If we talk about investing in the stock market, then in the last 4 to 5 years, the trend of people in India has increased a lot, and there are some main reasons behind the trend of people in the stock market-
Now in such a situation, if you also want to start investing in share market, but you do not understand how to start investing in the stock market, then after reading this post completely, you can start your stock market investment easily. can do from.
Five Important Thing You should Know before investing
1. What documents do you need to have for investing in the share market?
a) PAN CARD
For investing in share market, first of all you have to have a PAN card, and this 10 digit account number is an important document issued by the Indian Income Tax Department, and PAN number is necessary for any financial transaction in India. It happens, And if you have not yet made a PAN card, then you can get it made, you can also send the application online to make it on the website of NSDL.
b) KYC DOCUMENT
Well nowadays KYC done for bank accounts also from time to time, the full form of KYC is – Know your customer, and under KYC you asked for UPDATED KYC DOCUMENT of AADHAAR CARD and other ADDRESS PROOF.
c) INTERNET BANKING
To make payment for whatever stock or shares you buy, you will have to pay your broker, and your broker will transfer your money to the seller of the share, and the shares you bought will be deposit in your demat account.
You will mandatorily need an online internet banking account to make payment to your broker, through which you can make payment to your broker, to record all your payments, the stockbroker opens an account called trading account says.
To buy a stock, you have to first deposit money in this trading account, and on selling the stock, your broker will deposit money in this trading account in exchange for the share.
2. What type of account do you need to open for stock market investment?
a) Select Stock Broker
You cannot buy or sell stock directly from the stock exchange (BSE or NSE), the order to buy or sell our stock till the stock exchange is execute by a stockbroker.
And so to buy stocks or shares, we need a stock broker to invest in the stock market, a stock broker is an agency that is authorized to buy and sell stocks on the stock exchange.
With the help of a stock broker, we can buy and sell stocks or shares, and when we go to a stock broker to start investing in the stock market, he opens two accounts for us.
- Demat Account :- In order to keep the purchased shares with us, we necessarily need DEMAT ACCOUNT,
The shares or stocks purchased in this account are credit in electronic form, and are debit from this account on sale
Trading Account :- Buying and selling of shares done with the help of trading account,
In this account we get a USER ID and PASSWORD, with the help of which we place orders to buy or sell stocks using stock broker’s software or SYSTMEM
3. What is the minimum amount you need for stock market investment?
There are many questions in the mind of a new investor who starts investing in the stock market, in which one of the main questions is-
What is the minimum amount he should have, and does he need to keep a minimum deposit in the stock market like the minimum balance in the bank account?
So I assure you that you do not have any kind of minimum money limit for investing in the stock market, you can buy 100 rupees 500 shares, whatever amount you want to buy, And minimum money of any kind is require, there is no such limit.
Second, there is also a question in the mind of some people whether there is any minimum balance to kept in DEMAT ACCOUNT or TRADING ACCOUNT.
So here also I would like to make sure that – First of all you should understand that only shares or stocks are deposit in DEMAT ACCOUNT, not money.
So there is no question of keeping more or less money in DEMAT ACCOUNT.
On the other hand, TRADING ACCOUNT, with the help of which you pay the purchased shares to your broker, then you need as much money in your trading account as you want to buy shares.
And here also the stock broker does not say to maintain any minimum account balance in the trading account.