The Indian share market is one of the most lucrative investment marketplaces many of you may be thinking to invest in the Indian share market.
Because in the era of world economic slowdown, the Indian market has shown a potential growth rate. the future prospect of the Indian market is very high.
After doing all the market analysis now you are ready to invest in the Indian share market but don’t know where to start.
Then, my friend, you are in the right place in this article I will share all the basic detail of investment in the Indian share market.
What is the share market:
A share market is a place of trade where the trade of shares take place. It is a place where you can find sellers and buyers or you can say that it’s a meeting place for sellers and buyers.
How to invest in the share market:
To invest in the market you need to know there are two types of markets where you can invest
1- Primary market
2- Secondary market
Primary Market:
The primary market is a market where the company issues its shares for the first time to raise funds from the market.
their company sells its share directly to customers through an allotment system. The company floats its share for the bidding process customer who wants to purchase the share of the company (that’s initially called IPO) shows his interest by submitting a bid price.
Who succeeds in the bidding process company allots its share to them. and returns the money to the not allotted customer.
How to participate in a bidding process to purchase IPO:-
You can participate in bidding through various modes like – with a Demat account or with a simple saving account
Yes, there are various banking apps that provide access to a bidding process.
Secondary market:
This is the place where you can sell your IPO. As a result we called it a secondary market. In layman’s terms, this is the share marketplace where trade takes place.
There is various instrument available to trade in the secondary market. you just need to have a Demat and trading account to trade here.
The basic requirement to invest in the share market:
To invest in the share market or to participate in secondary market trade you need to have a Demat and trading account.
Follow the steps to invest in the share market-
Step 1- Open Demat and trading account: This is the first step of investment in the share market. A Demat account record your trade transaction and store share you purchase whereas a trading account support trade.
Step 2 – Select the company of share:- This is the most important part of share investment because it needs technical analysis and market understanding.
Step 3 – Place the order for the selected share:- Now place your order to have shared in your Demat account. Now it’s up to you what you want. long-term investment or short-term investment.
Document requirement for Demat account:
If you want to open your Demat account online with Upstox or Zerodha then you need to have the following document on your mobile-
- Pan Card image
- Adhar card image
- Adhar card link with mobile to get OTP for verification
- Signature image
- Saving account to link with Demat account
To open an offline you need the following documents-
- Passport size photo
- Pan card
- Adhar card
- Address proof
- Id proof
- Cheque copy to link your saving account
You can have a Demat account with any broker you like. now start your trading journey.
