Share Market Basics: Learn About Trading and Stock

Over the years, a prominent investor base has slowly drifted away from traditional investments, such as fixed deposits and public provident funds (PPF) to stock markets. The primary reason for this move is an increase in the risk-taking abilities of investors to generate additional returns. Stock market investments are ideal for investors with a risk appetite to move away from traditional investment avenues and earn significantly higher returns. The most critical benefit of a stock market investment is that there is no capping on the returns. Investments backed by thorough analysis carry the potential to generate inflation-beating results, unlike any other investment avenue. Stock market investments also offer an excellent source of passive income in the current times as it allows you to participate in the growth and profits of its constituent companies. You need to open a Demat account along with a trading account to invest in stock market.  Investors can earn additional income t...

The Securities and Exchanges Board of India (SEBI) governs the trading, clearing, and settlement of transactions on the capital market through its intermediaries. These intermediaries are the stockbroker, the depository and depository participants, the banks, and the clearing corporation. As per SEBI guidelines, only a registered stockbroker has permission to execute a trade on the stock exchange. To enable a stockbroker for the same, the stock exchanges issue licenses to the stockbrokers. Stockbrokers play a crucial role in share markets as individuals cannot buy or sell securities directly on a stock exchange. He must transact through a registered stockbroker.  The SEBI introduces Depositories to regulate the Demat accounts of individuals. Share-issuing companies must become a member of a depository and keep a record of all the electronic securities issued by them. The depositories have depository participants (DP) that provide the investors with demat accounts. Banks are also c...