Saturday, May 29, 2010

Stock Market

INTRODUCTION TO STOCK MARKET.

Investing in stock market is now days easy but with extreme concentration.

Opening a demat account & trading account:
Requirements:
1. Pancard.
2. Id-proof(ration card,pass book).
3. Passport size Photos.

Pancard:
• Now a days pancard become a major requirement for investment in stock market.
• Go to nearer stock broking company and apply for pancard.

Requirements:
1) Ration card.
2) Passbook.
3) Stamp size photos.
4) Sign on black ink.
• It will come in 1 month on the date of apply.

Trading account:
This account is used to buy the stocks from the company.
It is in the form of code words like”EJWR6”.
This account is opened by a SEBI approved stock broker.

Demat account:
This account is used to store the buyed stocks from the trading account.
It is in the form of code like”989765433”.
This account is also opened by a SEBI approved stock brocker.
This account is open in 2 (or) 3 weeks after the date of apply.

Process:
Buying the stocks is very simple.

EX:Reliance groups.
*Reliance groups has doing many business.
*Infrastructure.
*Power.
*Energy.
*Industries.
*Communication.
*Capital.
*Reliance petroleum.
*Etc.

You have Rs.10000.you want to invest in reliance groups.
Invester must note before investing in any company:
*Company past performance.
*Company future projects.
*Is demand for the projects in future?
*Is a long term investment?
*Is a short term investment?

BEST INVESTMENT SHOULD BE:
Invest the amount in different sectors.
Eg:
Inv=10000
Divide 10000 invest this amount in 2 or 3 sectors.
Then only we balance the loss when one stock go on loss.

Eg:
Rel industries=4000.
Rel petroleum=3000.
Rel communication=3000.

Eg:
inv=10000
n=6month
r=10%

These inv,n,r all are decide from us.

To earn profit the investor must decide the long term investment or short term investment and I will sell my stock when my stock earn 10% profit.

The decisions must be your own.


To be Continued…..

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