How to invest in share Market!!!!!

Demat and Trading accounts.

What you have to do to invest in the share market ? Firstly open a demat and trading account online with a brocker and link your bank account with that opening demat account is a very simple and easy process.once you have your demat and trading account,you can start investing in the indian share market.it’s essential for you to be familiar with the stock exchanges and their functions.stock exchange is where buying and selling of shares take place.the stock exchanges are regulated by SEBI (securities and exchange Board of india).the two important stock exchanges of india are NSE (National stock exchange) and BSE (Bombay stock exchange).

As per your goals,choose the particular financial asset for investment.Indian share market is the one stop destination for all your needs.If you are more concerned about regular income and preservation of capital,you can opt for debt instruments likes bands.if you want capital appeeciation and willing to take risk ,equity is the one for you .before you invest in a share do a complete study of the company ,its financials future prospects of growth. Below is what you have to do to achieve ypur goals.

(1) Define your life goals. (2)Learn about financial assets. (3)choose the respective asset as per your need. (4)start investing regularly. (5)Fulfill your goals.

Hope you have got a basic idea of share market and so now it’s time to understand the different financial instruments.

Types of stocks to invest in share market..

When you buy a share ,you can be a comman share holder or preferred shareholder on the basis of ownership. As a common share holder, you are permitted to vote in shareholder meetings and you are eligible to receive dividends.if the company where you have invested goes bankrupt, you will receive the share of proceeds of liquidation only after all creditors and prefessed shareholders have been paid.

As a prefessed shareholder,you may not have voting rights.but you will get dividends before common shareholder receives it.

On the basis of market capitalization,you can invest in large cap ,mid cap and small cap stocks. Market capitalization= share price * Number of shares outstanding. Outstanding shares are the shares that can be bought and sold in public markets.I will Explain this with an example say a company (A) has 1000 outstanding shares and the share price is Rs.10 ,then market capitalization of the company will be 10 x 1000= Rs 10000.

Large cap stock…

These companies are well established and have a strong presence in the market.companies lije Tcs,Infosys and wipro fall under this category . Investing in these companies are less risky.

Mid cap stocks…

These companies have the potential to grow big and are relatively riskier compared to the large cap companies.

Small cap stocks..

Start ups fall under this category and are highly risky compared to the above two on the upsider,they can become a runaway success overnight. The next essential aspect you should know is Ipo(Initial public offer).A company raises money from public through Ipo.it sells its shares so as to bring in capital for its shares sa as to bring in capital for its future development. Your yield is high when you invest in a share due to the power of compounding.In simple terms the price of shares you hold tadaly may be Rs 100,it can double or triple if you hold the share for a long time.!!!!!!!!💐