Sunday, February 21, 2016

Starting with indian markets

Some basic info

What is a equity/stock?
A company can be divided into units called stocks/equites. So, when buy equity you actually own some part of the company.

Companies can be divided into three major categories
High Cap or Blue chip - Having large market capatilization i.e. big companies
Mid Cap  - Mid size companies.
Small Cap - Small size companies.

What is market capatilization ?
Market capatilization is no of shares * value of a share.

I have seen people saying "value of a share is large for big companies". But, that's not true. It actually depends on the no of shares too.

How do I invest into market or buy shares?
You need to open a trading account which allows you to buy and sell shares and a DEMAT account in which you can hold your shares. Demat acct is like a bank account, like bank holds money, demat holds shares.

Where can I open a DEMAT account?
There are many banks offering demat account services but they charge very high. I would advise you to join zerodha.com. They charge low and offer good services and you are free to search on your own.






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