22 May 07 Investing in the Stock Market
Recently a few of my friends who read my blog asked me how they could start investing in the Stock Market directly. This article is for those who are looking at investing in the stock market but are not sure how or where to start. Investing in the stock market is fairly simple these days. Given below are 4 easy steps which will have you ready to start investing in the stock market in no time.
- You will need a PAN card to open a demat account which is necessary for investing in the stock market. If you apply online through a credit card you will get the PAN number in about a week.
- You will need to have a bank account for trading in the stock market. A HDFC bank account is recommended. Call the bank and ask them to send a representative to get the formalities done.
- The next account that is a must for investing in the stock market is a demat account. Demat account can be opened with a bank or a brokerage firm
- Finally, you will need an online stock market trading account for investing in the stock market directly.
Tip: Your bank account, online stock market trading account and demat account need to be linked. You can open a online stock market trading account and demat account with the same brokerage firm and give the brokerage firm the power of attorney to operate your demat account so that you are free from paperwork. This will make investing in the stock market a pleasurable experience.
Caveat: Before investing in the stock market one should understand the risks involved or else the entire capital invested can be wiped out in no time.
Apart from investing in the stock market, an investor can also invest in IPO issues by the click of a button, sitting at your home or office desk. Thanks to technology, investing in the stock market is now safe, convenient and easy.
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well Above points are absolutely correct but you must know the pros & cones of the power of attorney given to brokerage house.
Because now a days brokerage firm in the name of over margin sold your valuable shares without your knowledge ,so kindly open a DMAT & Bank A/C connected like
E-Z of SBI Trade
Kotak Bank & Securities
UTI
ICICI
HDFC
CENTURION
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