You will need to complete your Know Your Customer (KYC) forms, upon approval of which your demat and trading accounts will be set up. Therefore, opening a trading and a demat account can also be done only through a broker. Note that stock investment in India can be done only through a stockbroker. So, you need a bank account and you need to link it with the trading and demat accounts to start investing in stock market.
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Though you use the trading account to buy and sell a stock, the money needed to buy and the money received on selling is routed from and to a bank account. At the time of selling, the shares are taken out from the demat account and sold. After you purchase shares using the trading account, your shares will be ‘delivered’ to you in the dematerialized form, or digital format, to your demat account and stored. It serves as storage or a locker for the shares that you buy. You, therefore, need to open a trading account with a stockbroker for share investment.
HOW TO INVEST IN STOCKS BEGINNERS GUIDE HOW TO
You need to understand how investing in stock market works and how you can start investing in shares. However, share market investment requires little research and knowledge-gaining on your part. It can be a lucrative investment avenue that can help you grow your money and create a sufficient corpus to meet your financial goals. The stock market is a very attractive space for investors to earn potentially handsome returns but at the cost of a higher risk profile.
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