A share market is a place where shares are issued and traded. It has become a popular means of investing now. With the growth of the digital world, almost everyone can participate in the share market and work towards getting returns. The share market is also a beneficial investment mode, so figuring out how to invest in it can be hectic. So, here is how you can invest in the primary and secondary markets:
Investing in primary markets
If you want to invest in both primary and secondary share markets, you need a Trading and Demat Account. A Demat Account carries electronic copies of the shares you trade with. Along with a Demat Account, you require a Trading Account, which will help you buy and sell market shares. Thinking about how to open Demat Account? It is relatively easy and can be done online in minutes.
If you invest in a company’s Initial Public Offering, you are some shares based on the market response. Once the company receives all the applications for investing in the IPO, it analyses the share demand and availability. Based on availability, the shares are allocated to traders. You can easily apply to invest in an IPO through a systematic process.
Through this process, the amount is spent towards the IPO if you buy Rs. 2 lakh shares. When the company in question allots its shares, the exact amount needed for the shares gets debited to the company. However, the balance is directly credited to your account. Once the shares are allotted, they get listed on the stock exchange. After that, you can initiate trading with them in the share market within a week.
Investing in secondary markets
As the primary share market, you need Trading and Demat Accounts to invest in the secondary markets. Your accounts should be tethered to a Bank Account, allowing seamless transactions. If you are wondering how to invest in share market, the next step will answer your question. After opening your accounts, log into your Trading Account and opt for the shares you want to sell or buy.
If you purchase shares, ensure you have the funds to carry out these transactions. Additionally, check if you have selected the proper share amount when selling them. Then, decide the price to buy and sell the shares. The seller or buyer will then reciprocate your request. Lastly, you can complete your transaction by transferring the money/shares and receiving the shares/money in exchange.
Conclusion
Now that you know the entire process of investing in primary and secondary share markets, you should open a Trading and Demat Account immediately. However, research the market well to achieve your financial goals through your investing journey.
