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Share and share market
Share
Share is nothing but the Ownership of the company divided into small parts and each part is called as Share or Stock.
Share is also called by different names like equity, financial security and so on.
A person carrying a share of a company holds that part of ownership in that company.
A person holding maximum shares carry maximum ownership and designated like director, chairman etc.
Share Market
A Share market is the place where buying and selling of shares takes place.
Now days due to internet and advanced technology there is no need to present physically in exchanges like NSE and BSE but in fact the buying and selling of shares can be done from anywhere, where there is a computer with internet connection.
One should have a demat and trading account, computer and internet connection and he/she can start the share trading or investing from anywhere.Back to Top Following terms to find more information about Share Market
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Custom Search Process of share market
First let us understand the Working of a share market
To learn about how you can earn on the stock market, one has to understand how it works.
When a person want to buy/sell shares in the share market then he has to first place the order with a broker or can do themselves using online trading systems (this will be discussed later).
When you place the buy order, the message is transferred to the exchange [either NSE {National Stock Exchange} or BSE {Bombay Stock Exchange}] and the order stays in the queue of exchange's other orders and gets executed if the price of that share comes to that value. Once you get the confirmation of this transaction, the shares purchased, will be sent to your demat account. The shares will be stored in demat account in electronic format.
Rolling Settlement Cycle: (RSC)
RSC means when you will get your shares in your demat account.
In a rolling settlement, each trading day(T) is considered as a trading period and trades executed during the trading day(T) are settled on a T+2 basis i.e. trading day plus two working days. So the conclusion is on forth working day you will get the shares in your demat account.
What is Demat account and why it is required?
Securities and Exchange Board of India (SEBI) is a board of India appointed by the Government of India in 1992 with its head office at Mumbai.
Its one of the function is helping the business in stock exchanges and in other security markets. In another word it is the regulator for stock exchanges. It monitors and regulates both stock exchanges in India.
a) Demat (short form of Dematerialization) is the process by which an investor can get shares (also called as physical certificates)
converted into electronic form maintained in an account with the Depository Participant (DP).
b) DP could be organizations involved in the business of providing financial services like banks, brokers, financial institutions etc. DP’s are like agents of Depository.
c) Depository is an organization responsible to maintain investor's securities (securities can be shares or any other form of investments) in the electronic form. In India there are two such organizations called NSDL (National Securities Depository Ltd.) and CDSL (Central Depository Services India Ltd.)
d) Investor’s wishing to open Demat account has to go DP and open the account.
e) Opening the Demat account is as simple as opening the saving bank account with any bank.
As you need bank account to save money, deposit cheques etc, likewise you need to have a demat account to buy and sell stocks in share market and to hold the shares.
f) All shares what you own will show in your demat account, so you don't have to possess any physical certificates. All your shares are all held electronically in your demat account.
As you buy and sell the shares, accordingly, your shares will get adjusted in your demat account. Disclaimer: Information presented on this site is a guide only. It may not necessarily be correct and is not intended to be taken as financial advice nor has it been prepared with regard to the individual investment needs and objectives or financial situation of any particular person. Stock quotes are believed to be accurate and correctly dated, but www.daytradingshares.com does not warrant or guarantee their accuracy or date.
www.daytradingshares.com takes no responsibility for any investment decisions based on recommendations provided on website.
Financial contents like Technical charts, historical charts and quotes are taken from NSE and Yahoo sites.
Note - All quotes are delayed by 15 minutes and unless specified.
Google Adsense Ads are posted on every page of the website so visitors clicking on Ads and going to those links and carrying any financial deal is not at all related to www.daytradingshares.com and any financial deal should be done on their own sole responsibility.
Please read at www.daytradingshares.com/disclaimer.php before using any material or advice given at www.daytradingshares.com
Copyright © 2011 DayTradingShares.com. All Rights ReservedIndex in share market
Index consists of group of shares. Index denotes the direction of the entire market.
Like when people say market is going up or down then that means Index is going up or down.
Index consists of high market capitalization and high liquidity shares.
High Market capitalization shares - Companies having highest number of shares and highest price of each share.
Market capitalization is calculated by multiplying current share price and number of shares in the market.
High Liquidity shares - Shares in the market with high volumes.
Two types of Indices
Nifty and
Sensex
Nifty - Nifty consist of a group of 50 shares.
Sensex - Sensex consist of a group of 30 shares.
Stock exchanges
Mainly there are two exchanges in India.
NSE (National stock exchange) - Nifty is listed with NSE.
BSE (Bombay stock exchange) - Sensex is listed with BSE.
NSE and BSE are countries economic barometer.
Stock exchanges like NSE and BSE are the places where the trading of shares takes place. Demat account is must
YES. Demat account is must.
The market regulator, the Securities and Exchange Board of India (SEBI), has made it compulsory to open the demat account if you want to buy and sell shares in Indian share market.
So a demat account is a must for trading and investing in share market.
How to open a Demat account?
You have to approach a Depository Participant (DP) to open a Demat account.
Most banks are DP participants so you can approach them or else you can contact us.
To have latest list of registered DP please visit websites www.nsdl.co.in and www.cdslindia.com
A broker and a DP are two different people.
A broker is a member of the stock exchange, who buys and sells shares on his behalf and also on behalf of his customers.
A broker can also be a DP.
Following are the documents required to open Demat account
When you approach any DP, you will be guided through the formalities for opening a demat account.
The DP will ask to provide some documents as proof of your identity and address.
Below is a list of documents out of which you have to submit one or two.
PAN card, Voter’s ID, Passport, Ration card, Driver’s license,
Photo credit card Employee ID card, IT returns, Electricity/ Landline phone bill etc.
We are offering the demat and trading account, If you are interested then please visit at
http://www.daytradingshares.com/demat_account_opening.html
Do you need any shares to open a Demat account?
NO. You need not have to have any shares to open a demat account.
A demat account can be opened with no balance of shares.
And also there is no restriction to maintain any minimum shares. You can have a zero balance (shares) in your account.
How much it cost to open a Demat account?
The charges for demat account opening varies from broker to broker of from DP to DP.
Generally some broker charge one time account opening fees but currently due to high competition they are offering free account.
To have latest charges please visit websites of www.nsdl.co.in and www.cdslindia.com or else you need to contact the specific broker.
Finally
After successfully opening the demat account you are ready to do buying and selling of shares in share market exchanges like BSE and NSE.
Important points to remember while opening online demat account
1) Do multiple enquiries with various brokers or DP’s and try getting low brokerage charges.
2) Also discuss about the margin they provide for day trading.
3) Discuss about fund transfer facility. The fund transfer should be reliable and easy. Fund transfer from your bank account to trading account and fund payout from your trading account back to your bank savings account.
Some online share trading account has integrated savings account which makes easy for you to transfer funds from your saving account to trading account.
4) Very important is about service they provide, the research calls, intraday or daily trading tips.
5) Also enquire about their services charges and any other hidden fees if any.
6) Check how reliable and easy is to contact them in case of any emergency, like buying and selling of shares on immediate basis or in case of any technical or other problems at your side while trading yourself.
7) You can also request to broker for demonstration of the trading terminal software and check how comfortable it is for you.
There are various brokers and DP, please contact us for more information of brokers.
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