As trading becomes more accessible, as an outcome of the proliferation of Free Demat Accounts Online, more and more people are participating in the Stock Market. Stock trading and Demat accounts are related entities to each other.
Individual investors who want to actively participate in the Stock Market have several options and can trade freely through a Free Demat account.
What Is a Share?
Shares can be defined as units of ownership in a particular company. These comprise of Shares, Scrips, Equity, etc. Purchasing stocks makes you a stockholder of a particular company.
Why Do Companies Sell Their Shares?
When a company is scaling up or expanding its business in a different location, it will definitely need more capital. During this situation, the best way to generate capital is by selling its shares into the Share Market, where a certain number of shares based on its market value are purchased and sold by the investors.
In these types of shares, investors are not lending money to the company as credit. Instead, they get to be a part-owner.
The Securities and Exchange Board of India or SEBI is the securities market regulator to oversee any fraudulent transactions, and any activities made by companies, investors, and brokers. SEBI has laid out a few rules and regulations for a company to list its IPO on exchanges, which comply with these guidelines, before being eligible for listing.
Want to start online trading? (Or any long-term financial product)? Well, the positive news is that you can do trading with just a few clicks. Start by creating a Free Online Demat account, then within some time, you can start working on your financial portfolio.
What are the terms “Nifty” and “Sensex”?
There are 100 to 1,000s of companies listed on both the NSE and the BSE. It is difficult for you to pick the top 30 stocks, or look at the bottom of 100 stocks. Thus, to distinguish between these, the benchmark indices such as the Nifty and the Sensex group them together.
Sensex is a collection of the top 30 stocks listed on BSE, whereas the Nifty 50 is a collection of the top 50 companies listed on NSE. Most influential companies will affect the country’s economy, and these top companies are the best indicator for the whole Stock Market.
Further BSE500, Midcap, and BSE small-cap are different indices. There are also sectoral indices as well, like Nifty Pharma, Nifty PSU, and more.
Let us know How to start trading.
First, you need to open a Demat account. Kotak Securities provides a Free Demat account online to make trading convenient. After opening a Demat Account, you need to have a trading account, which is used for buying and selling stocks online. The Demat account stores your shares if you wish to hold the shares instead of selling rather than selling on the day you purchased the stocks.
Open a Free Demat Account with Kotak Securities.
- Go to www.kotaksecurities.com, then click on “account”, and click “Create a Demat account”.
- Enter your phone number & email id, & verify the details.
- Scan and upload your ID proof and address proof.
- Complete the e-sign step.
- Get your Free Demat account online from the comfort of your home.
Creating a Free Demat account from Kotak Securities gives Rs.0 Brokerage on intraday trades. And also 0% commission on Direct Mutual funds. So hurry up, Go to the Kotak securities website, and get your free Demat account online now.