How to invest in shares market

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

7 Steps On How to Start Investing in Share Markets in India (even with 10,000 investment)

All rights reserved. For reprint rights: Times Syndication Service. Markets Data. Market Moguls. Expert Views. Technicals Technical Chart Visualize Screener. Commodities Views News.

Forex Forex News Currency Converter. Market Watch. Pinterest Reddit. By Saloni Goel. A person cannot go directly to the stock market to buy or sell shares. Buying and selling of stocks has to be done through brokers. In order to be able to invest in share market in India, the following procedures need to be followed. Besides this, the government has mandated six-month bank statement along with a cancelled cheque, under the new rules to open a demat account.

Get a broker A person cannot go directly to the stock market to buy or sell shares. They are individuals, companies or agencies registered with and authorised by Sebi to trade on the stock exchanges. Brokers will charge a brokerage fee or brokerage for the assistance they provide. Get a demat account Once you have a broker, the next step is to open a demat and trading account.

This account will hold the stocks that you have purchased and will reflect them in your name. Shares cannot be held in physical form and they form part of the dematerialised or demat account. Buying and Selling In order to buy or sell shares, one needs to inform the broker the quantity to be bought or sold along with the price at which you wish to carry out the transaction.

While investing in the share market, these are the ways to invest: 1. Understand your investment requirement and take decisions accordingly. Decide your goal and plan the investment strategy accordingly. Find out the stocks that are likely to align with your investment objectives. Enter the market at the right time. Try and buy the share at its lowest cost especially when the market is weak and sell when it rallies. This would yield higher returns. While trading you should communicate the requirements to your broker.

Ensure that the broker does accordingly and cross-check to avoid any errors. Monitor your portfolio regularly.

Instead of keeping all eggs in one basket, have the best possible mix of stocks. It helps to avoid unnecessary risk. Read more on investment. Share Market. PAN card. Add Your Comments. Follow us on. Download et app. Become a member.

To see your saved stories, click on link hightlighted in bold. Fill in your details: Will be displayed Will not be displayed Will be displayed.

Share this Comment: Post to Twitter.

Get The Support & The Tools You Need To Succeed. Trading Is Risky. Invest in the World's most Popular Assets. Start Trading Now with Our Free Demo Account.

Taking control of debt, free debt advice, improving your credit score and low-cost borrowing. Renting, buying a home and choosing the right mortgage. Running a bank account, planning your finances, cutting costs, saving money and getting started with investing. Understanding your employment rights, dealing with redundancy, benefit entitlements and Universal Credit. Planning your retirement, automatic enrolment, types of pension and retirement income.

We invest in shares to build our wealth in the long run. While some people view shares to be a risky investment, many studies have proved that putting your money in the right shares for a long period of time five to 10 years can provide inflation-beating returns — and be a better investment option than real estate and gold.

All rights reserved. For reprint rights: Times Syndication Service.

How can I invest in share market?

Studies have proved, time and again, that shares or equities are one of the best long-term investments in the financial market place. They tend to outperform government bonds, corporate bonds, property and many other types of asset. Share prices can go down as well as up so buying shares is not without risk, but over the long term, they can generate good returns. If you want to double your money in a year, for example, buying shares is not the best way to do it. But if you want to invest for ten or 20 years, shares may be a rewarding investment.

Investing in shares

Learning how to invest wisely and with patience over a lifetime can yield returns that far outpace the most modest income. Nearly every member of the Forbes wealthiest Americans made the list in because they owned a large block of shares in a public or private corporation. It all starts with understanding how the stock market works, what your investment goals are, and if you can handle a lot or just a little bit of risk. You might have to settle for lesser results if you don't have much time or interest in managing your investments. Stocks are equity investments that represent legal ownership in a company. You become a part-owner of the company when you purchase shares. Corporations issue stock to raise money, and it comes in two variations: common or preferred. Common stock entitles the stockholder to a proportionate share of a company's profits or losses, while preferred stock comes with a predetermined dividend payment. You can profit from owning stocks when the share price increases, or from quarterly dividend payments. The stock market works like an auction.

Stock investing, when done well, is among the most effective ways to build long-term wealth.

Investing is a way to set aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labor in the future. Investing is a means to a happier ending. Legendary investor Warren Buffett defines investing as "…the process of laying out money now to receive more money in the future. Before you commit your money, you need to answer the question, what kind of investor am I?

Why invest in shares

Achieving this is not easy, but you have to start somewhere. Investing in shares online is one of the best ways to reach this goal. And the good news is you that can do all of this completely online, from the comfort of your own home. In this article, we will explain jargon-free, in plain English, how to buy shares in a company. People usually ask about how to invest in a company because they either want to make money profits or gain some trading experience. Both are possible, and can also be fun, if you select the right stocks. You can make a profit if your share pays dividends or its price increases. This is one of the best long-term investments. Have your friends ever talked about investments or the stock market, and you had no clue what any of it meant? Don't worry, once you start investing and learning more about it, this won't happen again.

How to Start Investing in Stocks: A Beginner's Guide

They bagged big profits because of their years-long experience with stock markets. I did not make any profits because I was investing in stocks after listening to the stock tips from brokerage houses and so-called experts on TV channels. Everyone from a brokerage house to financial websites to experts on TV channels makes you believe that investing in stocks is very complex like rocket science. After all, if you know how to select stocks on your own, then how would they make money. Disclaimer: I do not recommend any particular stock. The stock names mentioned in this article are purely for showing how to do analysis. Take your own decision before investing. I have recorded a video on how to start investing in the share market for beginners.