Make money work for you

Imagine you putting money into a box and watching it increase
everyday. Sounds fascinating right.
That’s what the stock markets do for you. ( If properly managed).

Why one needs to invest money in stock market:

Usually banks
are safe haven for investments and they fetch around 6-7% interest per annum. Considering
the annual rate of inflation @ around 6% per annum , the money obtained after
one year from bank would have the same buying power as it had a year ago. Stock
markets provide a vehicle wherein the average return can be 20 – 30 % which is
enough to beat inflation.

What is stock market ?

Stock market
is a place wherein, the stocks ( more commonly shares ) of many companies are
traded. It is very much similar to our regular goods markets and are basically
driven by demand – supply logic.

What is a stock or a share ?

A stock or a
share refers to part ownership in a company. For much detailed introduction one
can visit the following websites ..

http://www.investopedia.com

http://www.indiahowto.com/what-are-stocks.html

http://keshavabharadwaj.googlepages.com/stocks

What does one need to invest in stock market

1. Money :)
2. One needs to open a dematerialization account ( demat) with a depository
participant. Usually all leading banks ( Icici, Hdfc, Sbi ) provide depository
services. Apart from banks, some brokerage ( sharekhan, motilaoswal ) houses
also provide this service.

3. Online trading account : Most of trading nowadays is done
online. Hence its better to open an online trading account along with demat
account. But this is not necessary for trading, as trading can also be done by
contacting ur
broker.

What are sensex and nifty ?

The sensex
and nifty are indicators of stock exchanges. They would tell whether most of
the stock values are going up or down.

How does one really make money ( or loose :) )

One buys a
stock @ a price and depending on the company the price of a stock moves up or
down. Hence choosing the right company decides whether one makes money or
looses money.

Coming next ------- Detailed introduction and investing
philosophies……