Meaning and Explanation of Short Sell and Short Sell Technique

Short Sell is a very interesting and surprising topic in the Share Market.It has got good advantage for the day traders who expect one particular Share will reduce on that day. Many Intraday Traders book profit by using this technique. This technique not only having advantages but also having disadvantage. you will understand the disadvantage of short sell technique after learning what is Short Sell?

I hope you already know how to buy and sell Shares? well, the total process I explained in that post is of general procedure of buying and selling Shares. I didn't add any Short Sell related topic in that post. when coming to the point, in general procedure you should buy shares first then wait for that scrip value to raise, then you have to sell in order to book profits. But in the short Sell Technique you can sell the shares at market price with out buying them first. Yes what you read is correct. you can sell shares even if you don't have those shares in your portfolio. and you can buy shares later but on the same day when the price of that particular scrip reduced. It is just reverse procedure to the general procedure which I explained previously. Here in short Sell you sell shares first with out having them and buy later on the same day at low price. The difference between the selling and buying price is your profit. for better understanding with example see the below picture.



For example take Tata Motors Scrip from the above Picture. Its LTP(Latest Trading price) Price was 319 when I captured and High Price was 340. It means Tata motors was gone to 340 before I captured the pic. In this case assume that I am not having any of tata Motor shares in my portfolio and sold 100 Tata Motors shares at 340. and later you can see that Tata Motors LTP was 319.70. So assume that I bought those 100 shares back at 319.70. So the profit for one share is 20.3. So total profit for 100 shares is 100* 20.3 = 2030. So the total profit that you could book on that day on the Tata Motors Scrip is 2030 rupees. This is the advantage of the short Sell Technique.

There is also disadvantage in Short Sell. After you sell shares in short sell some times if the price of that scrip increases then you would be booking losses. The main disadvantage of this method is that you can not carry this transaction to the next day. You should close the transaction on the same day. Means if you Short Sell, then you should buy those shares back on the same day, you can not hold it to buy it on the next day. If you don't buy then the online system would automatically buy at closing price with out bothering about your loss. So use Short Sell Technique only if you are very confident about particular scrip that it's value will be reduced on the same day. If you are not confident then don't Short Sell.

One more point I forgot to say you which may leads you to the confusion. In Short Sell you can sell shares even if you don't have those shares. In that case you should have the money in your trading account equivalent to the Trade value. for example if you want to sell 100 shares of a scrip which is 100 rupees in market price then you should have 10,000 rupees in your trading account.

I hope you understood well about Short Sell. If you don't understand or if you have any doubts ask me in the comments section. I will answer you the same in the comments section so that it will be useful for others who is having same doubts.

Documents Valid or Accepted as Foreign Address Proof

There are many options available to submit a proof for your foreign Address proof. I am listing all the proofs here. submitting any one of the bellow proof is enough.

Valid Foreign Address Proofs are as listed bellow:

1. Photocopy of Resident Permit (or) I-card (or) PR if you are Permanent Resident
2. Photocopy of PIO Card
3. Photocopy of Foreign Driving License.
4. Bank statement with one canceled cheque. (If you are submitting bank statement as a Foreign address proof make sure that your name and address are clearly visible on the statement. You should also have bank Logo on the statement (or) attestation of the bank employee along with bank seal.
5. Photocopy of latest Electricity bill
6. Photocopy of latest Telephone bill

Track Current Market Prices, Behaviour and Performance of World Markets

Some people guess and estimate the Indian Stock Market behavior and future depending on the behavior and performance of all world Markets. Sometimes falling in US Markets and Asian Markets will also leads to fall in Indian Markets. In the same manner if US markets make big profits then the Indian Market will also show good profits based on the market sentiment. So Daily Watching and Tracking World Markets will give you better idea in estimating Indian Markets.

So here I am Adding one Widget to watch all important world markets. This widget is provided and updated Daily by Sanebull. Previously I posted this Gadjeton the main page to be displayed on all the posts. But many visitors mailed me saying that my blog is taking too long time because of many such gadgets on all the pages. So I just decided to clean the blog to some extent in-order to speed up the loading time of the blog. So I am posting the world market widget here. This gives you current updates and current market price and performance and the change in World Markets.

