What is the need of Stock Market?
If you are doing business, for the growth of it you need capital.
You can get capital from three different areas primarily. First is Bank, which
gives capital in form of loan at particular interest. You have to pay back the
principal as well as interest. Second is from Individual investor or a private
activity, where they buy certain percentage of the company and get share of the
company. But if a company wishes to gain huge amount of capital from thousand
of investors, in that case company needs to go public. Company needs to list
shares on the Stock market. That is where stock market is needed.
What is the Structure of Stock Market?
Indian Stock Market consist mainly of two exchangers. One is
the BSE(Bombay Stock Exchange) and second is the NSE(National
Stock Exchange). The BSE has 6000+ companies while NSE has 1600+
companies listed on exchange. BSE's primary index is Sensex and
NSE's primary index is Nifty. Sensex contains 31 companies and
Nifty contains 51 companies. This shows the direction of the general market
overall the index. Second participant is depositories where
our shares get stored. There are two depository, National depository and
Central Depository. Third Participant are Brokers they are the
one who facilitates the traits between the individual investors and share
market.
How to Trade in Stock Market?
First of all, you need to have a Broker and a Broking account. To
open a trading account, all you need is a bank statement of 6 months, a
cancelled cheque, a photo, aadhar card copy, pan card copy. Account will open
within a week.
How to buy Shares in Stock Market?
As soon as your account opened with the Broker, make sure you
transfer the money from your bank account either via NEFT or online transfer
into your Trading Account. Once the money is into your trading account, you can
place an order via your Broker. Broker would push your order into the exchanges
that to the BSE or NSE. As per your buy price, the stock exchange will try to
match your order with the best seller and when your buy price matches the
selling price then your order get executed. Bought Shares get deliver into your
DEMAT account after T+2 Days.
How to sell a stock in Stock Market?
Place an order with your Broker. Broker will forward your order to
the Stock exchange. Stock Exchange will look for the best buyer and whenever
your price matched with the buyer, the order will be completed. Stock which you
are holding will debited from your DEMAT account. You can get a payout after
T+2 days.
Various ways to place an order with the Broker:-
There are three ways of placing a order with the Broker.
1. Mobile app
2. Telephone
3. Online
Timings:-
Stock Market open from Monday to Friday except public holidays.
Market opens at 9:00 AM and closes at 3:30 PM.
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