens with the shares which are not delivered to us?
Do we have to pay any sales tax or stamp duty on buying and selling of shares?
What are the contract notes?
Delivery is not compulsory, you can hold shares in your trading account. It takes 1-3 days for delivery of shares to your demat account.
The shares which are not delivered to us are held in our trading account and we are not the legal owner of the shares unless shares are delivered to our demat account.
Stamp duty is to be paid if shares are bought and sold offline in physical form. However if shares are bought and sold online than no stamp duty is payable.
Contract note is the document to be issued by broker to investors within 24 hours of excuting transaction.
contract notes are compulsory issued as per requirements of SEBI guidelines. Contract notes contain discription, quantity, rates, name of client, date and time etc. of the transaction involved.
Thank you very much for point to point answering the doubts. Hope it will help many new investors who are new to stock markets and are trying to understand the basics of stock market.
I heard there is no stamp duty for sale of shares in DP.
But when i sold my shares which is in holding broker charged stampduty is it okay
You have to convert your shares in electronic mode and there are some charges for conversion. You have to pay NSDL fees and brokerage charges.
Normally the charges wont be more.