{"id":5215,"date":"2021-10-20T13:03:47","date_gmt":"2021-10-20T07:33:47","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=5215"},"modified":"2022-09-08T18:30:16","modified_gmt":"2022-09-08T13:00:16","slug":"how-to-buy-share","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/","title":{"rendered":"How To Buy Shares Online in India \u2013 Beginner\u2019s Stock Investment Guide"},"content":{"rendered":"\n<p>You\u2019ve probably heard that stocks can make you very rich very quick. While we will not downplay the high amount of risk that stock <a href=\"https:\/\/www.tickertape.in\/blog\/trading-vs-investing\/?utm_source=blog&amp;utm_medium=article\">investing<\/a> involves, there is some truth to it. Careful, well-researched and a strategic approach to stock investing for the long term has the potential to help you accumulate wealth. So how to buy stocks in India?<\/p>\n\n\n\n<p>If you are ready to jump into the ring, this article will take you through how to buy <a href=\"https:\/\/www.tickertape.in\/blog\/shares\/?utm_source=blog&amp;utm_medium=article\">shares<\/a> online to add to your portfolio.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Why-invest-in-the-stock-market\" title=\"Why invest in the stock market?\">Why invest in the stock market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#What-to-consider-when-investing-in-the-stock-market\" title=\"What to consider when investing in the stock market?\">What to consider when investing in the stock market?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#What-kind-of-investor-are-you\" title=\"What kind of investor are you?\">What kind of investor are you?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Dont-put-all-your-eggs-in-one-basket\" title=\"Don\u2019t put all your eggs in one basket\">Don\u2019t put all your eggs in one basket<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Do-your-research\" title=\"Do your research\">Do your research<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Requirements-to-invest-in-the-stock-market\" title=\"Requirements to invest in the stock market\">Requirements to invest in the stock market<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#PAN-card\" title=\"PAN card\">PAN card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Demat-account\" title=\"Demat account\">Demat account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Trading-account\" title=\"Trading account\">Trading account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Bank-account\" title=\"Bank account\">Bank account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Depository-participants\" title=\"Depository participants\">Depository participants<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Steps-to-invest-in-the-stock-market\" title=\"Steps to invest in the stock market\">Steps to invest in the stock market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-buy-share\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"why\"><span class=\"ez-toc-section\" id=\"Why-invest-in-the-stock-market\"><\/span>Why invest in the stock market?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/stock-market-holidays\/?utm_source=blog&amp;utm_medium=article\">Stock market<\/a> has the potential to generate returns, provided you have the appetite for risk and self-discipline. Equities can well balance your <a href=\"https:\/\/www.tickertape.in\/blog\/portfolio-investment\/?utm_source=blog&amp;utm_medium=article\">portfolio<\/a> besides shielding you from inflation.&nbsp;<\/p>\n\n\n\n<p>But, trading stocks, i.e buying\/selling shares and securities are not as easy as it appears. It involves complex planning and a strategy suitable to your risk profile. Let us find out in detail all factors to be kept in mind while investing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\"><span class=\"ez-toc-section\" id=\"What-to-consider-when-investing-in-the-stock-market\"><\/span>What to consider when investing in the stock market?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-kind-of-investor-are-you\"><\/span>What kind of investor are you?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Define your investment objectives. This will further dictate the quantum of funds you wish to <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a>, how long you want to stay invested, and how is your risk appetite.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dont-put-all-your-eggs-in-one-basket\"><\/span>Don\u2019t put all your eggs in one basket<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Risk is inherent when investing in the <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/\">stock market<\/a>. To manage this risk, you must <a href=\"https:\/\/www.tickertape.in\/blog\/mitigating-portfolio-risk-through-diversification\/?utm_source=blog&amp;utm_medium=article\">diversify your investments<\/a> and invest only after thoroughly understanding the instrument and related risk.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Do-your-research\"><\/span>Do your research<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is very important to research the companies you are investing in and not just rely on market experts and emotions. For this, you will have to keep your ear to the ground regarding every financial, economical, and political news in the country.&nbsp;<\/p>\n\n\n\n<p>You can use the <a href=\"https:\/\/www.tickertape.in\/screener?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape Screener<\/a> for your research and at the same time plan for the <a href=\"https:\/\/www.tickertape.in\/blog\/muhurat-trading-2021\/?utm_source=blog&amp;utm_medium=article&amp;utm_campaign=mtrad\">Muhurat Trading<\/a> session, which is considered an auspicious time on Diwali when the stock market is open for one hour.