World markets you can track by using this widget are as follows:

1) Dow Current Market Price or Latest Price 2) Nasdaq Current Market Price or Latest Price 3) S&P 500 Current Market Price or Latest Price 4) Merval Current Market Price or Latest Price. 5) Bovespa Current Market Price or Latest Price 6) Tsx Current Market Price or Latest Price 7) IPC Current Market Price or Latest Price 8) AEX Current Market Price or Latest Price 9) FTSE 100 Current Market Price or Latest Price 10) DAX Current Market Price or Latest Price 11) CAC 40 Current Market Price or Latest Price 12) Nikkei Current Market Price or Latest Price 13) Hang Seng Current Market Price or Latest Price 14) Shanghai Current Market Price or Latest Price 15) Straits Current Market Price or Latest Price 16) Jakarta Current Market Price or Latest Price 17) NZX 50 Current Market Price or Latest Price 18) TSEC Current Market Price or Latest Price 19) Sensex Current Market Price or Latest Price 20) Nifty Current Market Price or Latest Price

Stock Info Market Monitor

Important Documents Required To Open NRI Demat Account in India

Opening NRI(Non Resident Indian) Demat Account is not exactly same like opening Normal Demat Account. If you want to open An NRI Demat Account from the country currently where you are residing at, you need to submit some extra documents than those required to open normal Demat Account. I am giving the list of all the Important and necessary documents to open NRI Demat Account. Be ready with all these documents before you apply for NRI Demat Account.

Documents Needed:
1) Photocopy of NRI PAN Card. As it is mandatory to open Demat Account, apply now immediately if you dont have.
2) Photocopy of Valid Passport (Copy of the Pages having your Name, Address and Photo).
3) Photocopy of Visa ( Photocopy of Entry and Exit Stamps).
4) Photocopy of Indian Address Proof ( Mostly not needed Because you are submitting Passport).
5) Photocopy of Foreign Address Proof.
6) Your recent passport Photograph.
7) Bank proof on your name. ( for this you can use your personalized cheque from NRE(Non Resident (or) Repatriable External /NRO(Non Resident (or) Repatriable ordinary) savings account. Personalised cheque in the sense your name should be printed on the cheque. If it is not there then you should provide copies of your 3 months bank statement).
8) One more Cheque to pay the Demat Account and Trading Account charges to the broking company. Cash can not be payable by any other means. If you don't have a cheque book apply it now.
9) PIS(Portfolio Investment Scheme) approval letter from the bank with which your selected Broking Company has tie-up with. Please Verify with your selected broker regarding this.

Note:
If you are an Employee of Foreign shipping Company or Merchant Navy then you wouldn't be having any Foreign address proof. In such case you should provide following documents only in the place of Foreign address proof. Remaining all the documents are required as Said above. These documents are as follows.

1) Your Appointment (or) Contract letter from current employer.
2) Latest Salary Slip.


More Links :
Documents Valid or Accepted as Identity Proof
Documents Valid or Accepted as Indian Address Proof.
Documents Valid or Accepted as Foreign Address Proof.

Current Gold Market Price per Gram

Do you know you can also invest your money in gold and Trade like how you do in Share Market.
You can buy and sell the gold at current market price. For this you have to open separate Trading account. Here in this page you can check Current Gold Rate, Market Rate in per gram Price. You can check India Gold price here before you prefer to buy Gold Jewelry.

GOLD PRICE IN OUNCE.
8 hour (New York) Indian Rupee price per ounce.	24 hour Indian Rupee price per ounce.

GOLD PRICE IN GRAMS.
8 hour (New York) Indian Rupee price per gram.	24 hour Indian Rupee price per gram.

