Guide on How to Invest in Stock Market

A share market is where shares are issued and traded in. Over the years, shares have become a popular means of investing. With the advent of the digital age, almost everyone can participate in the share market and work towards fetching returns. While the share market can be lucrative, it is only so if you understand investment practices. Here is a guide on investing in the stock market for beginners to help you.

As mentioned above, a share market is where companies can issue shares, and individuals can trade them. On the other hand, the stock market allows trading shares and mutual funds, bonds, derivatives, and other financial instruments. So, if you are looking to trade only in shares issued by companies, you are investing in the share market. However, if you want to trade using other securities, as well, then you can do so on the stock market. 

An essential element of the share market is the stock exchange. The stock exchange platform allows for trading company stocks and other instruments. Stock or security can only be tradable if it features on the stock exchange list. The exchange acts as a place that catalogues all the securities that can be tradable and facilitates the meeting of stock buyers and sellers. The two primary exchanges where you can trade in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). 

You can read more about share markets here.

The two types of share markets you can trade are the Primary Share Market and the Secondary Share Market.

Primary Share Market

When a company wants to get registered to issue their shares and raise money, they rely on it. One can use this platform to park a place for stocks on the stock exchange list. A company mainly enters the Primary Share Market to raise capital by offering its shares to the public through an Initial Public Offering (IPO).

Secondary Share Market

Once companies purchase new securities from the Primary Market, they can trade them in the secondary market. These trades offer investors a chance to sell the purchased shares. The transactions in the Secondary Share Market are between investors, wherein one sells, and the other buys at the prevailing market price or one decided by the parties. Usually, trades on the Secondary Share Market come with intermediaries like brokers. HDFC Securities offers top-quality brokering services to help you trade quickly and efficiently. Click here to find out more about HDFC Securities. 

At HDFC Securities, we provide top-of-the-line facilities to allow you to engage in the share market. Our DEMAT and Trading Account will enable you to avail of our excellent margin trading facility and practice currency and commodity trading. You can rely on our robust research and guidance and use our quick and efficient transfer mechanisms. 

We provide 24x7 assistance and relationship manager services to help you navigate the share market. HDFC Securities offers end-to-end investment solutions to help you fulfil your financial aspirations. 

Click here  to open a Demat Account from HDFC Bank now!

*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in the securities market are subject to market risks; read all the related documents carefully before investing.