Benefits of Investing in Stock Market

Saturday, 12 November 2016 03:23 ap infosys
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Benefits of Investing in Stock Market

BENEFITS OF INVESTING

 IN STOCK MARKET

Investment,  First of all we will need to know what is stock market? How to invest in stock market? what is investment? Investment  is that part of your money whose nominal value increases along with the inflation or time to increase its real value. in this Post we will learn some benefits of investing which you must know before investing in stock market.
The part of money which you park in some avenues like bank deposit,Real Estate, Stock market to get some return on that capital in future is also known as investment. There are many Instruments of Stock Market called Securities like Shares, Bonds, Debentures etc. and this stock market have its own benefits in his own way for every person who invest in stock market. We will discuss here the advantages and the benefits of investing in Stock Market which you must know before Investing in stock market.

BENEFITS OF INVESTING IN STOCK MARKET
 
1. Easy Liquidity: It is the very first benefits of investing, In stock market shares and securities are traded in very high volume which make it a volatile market so there is very easy liquidity in stock market, like if you want to turn your investment in stock market into cash then you can do that very easily.

2. Flexibility: Investing in stock market is very flexible like the market have ups and downs in prices at every trade session, price of stock market moves with the rapidity and flexibility of this market.

3. Regulatory Framework: Stock Market works under some regulatory framework to protect and safeguard all it’s investors. For example: In India the Securities and Exchange Board of Indie (SEBI) works as a Regulatory Framework Body to safeguard all investors.

4. Maximum Returns: According to the long term perspective it is found that Investing in Stock Market gives maximum returns. For example: 1 Lakh INR (Indian Rupees) invested in stock market in the year 1992 (when SENSEX was 2020 INR) is now near about 9 Lakh 50 Thousand INR (Indian Rupees) (today SENSEX is 18,900 INR)

5. Business Taste: Well, According to me it is the best benefits of investing in stock market you can ever have, here from Business Taste I mean that when a person trades or invest in stock market everything is here works like a business a modern style business.

6. Sole Proprietorship: If you invest in stock market then you are starting your own business where your investment is your capital, like the more your trade is in profit the more your business grows and you are the only person to run this business that is why investing in stock market is your sole proprietorship business.

7.Ownership : Buying shares of stock means taking on an ownership stake in the company you purchase stock in. This means that investing in the stock market also brings benefits that are part of being one of a business's owners. Shareholders vote on corporate board members and certain business decisions. They also receive annual reports to learn more about the company. Owning stock in the company you work for can be a way to express loyalty and tie your personal finances to the success of the business as a whole.



 

How to Invest in Stock / Share Market

Thursday, 10 November 2016 21:33 ap infosys
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How to Invest in Stock / Share Market

How to Invest in 

Stock / Share Market

How to Invest In share Market ??
Firstly you need to know what is share market? When we think to invest in share market we thin how it possible because everyone know that the risk of loss is high. So first thing is that what we do?
Here are some tips about Investment in Share market:-
Firstly we advise you that away from investment tips in stock market. Here you think if we say away from tips then why we gives you tips?So I will clear here one thing we gives you tips about companies not for investments.

How to invest in share market?

So lets us have to look  at what a beginner must to do get started with their stock market investments. Here is some steps guide to help you.

1.PAN Card -

1.PAN Card is a primary requirement for entering any financial transactions in our country. It is unique 10 digit Alpha-Numeric number assigned to an individual by the Tax Authorities for assessing their tax liabilities. PAN is however required for opening a bank account, investing in mutual funds, filling Income Tax returns etc. Also the first thing you will need to be able to invest in shares in India is a PAN card, so get it first.

2.Get a Broker - 

 We do not suggest you go to direct in share market. You and I cannot directly go the stock exchange and buy or sell stocks/shares like we would buy or sell any other thing. People are authorized to buy and sell on the markets and they are called brokers. Brokers can be individuals or companies and even online agencies that are registered and licensed by SEBI or Securities and Exchanges Board of India, who regulates the share markets. Get a broker, they can be individuals you know and are reliable, or you can approach various companies that are licensed to trade and deal in securities in the markets.
If you are comfortable with internet and online stuff, you can even have online broking through companies like ICICI Direct, Kotak Securities, India Bulls etc. (The names given here are just given as examples of well-known companies).