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"invest\"><span class=\"ez-toc-section\" id=\"Requirements-to-invest-in-the-stock-market\"><\/span>Requirements to invest in the stock market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PAN-card\"><\/span>PAN card<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>All investors must have a Permanent Account Number (PAN Card). It is a unique ten-digit alphanumeric code, assigned to all individuals, which the tax authorities use to assess a person\u2019s tax liabilities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Demat-account\"><\/span>Demat account<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The next thing you need for trading is a dematerialized or <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-transfer-shares-from-one-demat-account-to-another-complete-process\/?utm_source=blog&amp;utm_medium=article\">demat account<\/a>. This is a digital account where you can hold your shares, in your name, in a non-physical or dematerialized form.&nbsp;<\/p>\n\n\n\n<p>Most banks and financial intermediaries offer the service of opening a demat account. Today, a demat account can be opened in less than 10 mins, thanks to various digital brokerages and technological advancements.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Trading-account\"><\/span>Trading account<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To buy and sell shares, you will need a <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-a-trading-account\/\">trading account<\/a> held with a stockbroker. Investors cannot directly deal with the <a href=\"https:\/\/www.tickertape.in\/blog\/stock-exchange\/?utm_source=blog&amp;utm_medium=article\">stock exchanges<\/a> where the actual stock trade happens. This is where stock brokers come into the picture. Stockbrokers are registered on either <a href=\"https:\/\/www.tickertape.in\/stocks\/bse-BSEL?&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">BSE<\/a> or <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/?utm_source=blog&amp;utm_medium=article\">NSE<\/a> or both and offer numerous types of services to buy and sell shares. They are licensed by <a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/?utm_source=blog&amp;utm_medium=article\">SEBI<\/a> and can be online platforms or individuals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bank-account\"><\/span>Bank account<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A bank account needs to be linked to your trading account to ensure that money can flow in and out when you buy or sell shares.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Depository-participants\"><\/span>Depository participants<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are two share depositories in India \u2013 <a href=\"https:\/\/www.tickertape.in\/blog\/difference-between-nsdl-and-cdsl\/?utm_source=blog&amp;utm_medium=article\">the NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited)<\/a> \u2013 that act as storage houses for the stock market shares. They use their Depository Participants to release shares to you when you buy them. This participant can be a financial institution, broker or other entity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"steps\"><span class=\"ez-toc-section\" id=\"Steps-to-invest-in-the-stock-market\"><\/span>Steps to invest in the stock market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once you meet these requirements, trading on the stock market becomes relatively easy. Here are the steps to follow:<\/p>\n\n\n\n<ol><li>Log into your trading account<\/li><li>Choose the shares you want to buy and decide the quantity and price&nbsp;<\/li><li>Allocate enough funds in your trading account to ensure you have the money to buy the quantity of shares<\/li><li>Watch the stock price movement and place your \u2018buy\u2019 order when you find the price within your comfort levels&nbsp;<\/li><\/ol>\n\n\n\n<p>The money would get blocked from your trading account and be transferred to your broker once the trade is completed. Note that delivery of shares to your demat account may take up to three days &#8211; (trading day plus two days) &#8211; to complete.<\/p>\n\n\n\n<p>While you may effect an opposite order and sell your shares, holding on to shares for the long term generally results in better returns if the fundamentals of the stock were good in the first place.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investing in the stock market is considered attractive because of the possibility of high returns, although it also comes with high risk. To properly and safely invest in the stock market, you must educate yourself of all the risks and plan your investment in accordance.<\/p>\n\n\n\n<p>Buying stock online is fairly simple and straightforward, made even easier by new-age enterprises and mobile applications. You may require to commit to some paperwork depending on the brokerage you choose. Reach out to your financial advisor before investing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Want to know how to purchase shares? Click here for a step by step process to buy stocks in India and learn the basics of investment to make your first purchase!<\/p>\n","protected":false},"author":45,"featured_media":5217,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[9],"tags":[892,893,894,890,891,896,897,898,895],"acf":[],"modified_by":"Aradhana Gotur","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/new1-1.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5215"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/45"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=5215"}],"version-history":[{"count":3,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5215\/revisions"}],"predecessor-version":[{"id":8727,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/5215\/revisions\/8727"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/5217"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=5215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=5215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=5215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}