How to Open NRI Demat Account

I am writing this post in order to help Non Resident Indians (NRI) in opening Demat Account. If you are reading this post and you are NRI you would definitely be benefiting from this post. If you are an NRI and showing interest to invest in Indian Share Market then you can open Demat Account from india directly from the country currently you are residing at. Don't bother, you no need to come to India to open Demat Account and Trading account in India to invest in Indian Share Market. Just select any one of the Indian stock Broker who offers NRI Demat Account and call them (or) send E-mail asking to send you the Demat account Application form to your current address. There are many broking companies available in India who offers Online NRI Demat Account. Some of the companies are ICICI Direct Ltd, HDFC Investments Ltd, Indiabulls Securities Ltd, Sharekhan Investments ltd. Select your broker very carefully. Some brokers charge you less brokerage and some charge you more. So before opening Demat account with particular Broking company you should confirm their brokerage charges and compare with other Broking companies. Select one best broker who provides you best service and cheap brokerage. When they are sending you the Application don't forget to ask them to mark with the pencil at areas where all you have to put your signature. Practice your signature perfectly. You have to put more than 40 signatures. Be ready with all the necessary documents required to open NRI Demat Account and Trading Account before application form reach your address. If you dont have any idea about necessary documents please read this bellow post.

Documents Required To Open NRI Demat Account and Trading Account

After getting application to your address fill it correctly with out any mistakes. You should fill the Application very carefully as you have no option to change the application immediatly upon mistakes. If you do any mistake then you should ask them to send one more application and wait till it reach you. For your benifit ask your broker if he can send you 2 applications at atime. so that you can change to another one immediately if you get mistakes. Sign at all the places where your broker marked to sign or where all required. Dont leave atleast one with out signing. It may leads to rejection of your application. Remember you should use the same signature for future transactions and requests. So youngsters should practice perfect signature. Stick your photo and sign on it if required. Note down your application Number. It may be useful to track your application status. Send the filled application to your Broking office. Wait for 15 to 20 days to get your Demat and Trading Accounts delivered at your address. Be cool and start Trading.

Wt Is LTP, Open Price, Low Price,High Price and Close Price.

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LTP, Open Price, Low Price, High Price and Close Price terms are Mainly used to represent Particular scrip prices at different levels. Each term is Explained clearly here. Read them perfectly. Don't get confused. After Reading if you have still doubts then post your doubts here in comments. then I will post reply for that. For better understanding I am pasting one PIC here. you can use that for clear understanding. Before continue reading please observe the image carefully.
Names written Under Scrip are Company names, next is Exchange, Next is LTP, Open Price, Low and High Prices are in order.

Here is the Explanation.

What Is LTP (Last Traded Price) :
Full form of LTP is Last Traded Price. It means It shows the Latest Buy or Sell Value and is also called as a Current Market Price. See in the above Pic. ICICI Bank LTP is shown as 767.55. If anybody wants to buy at that particular time when it shows LTP as 767.55 then they should buy at 767.55 only (market Price). If you want to buy a share lesser than the 767.55 then you can place order for lesser value but your order will be processed only when LTP comes to your offered price.
Tip: When you want to buy a share don't be hurry and buy at LTP. Always buy at lesser price by waiting.

What is Open Price:
Open Price is the Price at which particular scrip opened while Capital Market opens with a price. This is the price of a scrip when Stock Market opens in the morning. difference from yesterdays Close Price. See in picture ICICI Bank Open Price is 764.70. That means On that particular day ICICI Bank Opened at the price value of 764.70 in Equity Market.
Observe: Imagine you had purchased 1000 shares of ICICI bank at open Price(764.70) in the morning and sold 1000 shares at LTP of (767.55) later around afternoon then you would get 2.85 profit per share. and for 1000 shares you would get 2850 profit. This is the case for that day.. but don't excite and buy faster. be careful you will also loose in the same way if you don't use Stop Loss.

