How to join the share market..?
How to join the share market ...?
Demat Account : Account where your Shares are stored in electronic form .
Trading Account : An account which is used to place orders for Buying and Selling of shares .
when you buy something:Trading account takes money from your Bank Account (Its already taken from your Bank account and saved in Trading account .you should do this manually) and buys shares and stores it in your Demat account .
When you Sell something , Your trading account takes back the shares from your Demat account and Sells them in stock market and get back the money and that goes back to your bank account (actually you manually transfer it to bank account from Trading account most of the times )
There are different brokers as well as banks who provide Demat cum trading accounts .some are listed below
- Axis Direct
- ICICI direct
- HDFC Securities
- Sharekhan
When you open an account with a broking firm , a broker of the concerned firm negotiates with you on the brokerage amount (ie) the amount that goes to the brokerage firm whenever you are buying (or) selling based on your transaction.This depends on your initial margin amount they ask you to deposit( minimum 5000 Rs) Also it varies for intra-day deals( buying and selling on the same day , usually brokerage charges are less) and Delivery deals ( you buy shares,hold them and then sell after some days ) .
Now when you buy some x shares of ABC company ,you get confirmation mail from your broker at the end of the day saying that these shares are bought at this specified amount.now you own these shares as you have already paid for these shares .Actually, it takes three working days for the transfer to take place to your Demat account and if the broking firm is unable to find those shares for you at the rate which you have placed the order even after three days , then they would return back the money you used for that transaction .( the broking firm here would pay a penalty fee to the exchange as the transaction is a failure)
Before you do open an account ,my suggestion would be to invest atleast two months on learning basics of stock market investing and then jump into awesomeness .
As the saying goes ,
"Unless your money is at stake , you would never learn the nuances of stock market (or) investing"
About the Author
0 comments