3.Get a demat and trading A/c- 

Once you have a broker, whether in form of a person, company or online, you will now need a Demat and Trading account. Demat account will hold the stocks or shares in your name and the same will reflect in your stock portfolio. You cannot hold shares in physical form or store them physically. They have to in Dematerialized state or Demat state. A Demat account does that for you. It will store the shares you buy from the markets through your brokers in your account in your name. The selling will also be from here and it will reflect in your Demat statements that you receive from time to time. You will never have a physical share certificate in your hands; it will be reflected in your Demat Account Statement.

4.Depository Participant -

 There is also a Depositary Participant that you need to be aware of. There are two depositories in India: NSDL and CDSL which stands for National Securities Depository Limited and Central Depository Services Limited. These two have their agents in the form of Depository Participants who will provide an account to store the shares you hold. It is not the same as Demat and Trading account as in Demat it shows the number shares you hold and the Trading reflects the buying and selling that has taken place in your account. Depository Participants will hold those shares you bought and release the shares you sold. However, it is usually taken care of by the broker who will also guide you through the Demat, Trading account opening process as well as register with a Depository. But you need to be aware of it none-the-less.
 

5.UIN No - 

 UIN No is need when you invest a big amount of Rs. 1,00,000 or more at a single time.

6.Bye or Sell -

 For buying or selling shares, you need to inform your broker about which share in what quantity you wish to buy at which price. For example if you wish to buy 10 shares of Reliance Industries Ltd when it reaches a price of Rs. 885, you have to inform the same to you broker; Share: Reliance Industries Ltd. Quantity: 10, Price: 885. In case of online broker too, they usually have customer care numbers where you can place your order if you do not have access to the internet at that point. When the share reaches that price, transaction will be made on your behalf. Same is done in case of selling, for example Sell: Reliance Industries Ltd, Quantity: 3, Price: 895. The sell order will be processed when the share reaches that price. However the buy and sell orders remain valid only up to a certain time, usually the same day or the next. Your broker will inform you of the same. If during that time frame the buy or sell price is not reached, the order is cancelled and you need to place a new order.

7.Invest Small Amount -

 When you think you want to go with share market invest a small amount in this.Invest a small amount regularly. 

8.Understand your own Risk -

 Before you want to invest in share market understand all conditions before invest.Because some times a very experienced persons get loss in market so before you invest ready for loss or profit.


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What is share market

Wednesday, 9 November 2016 21:35 ap infosys
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What is share market
STOCK/SHARE MARKET

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks also called share these may include securities listed on a stock exchange as well as only trade privately. The stock market make it possible to grow small initial sums of money into large ones, and to become wealthy without taking the risk of starting a business or making the sacrifices that often accompany a high-paying career.

SIZE OF MARKET

Stocks can also be categorized in various ways. One common way is by the country where the company is domiciled. For example, Nestlé and Novartis are domiciled in Switzerland, so they may be considered as part of the Swiss stock market, although their stock may also be traded at exchanges in other countries.
At the close of 2012, the size of the world stock market (total market capitalization) was about US$55 trillion. By country, the largest market was the United States (about 34%), followed by Japan (about 6%) and the United Kingdom (about 6%). This went up more in 2013.
There are a total of 60 stock exchanges in the world with a total market capitalization of $69 trillion. Of these there are 16 exchanges that have a market capitalization of $1 trillion each and they account for 87% of global market capitalization. Apart from the Australian Securities Exchange, all of these 16 exchanges are divided between three continents: North America, Europe and Asia.

STOCK EXCHANGE
A stock exchange is a place of organization by which stock traders can trade stock. Companies may want to get their stock listed on a stock exchange other stock may be traded "over the counter" that is through a dealer. A large company will usually have its stock listed on many exchanges across the world. Exchanges may also cover other types of security such as fixed interest securities or interest derivatives.


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