What Is Low Price:
Low price is the price at which one particular scrip Traded(Buy/Sell) at very low price on that day. in other way this is the lowest price of particular company for that day. See in picture ICICI Bank Low Price is 745.15

What Is High Price:
High price is the price at which one particular scrip Buy or Sell Transaction executed at very High price on that day. See in picture ICICI Bank High Price is 771.75

What is Close Price:
Close Price is the price at which particular scrip traded last at closing time of Equity Market on previous day. See in picture ICICI Bank Close Price is 756.15. That means Previous day ICICI Bank Scrip Closed at 756.15. Close Price is Exactly the previous days LTP When Market Closes.(by 3:30pm)

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What is the meaning of Delivery Trading

Delivery Trading is a very secure Trading. If we buy shares today and sell them after 1 day then the type of trading is called as Delivery Trading. Share you bought in Delivery option can be sold at any time before Market closes. I.e up to 3.30 pm. If you buy shares With the Delivery option, It will be taken as Delivery Trade only if you sell your shares after 1 day ( may be next day or after a month or after a year, 3 years when ever you sell after 1 day it is called delivery Trading) In Delivery Trading , it will also allow you to sell your shares with in 1 day also (may be with in 1 sec, 1 hour, Before market closes). But if you sell the shares which were bought with Delivery option with in 1 day(may be with in 1 sec, 1 hour, Before market close) would not be taken as a Delivery Trading and would be taken as Intraday Trading. All the brokerages for such Trade will be charged as per Intraday brokerage charges (0.02% to 0.04%). So here you have to understand that if you buy Shares with Delivery Trading option you can also sell it in Intraday.

The main advantage of Delivery Trading is that, the Loss of Fear of Money is very less when compared with Intraday Trading. you can just be cool if you buy in Delivery bcoz you no need to sell on the same day with the loss, even if the market price of your share value reduces. you can wait for more days to get your price.

The main disadvantage of Delivery Trading is that, the brokerage charged by Share Broking Companies is very high for Delivery Trading. It is around 0.2% to 0.4%. and in this type of Trade, your profit will increase slowly.

So my suggestion to this blog readers is that, always Trading in Delivery is safer than Trading in Intraday.

What is the meaning of Intraday Trading

Intraday Trading is the most popular Trading that many Traders use this type Trading to cash their money soon. If you buy and sell shares in a single day then the type of Trading is called as Intraday Trading. In Intraday Trading you can sell shares with in seconds, minutes and hours after you buy, when ever you want and when your you feel that your profit Target has been reached. But all the shares you bought with the Intraday option should be sold 30 minutes prior to the closing time. The general closing time of Stock Market is 3:30 pm. So you should sell all your shares those you bought with Intraday option should be sold before 3pm. Remember if you sell the shares which bought on previous Trading day, then it will not be considered as a Intraday Trading. In Intraday Trading if You buy shares on 22nd you should sell them on 22nd itself. Intraday Trading gives you high profits when you analyze and trade perfectly and also makes you big loss if you dont trade perfectly.

The great advantage of Intraday Trading is that, in Intraday Trading brokerage is very less. INtraday Brokerage is just about 0.02% to 0.04% depending on the broker you choose. And the dissdvantage of Intraday Trading is that, In Intraday Trading fear of loss of money is more compared to other types of trading. So you may also book more losses in Intrady trading if you do wrong analysis. As we can not guarantee returns on our Investment in Intrady Trading you should be ready for loses that may occur when you Trade. you should know all the current news and issues about share market and analyze the shares that you buy with more care if you want to Trade in Intraday Trading.

What is the Meaning of Trade or Trading

In General The meaning of Trade is Buying and Selling any goods. What ever and where ever you Buy and Sell any type of Material or Goods may be to the Individual person or Corporate Body, the entire process is Called as a Trade. When Such Trades Happens and Continuous regularly then it is called Trading.

A Person Who Does The Trade or Trading is called as a Trader.

What I said above is in General Case and the same is also applicable when it comes to Share Market. Here Trade in the sense buying and selling Shares. buying and selling shares regularly is called Trading. The person who is buying and selling shares regularly is Called Trader.

Types Of Trading in Share Market:

According to the way of Trading, Share Market Trade has got two types of Trading. They are as listed bellow.

