How to do the Investment in Share Market – A Definitive Guide |
Posted: September 14, 2019 |
In order to purchase the shares in US, an individual must have the trading account linked to demat and bank account. Let’s get to know more about it: 1- Demat account A share working account can’t work in isolation. It is necessary to have a Demat account. Just like money is stored in the banks, shares are kept in a Demat account. Similarly, when they are sold, they are pulled out from the Demat account for the transaction. 2- Trading share account It is a share a trading account using which one to purchase or sell stocks. Every time when a person purchases shares, they need to login first and move further. Without a trading account, a person won’t be able to purchase or sell the stocks. 3- Bank account A share trading account must also have a bank account. A trading account gets linked to a bank account. When an individual buys shares, the said amount will get debited from the account automatically. When a person decides to sell the shares, the sale proceedings will get credited to the account automatically. How trading account can be used? The basic question is how to purchase and sell shares with the help of trading account. Four basic things need to be done in a trading account to purchase and sell shares: 1- Name of the stock Enter the stock name which you want to purchase. You need to decide which stock to sell and buy. There are two major stock exchanges: NSE and BSE. One can buy the stock from any of these. BSE has more stocks than NSE. 2- Type of trade In any platform of sharing the trade, there are three types of possible trades: Intraday, Cash and Margin. A beginner must go with the options of cash. Margin and intraday trading is for more professional traders. 3- Price Enter the price on which you want to purchase the share. Either decide your own price or buy it at a current market rate. You can also take the suggestion from the experts’ business.com. This is the step which is more crucial because the lower will be the purchase price, more profits you are going to get. As a good investor, your target must be buying the shares only at undervalued levels of price.
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