Just the Basics…..

Finance in a term is quite a huge term. It would be very difficult to explain in just a few lines or paras…

There are various verticals in the term Finance…

It consists of Investments, Loans, Corporate finance, Debt markets and so much more…

My blog would talk about the fields I have learned thru the years.…and that is  Investments (via Equity, Debt, Mutual fund, Insurance mode)

Hope it would help one and all for their investment needs. You are even free to ask me any sort of questions at anytime..

Lets start with Investing in Stock Markets…

Indian Equity market (IEM) has been one of the best for investments lately if compared to the other countries. IEM has two major backbones they are National Stock Exchange and Bombay Stock Exchange.

For anyone to buy or sell any share, he would have to open an Equity account and a Depository (DP) with any Broking firm. Equity account would enable you to buy or sell any stock and depository is like a bank account for shares. Wherein every time you buy a stock, the broker would then deliver the same to clients dp account. Its just like when we deposit a chq and then the funds get credited to our individual bank account. As and when the client would sell the stock, he would have to deliver the same from his dp account to the Brokers account which in turn will deliver the same to the exchange.

The usual market hours for both exchanges are 9 am to 3.30 pm without any breaks or halts. There are various means of having an account with a broker and they are: Online and Offline. The latest trend is of having an online trading account. It has its own advantages and disadvantages (the same would be written about in later blog posts). 

Basic documents required to open an equity account are:

One recent photograph

Pan Card

Demat account proof (to open one would require similar documents)

Address proof

Bank proof

Income proof (it could be any one of salary slip, 6 mth bank statement, form 16, demat statement)

Now that we have the basic of account opening sorted, in the next blog post then I would write about the difference between Online & Offline trading account and bring out their major advantages and disadvantages…..