1) Intraday Trading

2) Delivery Trading

Different Terms (or) Names used in sharemarket

Well, I believe that you read all my previous posts and got knowledge about what is share market, Demat Account, Where to buy the shares , how to open demat account, How to buy shares online. Now it is time to know some of the Terms or Names commonly used in share market. These terms are very commonly used by News Channels and News Papers and Share Market Experts when they speak about Share Market. In-order to undersstand their conversation you should know these common words used regularly in the Share Market and also its meaning. NowI am just giving the names of those common terms in this post and will be explained briefly later in my future posts.

Trade

Scrip

LTP

Open Price

High Price

Low Price

Close Price

Intraday

Delivery

Cash

Margin

Speculation

Vollume

BTST

Short Sell

Order Book

Investor

Speculator

Stop Loss

Exposure

Square Off

Bulk Deals

Target Price

Retail Investor

Non Institutional Investor

Institutional Investor

IPO

Bonus Shares

Dividend

How to deposit (or) Transfer funds (or) Money to your Trading Account.

After getting your Demat and Trading Accounts you will not be having any Balance in your Trading Account. In order to buy shares you should have money in your Trading Account. Ok well, but how to Deposit or Transfer Money to your Trading Account? There are two ways to Transfer funds to your Trading Account.

One is giving a Bank Cheque to your Broker. He will then Transfer the money to your Trading Account mostly after clearance of your Cheque. It may take 1 day to 3 days time to get money deposited in to your account.

Second way is online transferring of funds to your Trading Account from your Bank account through your Broker's Payment Gate Way. To Transfer funds in this way you should have Internet Banking User Id and Password. In this option your money from your Bank account will be Transferred to your Trading Account with in seconds. To proceed through this option you should have account with the particular bank with which your broker has registered for Payment Gate Way. Ask your broker to get Payment Gate Way Bank details and open account with that particular bank.

Mostly the following banks will have Tie-up with almost all the Companies. So it would be better If you have savings account with these Banks

1) ICICI Bank
2) HDFC Bank
3) AxIS Bank
4) IDBI Bank

But If you wish to choose best bank among those 4 banks then give your preference to ICICI Bank. Because it has got tie-up with many companies than other banks.

Share Market Basics

Here is the Index file of Share Market Basics Blog. You can also use this as a site map for this Blog.

Introduction
What Is Share
Where To Buy Shares
Stock Exchangeges Available in India
What is Stock Market Index
World's Different Countries Stock Market Indexes
What is A Demat Account
What is a Trading Account
What all I should have to buy shares
Buying Shares with the help of Broker
Buying Shares by Your Self
Documents needed to open Demat and Trading Accounts
Documents Accepted as a Address Proof
Documents Accepted as a Identity Proof
How to open Demat and Trading accounts
Points to Remember When you Open Demat and Trading Accounts
Things to be Verified After Getting Demat and Trading Accounts
How to Buy Shares After Getting Demat and Trading Accounts
List of Share Broking Companies (or) Share Brokers in India for Debt Market
Privacy Policy of www.sharemarkettheory.blogspot.com

Welcome to Share Market Basics Blog

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How to Buy Shares After Getting Demat and Trading Accounts

Well, I hope you understood what is a Demat Account and Trading Account and how to apply for them. This post will be helpful for you to know how to buy shares after getting your Demat Account and Trading Account. Before reading this post you should know what all you should have to buy Shares. I think you already read my post which says what all you need to have to buy shares. If not click here and read.

After getting your Demat and Trading Accounts you will not be having any Balance in your Trading Account. In order to buy shares you should compulsorily have money in your Trading Account. If you don't know how to transfer funds to your Trading Account Then read this post How to deposit (or) Transfer funds (or) Money to your Trading Account.

