Step-by-Step Guide to Invest in the Share Market | Julio M Herrera Velutini

Especially for beginners, investing in the stock market can be challenging. There are two categories of stock markets: primary and secondary share markets, which you should be aware of if you wish to invest in stocks. 

Buying shares in the primary market 

A key means of investing in the stock market is through an Initial Public Offering (IPO). Following receipt of all investor applications for an IPO, a firm counts the applications and allots shares by demand and supply. You require a Demat account with electronic copies of your shares to invest in the primary and secondary markets. A trading account is also necessary because it will facilitate online share purchases and sales. 

In exceptional circumstances, a trader may also be able to apply straight from their bank account. Application Supported by Blocked Amount (ASBA) is a procedure that simplifies IPO applications filed using net banking. 

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According to the ASBA procedure, if someone asks for shares for Rs. 1 lakh, the money would be blocked into their bank account rather than being given to the firm. The precise amount will be deducted when you get your share allocation, and the remaining funds will then be made available. This process must be adhered to by all applications submitted to IPOs. Within a week of being distributed to traders, shares are listed on the stock exchange and may then be traded. 

Investing shares in the secondary market 

The routine buying and selling of shares or stocks is referred to as secondary share market investment or trading. Before you begin investing in the secondary share market, there are a few easy procedures to take. 

Step 1: Create a trading and Demat account. 

The place to start investing in the secondary market is here. For a smooth transaction, both of these accounts should be connected to an existing bank account. 

Step 2: Choosing the shares. 

To sell or purchase shares, go into your trading account and choose the shares you want. Make sure that you have the necessary cash in your account to buy those shares. 

Step 3: Choose the pricing range 

Set a price at which you wish to purchase or sell shares. Now wait for the response from the buyer or seller to your request. 

Step 4: Complete the transaction 

When the deal is done, you get paid in shares or cash depending on whether you bought or sold the stocks. 

Make sure to keep in mind both the length of time you want to have your assets in place and the financial objectives you hope to accomplish with them. 

About the writer! 

Dear readers, good day! Please accept my sincere thanks for reading my posts. Julio M. Herrera Velutini. hold a century-old tradition of international banking belonging to the Herrera-Velutini family. The purpose of my blog is to increase people's knowledge about banking, investments, and finance.

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