There are some basic requirements that must be in place before anyone can start the process of buying, holding and selling of shares. This document is a basic guideline to explain these requirements. Please note that this document does not provide any advice on what stocks to buy or what investment strategy fit the individual. This is the Getting Started guide for individuals on the basis of my own experience
basic things 3 needed to start work were:
* tears account
* trading account
* bank account
tears account
tears such as a bank account, with the difference is that instead of cash, the expense of tears holds shares. So, if you bought the shares, have been deposited in the account and tears buyers if the shares were sold, they are reduced accordingly from tears account. Shares that are deposited or reduce the expense of tears are electronic shares. For someone interested in trading in stocks, it is compulsory for all trade in the shares of tears (non-physical). Can not be physical shares traded. Share tears have many advantages in terms of ease of dealing with etc.
can open the account tears through most banks and financial institutions, and then fill out the required forms and provide the identity and address of the proofs. The usual charges associated with the expense of tears are:
(1). Account opening fees
(2). The annual fee to keep the tears account
(3). Repeated rotating to hold shares in the account fees tears
(4). The other service fees based on transactions outside. Usually, the transaction / service fees do not exist when they are buying shares. Fee will be charged when selling shares.
charges described above may not be the same across the various service providers, but a large part is likely to be the same regulators such as the Securities and Exchange Board of India (SEBI) to determine certain criteria.
trading account
trading account is required if there is someone who wants to trading, ie buying and selling shares on the stock exchange. Two major stock exchanges in India is the National Financial Exchange (NSE) and the Bombay Stock Exchange (BSE). You can open a trading account with most banks and financial institutions, and then fill out the required forms and provide the identity and address of the proofs. This can be the actual trading via telephone, the Internet or the use of transactions that are provided at the time of opening the account vouchers. Personally, I found buying and selling using the internet fairly convenient. There are options to specify the price at which to buy or sell and it is easy to follow up the case on the Internet.
There are brokerage fees incurred by both buying and selling stocks. The charge is different in different business houses. Also, government fees will be incurred, such as the process of Securities Tax (STT) on such transactions.
bank account
Needless to say, it must be from a bank account to perform various financial transactions associated with the trading of shares. This is where the money on the sale of shares will be credited or will be deducted money to buy shares. The average savings account is sufficient and there is no additional needs to be done with the bank account.
trading process
once in tears account, trading account and a bank account in the right place, everyone is ready to start trading. While it is not necessary to have tears account, trading account and the bank account with the same organization, and I think that the presence of her with the same organization provides additional comfort, especially for individuals using the Internet in trading. Next of buying and selling example using a trading account on the Internet shows the convenience of having tears account, trading and account bank account with the same organization
buy shares when an individual wants to buy a stake, he / she recorded in trading account and determine details such as name The company, no. Stocks to buy and the price at which to buy. Based on this information, the required amount from the bank account set aside for this trade. When we arrived at the desired price, the implementation of these trade and deduction of the amount (after adjusting fees) from the bank account and credited shares in the account tears.
If the bank account was with a different organization, and then to implement this trade, it has been necessary amount transferred in the trading account
sell the shares: when an individual wants to sell a stake, he / she recorded in trading account and determine details such as company name, no. Stock to sell and the price at which the sale. Based on this information, and there is a need for a share of tears prepared for this trade account. When he arrived at the desired price, the implementation of this trade, the shares are tears of expense deduction, the amount (after adjusting fees) is credited to the bank account.
If the bank account was with a different organization, then this trade, it was necessary to transfer the amount of the trading account in the bank account.
Please note that regardless of the charges levied by the bank, and tears provider account and trade service provider account service, there will be additional government taxes such as STT and tax services. Also, please be sure to read all the terms and fees for service providers details before opening any account and be aware of the transaction costs involved with each transaction. Happy Trading!
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