After depositing money in to your Trading Account Log-In to your Brokers Website or Online Share Trading Software which has been given to you to buy shares online by using your Client Id (User ID) and Password. After Logging in to your Demat Account first check the available balance by clicking on Account Summery. If you have balance then proceed to buy shares. To buy shares first Launch the Market Watch Window and Insert the Script or Company Name you want to buy. you can load up to 100 Scripts in a single Market Watch Window. After Loading the Scripts watch the script carefully. Price of The Scrip changes in every second. When you decided to buy right click on the scrip and click on buy. Then One Special window will be appeared to buy shares. Enter the Number of shares you want to buy and then enter the price at which you want to buy. you may opt to buy at market price or lesser or greater than the market price. After entering the price and no of shares press enter key, then one confirmation window will be opens displaying No of shares you wanted to buy and the price. Verify and confirm it. Then order will be taken to buy. When the price at which you placed order comes it will buy the shares automatically. You can check those shares in your Demat Account later by clicking on Portfolio.

What is Stock Market Index

Stock Market Index is the method of showing the Overall performance of all the companies that are listed in Stock Market with a Single number. This number is only called as Stock Market Index. This Stock Market Index Number is used by all the Investors and Traders to understand the Present overall performance of the Market and to forecast Future of the stock Market depending on the past values of the Stock Market Index.

DOW is the Stock Market Index of United States Of America
SENSEX is the stock market Index of India's Bombay Stock Exchange.

For example if the Current Value of DOW is 12134.09(+273.02)(2.25%) Means DOW value is increased 273 points from the yesterday's value of 11861.07 and the overall percentage of market is increased by 2.25%. It doesn't mean that all the companies in the Market has increased to 2.25% but most of the Companies Profited around that value of percentage. It indicates that overall market is good.

For example Current Value of DOW is 12134.09(+24.27)(0.2%) Means DOW value is increased 24 points from the yesterday's value and the overall percentage of market is increased by 0.2%. It indicates that overall market is Volatile.

For example Current Value of DOW 12134.09(-273.02)(-2.25%) Means DOW value is decreased 273 points from the yesterday's value and the overall percentage of market is reduced by 2.25%. It indicates that overall market is down by 2.25%.

This Example is common for all the indexes i.e for SENSEX as well as NASDAQ. Just replacing the Index you want for with DOW. Dont get confused.

World's Different Countries Stock Market Indexes

World's Different Countries Stock Market Indexes

Here I have given Different Countries Stock Market Index Names. You can use these names for your Further reference and also to know about world markets and to be able to Identify and differentiate different countries Stock market Indexes.

Amsterdam Stock Exchange Index AEX
Argentina Stock Exchange Index MERVAL
Brazilian Stock Exchange Index BOVESPA
Canada Stock Exchange Index TSX
China Stock Market Index SHANGHAI
Deutch Stock Market Index DAX
French Stock Market Index CAC 40
Hong Kong Stock Market Index HANG SENG
Indian Bombay Stock Exchange Index SENSEX
Indian National Stock Exchange Index NIFTY
Jakarta Stock Exchange Index JAKARTA
Japan Stock Market Index NIKKEI
London Stock Exchange Index FTSE 100
Mexican Stock Exchange Index IPC
New Zealand Stock Exchange Index NZX 50
Singapore Stock Market Index STRAITS
Taiwan Stock Exchange Index TSEC
United States Stock Market Index DOW
United States Stock Market Index NASDAQ
United States Stock Market Index S&P 500

What is A Demat Account

Things to be Verified After Getting Demat and Trading Accounts

This Information is to know what all are the necessary things to be verified after getting Demat Account. After getting your Demat Account and Trading Accounts open the covers you got and check for the details given Bellow.

1) Company Website address:
Your Broker's Website address is the most important one. You have to open this web page to
Log-In in order to buy Shares.

2) User Id (or) Customer ID:
User Id(or) Customer Id is an unique number given to the each and every customer. This ID should be used to Log-In in to your Demat and Trading Accounts.

3) Your Password:
Your password is like a key to open your Trading and Demat Accounts. Don't disclose this password to anybody in order to keep your Shares Secured.

4) Availability of Software for Online Trading (If you have opted for it):
Some Companies provide A special Software to make Online Trading Very Convenient and Fast. This software is very useful to monitor the scripts in real time by using java software. Prices of scripts will be updated automatically every second, sometimes may be less than that. And also buying and selling of shares will be very easy by using software. This software is very useful for Regular Traders and Intraday Traders.

