How to invest in shares and how to invest in the stock market? We also have to understand what the stock market is, how to invest in the stock market and how to buy shares in India.
whata share market ?
Share market means that where people buy or sell the company's stock. India has two market BSE (Bombay Stock Exchange ) and NSE (national stock exchange)
Stock market history
The credit for establishing Asia's oldest exchange goes to four Gujarati and one Parsi share brokers.
For the first time in 1840, the stock market started in Mumbai with 22 people under a banyan tree.
In 1875, he formed his Native Share and Stock Brokers Association. Also bought an office on Dalal Street.
On 31 August 1957, the Bombay Stock Exchange was brought under the Security Act by the Government of India.
In 1986, the exchange created indexes like SNP, BSE and Sensex
The Dollex-30 was launched on 25 January 2001. This is called the dollar linked version of BSE.
1988 Government of India established Security Exchange Board of India.
In 1992, the Bombay Stock Exchange had crashed due to the Harshad Mehta scam, the then Finance Minister Dr. Manmohan Singh had spoken of the need for another stock exchange to compete for the BSE.
The National Stock Exchange started in 1992.
Within a few days, the NSE would become very popular or it became India's largest stock exchange market.
What is Sensex?
According to Bombai stock exchange (BSE), it has a top 30 company. It is estimated on the basis of how the market permits.
If 30 companies or that do good work, then if the market increases in Sensex, it means that most companies do well.
If the falls, it means that the performance of most companies is poor.
What is a Nifty?
The National Stock Exchange (NSE) has a number of companies which is a top 50 company. How those companies perform. If Nifty increases in the market, it means that most companies perform well.
If Nifty falls in the market, it means that most companies are not performing well.
How to bring a company (IPO) ?
A company needs money. Be it the work of a company like a company wants to grow its own or the company wants to expand its scope. If that company needs money, then the board member of the company decides in the meeting that the price of 1 share will be so much and we will bring so many shares in the market. The company brings 10 crore shares in the market, in which if you buy 10 thousand shares, then in those companies you are entitled to 1% in those companies.
To get listed in the stock market, the company has to enter into a written agreement with the stock market. After this, the company submits all its necessary documents to the capital market regulator SEBI. In SEBI investigation, the company gets listed in BSE / NSE as soon as the information is correct and fulfills all the conditions.
Companies pay dividends to shareholders on quarterly / half yearly or yearly basis to earn profits
How can one start investing in the stock market?
First of all, a demat account has to be opened with the help of a broker. After this, you have to link the demat account to your bank account.
You can open a B account from an online broker. Like,
Zerodha
Grow
Investpedia
Upstock
5paisa
This app works like an online broker. Paperless work is done in 30 minitue. with you
Aadhar Card
Photocopy
Pan card
Bank account
If you do not have an account opened by offline broker, then you go to their office. You will know everything there. That broker will give information according to your budget.
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