Share Market how to start - basic knowledge in 5 minutes

Share market how to start


What is the share market?

Share Market Basic Idea or What is the stock market? and how the stock market works? how to buy the shares? Learn more in Equity Share Market how to start Guide in 5 minutes.

Whenever we imagine a market, our mind becomes an image of our nearest place where there will be many shops or a mall where you can go shopping. But for the beginners, the stock market is not such a market. The buying and selling of shares in the stock market are done entirely by the computer in an automated logical manner. Any buyer for buying shares, he is ordered on the exchange by his broker and after a moment's notice, the automation of the deal is matched with seller bid price according to the pending orders.

What is the stock market?

In the working hours of the stock exchange, brokers place their order in their order terminal for their customers. In return, the broker gets brokerage or brokerage.

We can say that there are three broad categories of stock exchanges: Stock Exchanges, Brokers and Investors. Brokers are members of the stock exchange and only they can trade in that stock exchange. Clients can not go directly and buy or sell shares, they only have to go through the broker.

There are mainly BSE ie Mumbai Stock Exchange and NSE, which are the National Stock Exchange on which shares are traded. BSE and NSE are the world's largest stock exchanges. Most of the companies whose shares are traded in the market are listed on both the stock exchanges but it may also be that a company is listed on one of these two exchanges.

Majority of the country's major banks or their subsidiaries and other large financial companies work as brokers in these exchanges. Customers can go to these broker companies and open their account with the broker by giving information about their demat account. Thus the demat account of the customer gets linked to the account of the broker and the shares purchased or sold are transferred from the customer's demat account. Similarly, the customer can also link his bank account with the broker's account, from which the shares purchased or sold.

Money is transferred to the customer's account. The shares purchased by the customer remain in their demat account in an electronic form whenever a company declares the dividend, then the amount of dividend is reached in the bank account linked to the demat account. Similarly, if the company announces bonus shares, bonus shares also reach the shareholder's demat account. When the customer sells the shares, that share transfer is transferred from the same demat account.

To do business in shares, an investor must have knowledge about share Market how to start by open a demat account, a trading account with the broker and a bank account linked to it. Many banks also offer the facility to open three in one accounts. Most Brokers House also provides you with the convenience of online stock trading, apart from this, you can also order your call.

At last, you should read
Unknown said...

very informative and very good post keep it up

Ella lily said...

The web site is lovingly serviced and saved as much as date. So it should be, thanks for sharing this with us. free stock course