How To Buy Shares For Beginners | How To Invest In Share Market For Beginners

Don't know How To Buy Shares For Beginners ? Don't know How To Invest In Share Market For Beginners ? then this blog is for you! learn how to buy your first stock online. Stock Market for Beginners is the introductory Blof for everyone who is interested in investing in the share market. To buy a stock, you'll want to evaluate the company, decide how much you want to invest and place a stock buy order. You can buy stocks online, through a stockbroker or directly from certain public companies. The share is a document certifying your ownership in a company so that you can sell it to someone for a price.

The process to buy shares : Select an online stockbroker : The easy method to buy stocks is through an online stockbroker. So after opening and funding your account you can buy stock through the broker website in a few minutes. The next method is by using a full-service stockbroker. Opening an online brokerage account is easy as setting up a bank account and completing an account application. They will provide proof of identification and choose whether you want to fund the account by mailing check funds electronically.

Research stocks which you want to buy

After the setup and funding of your brokerage account dive into the business of picking stocks. The best place to start is researching companies you already know from your experiences as a consumer. Keep the objective as simple as you’re looking for companies of which you want to become a part-owner. The online brokers will provide tutorials to explain the use of tools and basic seminars on how to pick stocks.

Decide how many shares to buy :Don’t take the tension to buy a number of shares with stock all at once. Start purchasing a single share to get a feel for what it’s like to own individual stocks. The new stock investors want to consider fractional shares offering from an online broker that allows you to buy a portion of a stock rather than a full share. So many brokerages offer a tool which converts dollar amounts to shares.

Choose your stock order type :Don’t put off all numbers and nonsensical word combinations on your broker's online order page.

Optimize your stock portfolio : First stock purchase mark at beginning of a lifelong journey of successful investing.

How to invest in the share market

1) Find a good broker online :A broker is compulsory to be registered and licensed by the Securities and Exchange Board of India as it retains the right to allow you to buy and sell shares over the stock exchange. The brokers can be individuals or online agencies.

2) Hire a Stockbroker Some people are authorized by the stock exchange to execute the buying and selling of shares. These are called stockbrokers /brokers. The broker assists in buying the stocks and fulfill formalities to enter in share market.

3) Know what a depository participant isThe depository serves as a connection between shareholders and companies listed on the stock exchange. There are two depositories in India as Central Depository Services Limited and National Securities Depository Limited. It is the broker responsible for the eventual transfer of shares.

4) Bank accountThe bank account is compulsory to link with your Demat and Trading account. So when you buy shares the amount of money is debited from your bank account and shares are credited to your Demat account. When you sell shares your bank account is credited with an amount of money, and the account is debited with the number of shares. To be able to receive shares in your Demat account and money in your bank account you must have a bank account linked with your Demat and Trading account for a smooth transaction.

5) UIN : You should check the need for the UIN number for trading in the share market. UIN number is needed if you plan to be involved in a single transaction of Rs.1, 00,000 or above. If UIN is not there you won't be able to do a transaction which is equal to or greater than Rs 1 lakhs.

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