SHARETIPSINFO >> Articles Directory >>An Introduction to Trading Stock In The Stock Market
Stock Market is one of the financial institutions in India. It was introduced in 1874. Here all the bankers set forth together at Bombay that later became the main headquarter .Later on opened headquarters to Ahmedabad, Calcutta and so on. Investing money and money lending is not a new thing for Indian it has been also practice during the early Vedic period as well as during the mughal period. So, let us go through an introduction to trading stock in the stock market. It is important that you have a good knowledge on the functioning of the share market.
The major stock market was of two types;
- Bombay Stock Exchange: This stock exchange came into existence on 1952 and commonly known as the Sensex.
- National Stock Exchange: This is formed a year latter in 1994 commonly known as Nifty.
As Stock market is a place where company sells out their shares publicly which means that the company does not belong to the chairman or the founder the more shareholder the company has, the more different owner the company has. The entire shareholder invest money the company performs its function and so the company profit can cannot be for the company itself but have to distribute to all the shareholders in terms of percentage and so on.
But all the emerging company’s inside India cannot be listed in the Indian Stock market. There are certain criteria which the company has to fulfill. For instance the company should have a minimum of more than a million as public issues. And the shares offered by each company are also different. While one company might sell the share at Rs 80 while there are some company who sells their share at Rs 1000 as well.
As mention earlier stock market does not always gives profit but also losses as well, so while trading one must be very careful. Even though there is no such kinds of login period or maturity period like insurance mutual fund and so on ,but there is some case where you can lost ,i.e., If you invest last month when the sensex point is 19,000 ,here you buy shares in lets say infosys company worth Rs 100/share which means you buy 190 shares ,due to some emergency you want to sell you share today but today sensex was 17,000 which means that you have to sell you share lesser from what you buy which means selling price is less than cost price and that is a loss for you, but if you remain in the market for sometime time will comes when your selling price is more than the cost price. It is important that you go for having a good knowledge on the working of the NSE, BSE…etc.
Stock market is control by the Board of Directors and the trading can be done through Stock consultants. In India there are more than five thousands stock consultants. Stock consultants represent the investors and buy shares for them as well as they maintain the trading, they know more in which company to invest and where not to invest.
In the meantime, if a person wants to invest in the Stock market, he cannot merely approach the stock consultant and invest, there are some things that he needs to have. The following this is require to invest in a stock market:
- PAN Card (Permanent Account Number).
- D-mat Account.
If a person possess the above, only than he can start trading.
If you have any problem regarding in making the above requirements approach your nearest stock consultant they will show you how and where to make because usually it is easier to make through the stock consultant itself. And it is a must to know about the company performance before trading. So, you have come to an introduction to trading stock in the stock market.
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