How do companies issue shares?
First, companies get IPO (Initial Public Offering) by listing their shares on the stock exchange and issue their shares to the public at the price fixed by them. Once the IPO is completed, Shares enter the market and are bought and sold by investors through stock exchanges and brokers.
How do prices of shares change?
The company decides the price of shares at the time of bringing the IPO, but once the IPO is completed, the price of the shares varies depending on the Demand and Supply of the market. This change happens on the basis of important information given by the demand and supply companies from time to time. You can understand it like this
If the number of people buying shares is more than the number of people selling shares, then the price of shares will increase.
Buyers ^ Sellers
And if the opposite happens, that is, the number of people selling is more than those who buy, then the price will be lower.
Sellers ^ Buyers
What is Sensex?
Sensex is the index of the Bombay Stock Exchange and Sensex is determined based on the market capitalization (total value of companies) of the top 30 companies listed on the BSE. If the Sensex increases, it means that most of the companies registered in the BSE have performed well. And similarly, if the Sensex falls, it means that the performance of most of the companies is deteriorating.
What is nifty?
Nifty is an index of the National Stock Exchange and is determined on the basis of the market capitalization of the top 50 companies listed in the NSE. If Nifty increases, it means that companies registered in the NSE have performed well and if Nifty This means that NSE companies have performed poorly.
What is a Demat Account?
Just as banks can deposit money in an account, similarly all securities related to your investment in Demat Account like Share, Bonds, Government Securities, Mutual Funds etc. are stored in electronic form.
What is a Trading Account?
Trading Account is used to make Share Sell and Purchase in your share business. You can open this account with a good broker and due to the facility online, you can buy and sell shares at any time with the help of this account. zerodha is my favourite because it is reliable and secure. I only trade in Zerodha.
How to open a Demat account?
In order to open a trading and Demat account, it is necessary that you open it from the best broker such as Zerodha. You can open a Demat account in Zerodha from your mobile or computer in a few minutes and start buying and selling shares after the account is activated. To open a Demat and trading account visit this link.
Fees and Charges (Zerodha):
.Free equity delivery All equity delivery investments (NSE, BSE), are absolutely free - ₹ 0 brokerage.
.Intraday and F&O trade Flat Rs. 20 or 0.03% (whichever is lower) per executed order on intraday trades across equity, currency, and commodity trades.
.Free direct MF all direct mutual fund investments are absolutely free - ₹ 0 commissions & DP charges.
Trading in Zerodha is absolutely free, you do not have to pay any fees or charges, only you have to pay a fee of 300 rupees for opening an account. And if you do intraday trading then you will have to order at 20 rupees.
Documents you will need to open a Demat and Trading Account
1.PAN Card
2.Aadhar Card
3.Income Proof (for IPO only)
4.Cancel check
5.Signature
6.Live photo with code
While submitting all these documents, keep in mind that in all these certificates, your name is written correctly and clearly and written in the same way.
Buy and sell shares
First of all, you have to open your Demat account on Zerodha, which is very easy, after this, when your Demat account is activated, you will log in and research the shares first and you will benefit in buying shares of which company.
You buy stocks in two ways, one to buy in the morning and sell in the evening, which is called intraday trading and the other to hold the stock for a few days or months. Both methods are good in their place but in long term, it is best to invest in the share market in which the loss is less and profit is more.
In the Zerodha dashboard, you can easily buy and sell any company's stock. How to open a Demat account for a share market and then how to buy and sell shares.
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