Tips that Stock Traders Swear By
by Rosy Thomas Investment AdvisorFor a long time, stock trading in
India was considered to be a taboo. Dealing in stocks risky business because
you have minimum to know control over it, but that does not mean that it is
unethical or wrong. Stocks or shares are created when a private company opens
to the public and they buy stakes in the company, these stakes are called stock
or shares. Owning shares means that you too are a part owner of that company
and profit and losses made by that company will affect your earnings from that
stock. A stockholder receives a dividend, which is a part of the profits made
by the company. Dividends can be annual or quarterly.
Stock market trading or online share
trading is a great way to invest your money for long term benefits. This is the
reason why most banks today offer Online
Trading accounts to their customers. Stock trading can also be done
via the internet now. Online stock trading requires a little skill and
knowledge, but once you’ve acquired that you can easily enter the online share
trading game.
If you’re thinking of investing
your money and entering the world of stock trading, then here are some tips
that you will definitely find handy.
1. While dealing with stock always ensures that the
traders are registered with the Securities and Exchange Board of India (SEBI)
and all the document and forms are correctly and completely filled.
2.
If you’re dealing with a stock broker, you
should always insist on contract notes. In case of doubt in respect of the
transactions, verify its genuineness on the Bombay Stock Exchange website.
3. Before you start trading stocks of a particular
company, check about the credentials of that company or companies, their
management, fundamentals and recent announcements made by them and various
other disclosures made under various regulations. The sources of information
are the websites of Exchanges and companies, databases of data vendor, business
magazines etc.
4. Before you begin online stock trading with a particular stock, always carefully read and understand the contents stated in the Risk Disclosure Document.
5. The Exchange redresses investors’ complaints through arbitration and IGRC mechanism, which are quasi-judicial in nature. The period consumed in redressed of complaint through IGRC is not considered while measuring period of 'limitation' in filing arbitration application provided the complaint is filed at the concerned Regional Investor Service Centre.
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Created on Oct 31st 2017 05:22. Viewed 733 times.