For your convenience, our most common customer questions are answered right here.
WHAT IS STOCK?
Stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.
WHY WOULD I CHOOSE STOCKS?
Stocks are one of the most effective tools for building wealth, as stocks are a share of ownership of a company. You thus have great potential to receive monetary benefits when you own stock shares. Owning stocks of fundamentally strong companies simply lets your money work harder for you since they appreciate in value over a period of time while also offering rich dividends on a periodic basis.
WHAT INSTRUMENTS ARE TRADED IN THE STOCK MARKETS?
There are various types of instruments traded in the stock market. They include shares, mutual funds, IPOs, futures and options.
WHERE DO I BUY STOCKS?
Stock trading happens on stock exchanges. However, you cannot buy directly at the exchange. To buy stocks, you need to find a suitable broker who will understand your needs and buy stocks on your behalf. You can think of them as agents who will conduct transactions for you without actually owning any of the securities themselves. In exchange for facilitating or executing a trade, brokers will charge you a commission. You can easily buy stocks through various Security service provider like AxisSecurity,ICICISecurity, KotakSecurity etc. Once you are registered with them, you can trade using their website, our mobile trading app, our desktop trading application, or through the phone using our Call & Trade facility.
WHERE DO I FIND STOCK RELATED INFORMATION?
Some of the most accessible avenues to get stock information are the internet, business news channels and print media.
Check our post: http://www.investorcorner.in/best-reference-for-individual-investors-for-stock-market-analysis/
How trading takes place and what is the process of trading?
The normal course of online trading in the Indian market context is placed below:
Step 1. Investor / trader decides to trade
Step 2. Places order with a broker to buy / sell the required quantity of respective securities
Step 3. Best priced order matches based on price-time priority
Step 4. Order execution is electronically communicated to the broker’s terminal
Step 5. Trade confirmation slip issued to the investor / trader by the broker
Step 6. Within 24 hours of trade execution, contract note is issued to the investor / trader by the broker
Step 7 Pay-in of funds and securities before T+2 day
Step 8. Pay-out of funds and securities on T+2 day
In case of short or bad delivery of funds / securities, the exchange orders for an auction to settle the delivery. If the shares could not be bought in the auction, the transaction is closed out as per SEBI guidelines
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