What is the stock market?
The stock market is a platform for markets and exchanges where the daily or periodic activities of buying and selling of shares of publicly-held companies occur. These are the financial actions that are performed via institutional formal exchanges or over-the-counter (OTC) market which function under a certain set of regulations formed by the governing authorities like SEBI in India.
Types of investments in Stock Market
There are various types of investments to be carried out in the stock market-
One of the popular investment products in stock market is IPOs. IPOs (Initial Public Offerings) are the first sale of shares by a privately owned company to the public and are a good option for starting an investment. When a company sell its shares in primary stock market for the first time it is called as Initial Public Offerings. After completion of the process and allotment of shares the company gets listed and can start selling its shares in secondary market.
Investing in Stocks: Build your portfolio to grow your wealth
Investing in stocks is an excellent way to achieve the growth you have in mind. You need to set your financial goals and start investing in different investment products. You also need to determine the period for which you want to keep your investment in a particular stock. An investment of 7-10 years offers you good returns. Identify and decide whether you want to invest for a short term or long term.
Investment Horizon - Short Term & Long Term
IPOs are a great tool of investment for people who are looking for long-term investments and are the best way for a person who wants to be associated with a fast-paced company from the beginning of company’s growth journey. The long-term investors make the most out of the stock market even during the volatile periods of the market. As they see the market downturn as an opportunity of more stocks on sale. These days almost everything is available for buying online but what stock, how and when to buy is the trickiest question of all. There are various stock market learning courses available online. One, really nice platform that I came across recently was 5paisa School. It teaches in depth about all the share market nomenclature, basics of stock market, trading necessities and all you need to know about Indian Share Market.
How to start investing in stock market?
Before starting your investment journey, there are few important pointers that you need to consider for a healthy kick-start onto this roller-coaster ride.
1. Deciding on how you want to invest
2. Opening a Demat account
3. Understanding the Investment Options
4. Focus on long-term investment
5. Managing the investment portfolio regularly
Domestic Retail Participants-These are individuals who transact in the markets.
Stock Market Investment Process
A. Select an intermediary
You need to select an authorized bank or the financial institution or broker, which you want to open an account with.
Submission of photocopy of required details like PAN, AADHAR, photograph and other relevant documentation.
Upon successful verification of the documents submitted, the Demat account is opened. You receive a unique Client ID from the intermediary you selected. This will help you to get access to your Demat Account online.
Now, enjoy doing a thorough research of your preferred segment of business and start investing into them.