Stock is nothing but a share. Let me explain to you about stocks in a simplified way. Suppose your father want to construct an apartment venture and for that, he has to take a loan. And the bank collects monthly EMI’s which include interest and principal amount.
If your father salary is around 50000/- and he has to spend around 20k per month on EMI’s then it will be difficult for him. So, there is another idea, that is, he can choose his good friends to invest with him. So, he doesn’t need to take a loan but he should share the profits with them.
Now lets us consider it like this, assume the father in the above example is a multinational company INFOSYS. They want to invest in some other project and for that instead of taking a loan, they will put some of their company shares in the market through SEBI, SEBI(Security and Exchange Board of India) is a stock and exchange regulatory authority in India.
Now, these shares can be bought by any of us and now we will be the official partners of the company. That means we are investing in their business and we will be given a share in the profit.
I think it is clear up to now.
Now let me tell you how to enter into the stock market or trading. Entering into the stock markets became very easy these days. But if you don’t want to go in losses, we need to wisely invest in them.
For that, we need some suggestions and that person who gives suggestions is called STOCKBROKER. It is important that the broker we hire should be officially recognized by SEBI.
A person can start trading even with 100/-. But the main thing is, don’t be so greedy for money. Share market is a risky process for sure because the company you invest many get into profits at a point and can go into losses at some point.
But, the main thing you have to do is, always watch business channels, look if the company you invested is in profits or losses. If it is in profits, take your money back with profits.
If it is in losses wait and look until your company goes into profits or at least you get the money back that you have invested. All these details and suggestions will be given to you by the STOCKBROKER.
WHAT YOU NEED TO GO INTO STOCK MARKET
You just need a BANK ACCOUNT
A PAN CARD
and a D-MAT account.
So, if you want to invest in stocks start at a young age, when your parents are there to support you. Start as a student because you can invest 500/- and even if you lose you don’t feel sad.
But if you got profits don’t get greedy. The stockbrokers may suggest you invest more, but don’t take those steps which you can’t afford.
Suppose you have 500/-, don’t put on one company. Put 100/- on 5 companies at least you can get back some money.
The most famous stock exchange office in every city is the KARVY EXCHANGE office where we can find in all most all cities.
So, instead of spending money on unwanted things just make some decent profits. If everything goes well you will become rich or as you started with 500/-, you get a knowledge of stocks so, we can invest well next time.
Disclaimer: This article tells the basics, but to know the risk of investing in stocks please head to nearby KARVY OFFICE and take a wise step.