How to invest in indian stock market pdf

D Safety in Stock Exchange : In stock exchange only the listed securities are traded and stock market authorities include the companies names in the trade list only after verifying the soundness of company. The companies which are listed they also have to operate within the strict rules and regulations. This ensures safety of dealing through stock market. To ensure liquidity and demand of supply of securities the stock market permits healthy speculation of securities. F Better Allocation of Capital : The share of profit making companies are quoted at higher prices and are actively traded so much companies can easily raise fresh capital from Stock exchange.

The general public hesitates to invest in securities of loss making companies. So, Stock market facilitates allocation of investor's fund to profitable channels. G Liquidity and Stock Market : The main function of stock market is to provide ready market for sale and purchase of securities. The presence of stock market gives assurance to investors that their investment can be converted into cash whenever they want.

The investors can invest in long term investment projects without any hesitation, as because of Stock market they can convert long term investment into short term and medium term. H Saving and Investment : The Stock market promotes or offers attractive opportunities of saving and investment in various securities. These opportunities encourage people to save more and invest in Securities of corporate sector rather than investing in unproductive assets such as gold, silver, etc.

Stock Market and Modern Financial System : The financial system under stock market in most of the countries has undergone a remarkable transformation generally in western countries. One features of this development is disintermediation. A portion of the funds involved in saving and financing, flows directly to the financial markets instead of being routed via the traditional bank lending and deposit operations. The general public interest in investing in the Stock market, either directly or through mutual funds, has been an important component of this process.

Statistics show that in recent decades, shares have made up an increasingly large proportion of households' financial assets in many countries as well as India. The trend towards forms of saving with higher risk has been accentuited by new rules for most funds and insurance, permitting a higher proportion of shares to bonds. Similar tendencies are to be found in India as well as developing countries.

Saving has moved away from traditional government insured "bank deposits to more risky securities of one sort or another". Therefore, a second transformation is the move to electronic trading to replace human trading of listed securities.

The major part of this adjustment is that financial portfolios have gone directly to shares but a good deal now takes the form of various kinds of institutional investment for groups of individuals such as pension funds, mutual funds, hedge funds, insurance investment of premiums through this modern electronic system in the country.

In conclusion, it may be say that National Stock Exchange is a first exchange in India to introduce electronic trading facility thus connecting together the investor base of the entire country. Hence, Stock markets are the financial barometer and development indicators of national economy of the country, industrial growth and stability is reflected in the index of stock exchange.

There is also need to attract investor to investment more fund in stock market. The exchanges provide real-time trading information on the listed securities, facilitating price discovery.

In fact, the stock market is often considered the primary indicator of a country's economic strength and development. References: 1. The stock market is the best place where you can start your own business with any amount of capital and increase it over time so that some people do it with savings and part of their monthly salary.

Due to the legitimacy of this market, the possibility of fraud and loss of capital is almost zero, and the investor can safely increase his or her capital. Another advantage of the stock market is that whenever an investor needs to withdraw money, the investor receives the amount obtained from the sale of shares by selling them instantly. Due to the development of technology and increased usage of the Internet, it has become possible for people to trade without the need to attend the stock exchange or brokerage halls and to buy and sell their shares through the Internet without spending time to travel.

In this market, anyone who intends to start a business and buy and sell stocks can get information and increase awareness by visiting different websites or purchase books in this field. By using the right training, they can make a profit in this Given the information above, the stock market has advantages that other markets do not have. Benefits for investors such as high liquidity, productive activity, working with any amount of capital, the possibility of any risk, economic prevalence, transparent information, and benefits for society such as controlling liquidity in society, fair distribution of wealth, growth of gross national product and inflation control.

Given the many benefits of the stock market, it is good for all members of society to enter this market with any amount of capital and to invest and use the benefits of this market to make a profit. For this reason, we decided to provide a tangible and expressive training that can be used for any by increasing public information in this field, people with how to enter the stock market and buy and sell and use opportunities.

Get to know the market. In this book, which is designed in steps, we have tried to prepare beginners who are going to enter the stock market simply and in a tangible language. You will learn about stock market rules and how to buy and sell stocks and so many tips and tricks which can help you in this way.

Now that we have first discovered the advantages of the stock market and the explanation why a significant number of people have recently invested in the stock market, we recognize that it is time to look at the stock market investing strategies and the best way to cope with choosing the amount of risk.

We would also discuss the various categories of capital exchange and brokerage companies first and then clarify the common forms of direct and indirect investing in the stock market.

This market has been divided into four different sections:. The book is very much practical and I have gained confidence to enter into stock market. I have 1 doubt in the book: regd. Please explain the difference 2 Please explain elaborately: how the Rs. Originally Posted by mamidiuday. Thanks maniji It cleared my doubt. Thank you. Sunil Gomes. Originally Posted by sunilmgomes.