Stock Market

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Invest In Stock Market

Stock investments are one of the best ways to generate wealth. The past two decades have seen steady growth in the popularity of stock market investing. However, the fluctuation in the market remains an area of concern.

The investment process differs when choosing to invest in the primary share market as compared to the secondary share market.

There are different types of trading in stock market:

  • Intraday
  • Short Term Trading
  • Long Term Trading
  • F&O Trading

A primary share market investment is made through an initial public offering (IPO). Once all applications for the IPO are received and counted by the company in consideration, the shares are allotted to investors based on demand and availability.

The secondary share market is where stock buying and selling action occurs between investors.

The process of investing in stocks for beginners is simple. It’s crucial to be aware of your investment plans and financial goals before you start investing in the stock market. Having advanced tools, expert recommendations and detailed real-time stock analysis data at your disposal as a beginner in the stock market is a huge factor towards risk minimisation.

Most of the trading in the Indian stock market takes place on its two stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The BSE has been in existence since 1875.3 The NSE, on the other hand, was founded in 1992 and started trading in 1994.

Market Indexes

The two prominent Indian market indexes are Sensex and Nifty. Sensex is the oldest market index for equities; it includes shares of 30 firms listed on the BSE.

Another index is the Standard and Poor's CNX Nifty; it includes 50 shares listed on the NSE.

Market Regulation

The overall responsibility of development, regulation, and supervision of the stock market rests with the Securities and Exchange Board of India (SEBI). SEBI founded in 1992. Since then, SEBI has consistently tried to lay down market rules in line with the best market practices. 

Pre-requisites Before You Invest in Share Market in India

For investing in the Indian stock market, there are a few pre-requisites which is listed below.

  1. Bank Savings account
  2. Trading and Demat account
  3. Computer/laptop/mobile
  4. Internet connection

For opening a demat and trading account , the following documents are required:

  • PAN Card
  • Aadhar card (for address proof)
  • Canceled cheque/Bank Statement/Passbook
  • Passport size photos