beginners guide for investing in stocks

This is an absolute beginner guide for investing in stocks

investing in stocks
In order to start investing in stocks.We need to buy and sell stocks of a company. You require two things:

1) Demat Account:

In the early days, we had to store physical copies of our share certificates with us.
Now stocks and other securities like debentures, bonds, government securities, units, etc. can be stored electronically in a Demat (de-materialized) account.
In India, we have two depositories, central depository service, Limited (CDSL) and national securities depository limited (NSDL).
An investor cannot directly open an account with them but has to use the services of depository participants (DP), to open a Demat account.
List of documents required for opening a Demat account is given below.

Proof of Identity: PAN card, driver’s license, passport, voter card etc.

Proof of Address: Ration card, passport, drivers license, voter card, landline telephone bill not more than 2 months old etc.

Passport size photo
Pan card copy

2) Trading Account:

You are free to open a trading account with any broker. The important thing to remember is that to check whether the broker is registered with NSE or BSE.
The brokerage for intraday is generally between 0.01% to 0.05%.
The brokerage for delivery is generally between 0.1% to 0.5%.
You can bargain for the best rates with your broker based on your turnover.
Many brokers have a concept of minimum brokerage so check with your broker to find out what your minimum brokerage is.
Charges levied other than brokerage charges are Securities Transaction Tax (STT), Transaction Charges, SEBI Turnover Charges, Stamp Duty and Service Tax.

List of documents for opening a trading account is given below.

Proof of Identity: PAN card, driver’s license, passport, voter card, Aadhaar Card etc.
Proof of Address: Ration card, passport, drivers license, voter card, landline telephone bill not more than 2 months old etc.

Financial statement: 6 months bank statement of ITR form 16.

A KYC (Know Your Customer) form (will be provided by the broker).
Passport size photo
Pan card copy
Cancelled cheque

The Complete process takes almost 1 week from submission to account activation.

PS: Please do proper comparison and survey of brokers. Brokers offer variations, for example, Discount brokers or fixed income brokers. Please read all terms and conditions carefully.

Next step after account opening is studying about markets. Investing in stocks requires research and patience.My advice is to read these books and make yourself a Market Wizard.

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