homepersonal finance NewsExplainer | How can one start investing in stock market

Explainer | How can one start investing in stock market

Investing in the share market means buying stocks of a company. If you want to buy shares, you must first approach a SEBI-registered member, or broker, of a stock exchange.

By Ekta Batra  Jul 11, 2023 10:49:49 AM IST (Updated)

2 Min Read

Explainer | How can one start investing in stock market

Can I buy shares directly in the stock market?

No, an investor cannot buy shares directly.

An investor has to buy shares via a registered member of a stock exchange or stock broker.

Stock brokers undertake transactions of buying and selling shares on behalf of the investor.

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What functions can a stock broker execute?

A stock broker will take you through the requirements and formalities such as completing Know Your Client or KYC details and opening necessary accounts.

The stock broker can execute trades for you ie buying and / or selling shares for you.

Brokers are familiar with the stock markets hence generally guide or recommend both short term and long term trades.

What is a trading and DEMAT account?

In order to begin trading an investor will need to set up a trading account and demat account.

When an investor wants to buy or sell shares it is done via the trading account.

A Demat account is where the shares are held digitally.

The account can be made via the stock broker.

Investors can have multiple accounts with different brokers if needed.

Any word of caution for stock market investors

Yes.

Do be aware of unverified tips, messages via social media, calls and messages.

Is there any risk of investing in the stock markets?

Be aware that investing in the stock markets does come with risk.

There is no guarantee of profits when you buy a stock.