How to start investing in the Stock Market in India
Hello all, I hope everyone must have heard the word "Stock Market", but majorly if we talk about this, only a few percent of people are aware of the Stock Market and investing in the Indian stock market. So in this article, I am going to describe the Stock Market India a simple way.
Apart from this, I am starting a series of Stock Market, in which you can find the relative topics to Stock Market which will help you to invest in the Indian Stock Market.
The topic which we are going to discuss in the article are mentioned below, which will help you understand the Indian Stock Market.
[ Also read, Who are Brokers in Share Market?][ Also read, What are Sensex and Nifty]How to start investing in the Stock Market in India : All you need to know
1. Introduction to Exchange (markets in which products are bought and sold)
What is the Share Market/Stock Market?
Share market is the marketplace where you meet buyers and sellers for trading in shares and stocks. Companies that contact the share market start selling their shares and the market issues the shares for trading.
It is a place where the process of buying and selling equities takes place. You can only buy those shares which are listed on the stock exchanges, like NSE/BSE or MCX for buying or selling the futures of commodities, bonds, and securities.
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The investment and the trading are not done directly with the exchange, you can do investment/trading with the help of sub-brokers and for that, you have to open your Demat + trading account to enter the Indian Stock Market.
Stock Market India
- Zerodha
- Upstox
- Angel Broking
- Alice Blue
These are the discount brokers in India which means the brokerage will be far less than the full-service brokers. The list of full-service brokers is mentioned below
- ICICI Direct
- HDFC Securities
- Kotak Securities
- SBI Securities
- Axis Direct
Top Exchanges in India are
- NSE ( National Stock Exchange of India Ltd)
- BSE (Bombay Stock Exchange Ltd)
- MCX (Multi Commodity Exchange) (Future of Gold, Silver, agriculture product, crude oil, metal)
- NCDEX (National Commodity and derivatives Exchange)
- More than 20 exchanges are in India
STOCK OPTION, FUTURE, ETF, MUTUAL FUNDS, INDEX ETC
NIFTY (TOP 50 COMPANIES)
STOCK OPTION, FUTURE, ETF, MUTUAL FUNDS, INDEX ETC
SENSEX
PRECIOUS METALS, BASE METALS, ENERGY, AGRICULTURE
ONLY FUTURES
What are the advantages of stock markets?
One of the obvious advantages is that they allow firms/corporations to secure long-term finance that will allow them to undertake new projects and grow. The bigger benefits however accrue to investors, who can participate in the growth of these companies by investing in their shares.
- The market allows investors easy entry and exit from the shares of any company at a price determined by demand and supply.
- Besides the ability to buy and sell, investors get access to all the relevant information about the listed companies to make informed decisions. Stock exchanges and market regulators require listed companies to meet strict disclosure and regulatory requirements.
- Stock exchanges also assure investors of a reliable and secure clearing mechanism. This way, investors are sure that the stocks they purchase will be delivered to them, even if the counterparty to the transaction does not deliver.
