For the benefit of those who are new to the world of finance, let us start with the basics. What are stocks? How do you purchase them? How to purchase stocks online and what is the best online trading platform in India?
A stock (also known as equity) is a financial instrument that represents ownership of a share of a business. The stockholder is entitled to a portion of the corporation’s assets and income based on the number of shares they possess. Stock units are called “shares.”
Stock is issued (sold) by corporations to raise capital to finance their operations and to fulfil other financial needs. Stocks are divided into two categories: common and preferred. The real distinction between the two types is that the former has voting privileges that can be used to influence business decisions, whilst the latter does not. Preferred shareholders, on the other hand, are legally obligated to receive a specific amount of dividend payouts before any dividends are paid to other common stockholders.
It’s worth noting that there’s also something known as ‘convertible preferred stock.’ This is essentially a preferred stock with the option to convert it into a predetermined number of common shares at any time after a certain date.
Stock investing is one of the most reliable strategies to build long-term wealth. With the ease with which information, knowledge, and expert counsel are readily available, an increasing number of people are understanding the benefits of equity investment. Stocks are also growing in popularity as Indians diversify their investments away from gold, real estate, bank deposits and other such traditional avenues for investment.
How to buy stocks online and is it safe to do so?
With the basics out of the way, let us talk about how to go about investing in stocks online and how safe it is to do so.
Many people who have never invested before, want to get into the stock market but don’t know where or how to begin. Many of these new investors are hesitant to get started owing to a lack of accurate information or fear of incurring losses as a result of all the recent headlines concerning economic instability, volatility, and hazards, as well as the fear of being scammed and losing their hard-earned money.
For the most part, economic turbulence and the seemingly unpredictable nature of the stock market can be mitigated and accounted for by doing prior research before making an investment and not taking any unnecessary risks.
Moreover, Investors can rest confident that the brokerage businesses that provide the service to trade stocks online adhere to strict security standards. The majority of these businesses have their security measures listed on their websites. Online trade, according to experts, is just as safe as offline trading because financial transactions are constantly protected.
Now, how can you actually trade online?
The first thing you need to do is find a stockbroker online. This allows you to start your very own Demat account and trading account. Now while a Trading account facilitates your sales and purchases in the stock market, a demat account allows you to hold shares and assets electronically. All of an individual’s interests in shares, mutual funds, government bonds, bonds and exchange-traded funds are held in their demat accounts.
After providing some basic personal information and necessary documents you can set up your trading and demat accounts. Now you can start browsing through the trading platform and look through the live prices and all other important information regarding different shares. Moreover, investors using these platforms also gain access to a vast variety of materials, such as live quotations and infographics, to assist them in making an informed selection. Furthermore, many trading platforms have their own mobile apps, which provide a high level of ease when trading and checking prices, among other things.
Concluding thoughts
Like most things in life, the stock market is unpredictable as well. And although it can be pretty daunting to make your first investment, as long as you do your prior research and don’t make any unnecessarily risky moves, the potential for making profits is huge. Moreover, it is pretty evident that buying and selling stocks online is just as safe, if not safer, than trading via traditional means.
With the help of the vast amount of information that is available online and on trading platforms, investors can make informed choices and mitigate the risks of trading online. And on that note, if you are looking for the best online trading platform in India, the Ashika Group trading platform is your best option. Their smartphone application, Dhanush, is focused on offering stockbrokers, traders, and individuals with an interest in investing in the markets with access to the stock exchange, in addition to the large quantity of information and other useful features that they provide to users. This programme is excellent for people who want to make smart investments that are in line with their financial needs and aspirations