Investing in stock is the best and another way to create passive income and it is useful for beating inflation and getting more n more returns if you invest it for a long term. So now let’s see what is stock investing…
What is Stock Investing
Well what do you understand by the word “stock” in share market? The term stock is nothing just a company where you invest your money to get some ownership on that company or we can say you gets some shares of that company/stock.
Let me clear this by an example: let suppose there is a TATA company named “TATA motors” I hope you all know about TATA’s company its a well reputed top brand company for all time. So in TATA motors “Ratan N Tata” is the chairman of the company. The stock value of Tata motors right now is around Rs 462. suppose you want to purchase 100 shares of TATA motors so the value of 100 share is Rs 462 X 100 = Rs 46,200, after buying it you get some ownership/shares of TATA motors which is owned by you, well don’t think after buying some shares of TATA motors you’ll become the chairman of TATA motors 😄 well no, you just only owned a little percentage of ownership/shares of TATA Motors.
Now, after getting some shares of TATA Motors and then you decide to hold it for the long term around 5 years. So let suppose after 5 year the value of TATA motors jumps to the Rs 1352 that means after five year your 100 shares value is worth Rs 1352 x 100 = Rs 1,35,200 and you get the profit of Rs 1,35,200 – Rs 46,200 = Rs 89,000. So this called “Stock Investing”
(Note: The example is given by me is in profit. Its depend on the financials of that companies how they are perform if their financials is good then it make sense to invest otherwise you’ll loose your all money by investing in wrong stocks, so please analyze first then invest)
Stock investing is a type of investment where you decide to directly invest your money in the company is known as “Stock Investing”
I hope you understand what stock investing is, So now let’s see how you can invest in the stocks…
How to invest in Stocks?
These days invest in stock is very easy, you only have to do is open an “Demat Account” and start investing. let’s see the all steps how to invest…
STEP 1: Open an Demat Account, there are so many companies provides a platform to you for investing like Upstox, Icici Direct, AngelOne, 5Paisa, kotak Securities, Edelwesiss, Jiffy so many others etc.
Open an Demat Account
STEP 2: After opening an demat account, open your demat application and adds some funds in it.
STEP3: Now Select the company/stock which you wana buy like reliance communication, adani power, ITC, TATA Motors etc. there are too many list of company are given in a demat application. so you have to choose and decide which comapny/stock is suitable for you for investing.
STEP 4: After selecting the stock just click on it and then click on “BUY” button, after clicking on buy button you have to choose the quantity how much quantity you wana buy, after that you’ll see there are two NSE(National Stock Exchange) or BSE(Bombay Stock Exchange) Click anyone one option in it then click on proceed.
Then BOOM, you done your first successful investment. Congratulations 🥳 on your first successful investing journey.
(Note 1: If you get any error of purchasing the shares then contact to the customer care on your demat provider and tell them about your problem, they can easily provide you the solution).
Note 2: Our Indian Stock Market opening timing is 9:30 A.M. and closes in 3:30 P.M. You can only complete you buy/sell process within a given time otherwise you’ll not be able yo buy or sell your shares. And, most importantly The Stock Market Open from Monday to Friday, Saturday or Sunday Close).
STEP 5: After completing the successful investment now you must be thinking where you can see your company shares. So Go to the PortFolio Section and click on it there you’ll see your all shares which you buyed and also you can see your all losses and profit there.
So that’s its guys I hope you learned something new today and now you know how to invest in stocks. If you like this blog then please comment to us on what thing you like the most or what thing you not like. And please share this blog with your friends, family, and with your neighbors who want to know about investing. Because this blog is totally about financial education/information.
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