5) Your Broker's contact number for Call Trading (or) Phone Trading:
Telephone Trading service is provided by all most all the companies. This service will be useful when you are out of your system or unable to buy shares online for any other reason. In such case you can Just call to your Brokers Call Trading Number and Place an order to buy or sell. You can also enquiry about the current price of any Company share Value.

6) Your Relationship Manager (or) Adviser:
Know who is your Relationship Manager or Adviser. He will help you in clarifying your doubts about your Broker's products and their services such as How to buy and sell, and where to get the transaction stament, and about bills, every Information that you need from your broker.

7) Your Broker's customer care number:
Know your Broker's Customer Number For getting more information about their products and offers and also be useful for Registering any Complaints.

If you find anything of listed above has not delivered to you after Checking, Immediatly call to your Broker's Customer care service number and confirm from them whether they are offering that particuler service or not. If they say they are offering that particular service, then ask them to deliver the same service to you.

How to Buy Shares After Getting Demat and Trading Accounts

Points to Remember When you Open Demat and Trading Accounts

Before you open Demat Account and Trading Accounts remember these points.(especially for young Traders who doesn't hold any knowledge with financial products. )

1. Some youngsters would not be having a proper signature to be repeated. so they should Practice perfect Signature. While applying for Demat Account you need to sign nearly 40 to 50 Signatures. This signature will be used for future verifications if needed. If signature mismatch happens then investor has to face problems.
2. Your Demat account number and Trading ID and all passwords would be sent to the address available on your address proof. No kit would be given in hand so please give the proof of your current residence. If you can handle it, then no problem. There would be no inquiry about your current residence.
3. Be careful when you are giving cheque to Particular Company's Representative. Don't ever give blank cheque to anybody. Always write the Name of the Company and the amount. to be paid. Don't leave any gaps while writing the amount, before the amount in the words and also in figures in the Amount field.

Things to be Verified After Getting Demat and Trading Accounts

How to open Demat and Trading Account

Well, as I said in the before posts, be ready with all the necessary documents to open Demat and Trading Accounts. There are Many Share Broking companies also called as Share Brokers available. Visit their websites and search for the nearest branch to your location and get their contact numbers. Call to 3 or 4 different Companies and ask for their Brokerage for Inraday and Delivery and other fees and charges. Compare all the companies and select one best from the four. Then take the application and fill it and submit along with all the necessary proofs. Wait for 15 days. Your Demat Account and Trading Account Details will be delivered to your Address with in 15 to 20 days.

Points to Remember When you Open Demat and Trading Accounts

Documents Accepted as a Identity Proof

Here I am giving you the list of proofs that are accepted by most of the Share Broking companies as a valid Identity Proof for opening Normal Demat Account (or) for opening NRI(Non Resident indian) Demat Account. If you submit any of the following that is enough.

Valid Proofs are as given bellow
1) Photocopy of your PAN Card- In general PAN Card is mandatory to open Demat Account. In most ways submitting PAN Card is alone enough for Tax proof and also for Identity proof. But some times PAN Card will not be accepted as a Identity proof only if your photo on the PAN Card is not clear. So if you feel that your photo is not clear and also got other valid Identity Proof, then submit that in order to avoid the cancellation of your application. Mostly it doesn't happen, but why not to have some added security for your application when you have the option?
2) Photocopy of your Voter Identity Card
3) Photocopy of Passport
4) Photocopy of Driving license
5) Photocopy of Learning license
6) Photo Copy of your family Ration Card with your photo on it. ( Some Broking Companies may not accept Ration Card for Identity Proof. Please call to your selected Broking Company and confirm

How to open Demat and Trading accounts

Documents Accepted as a Address Proof

Here I am giving you the list of proofs that are accepted as a valid address proof by many of the Share broking Companies for opening Demat Account. If you are a NRI(Non Resident Indian) and wants to open NRI Demat and Trading Account you can use these proofs to submit to your broking company as a Indian address proof.
The bellow documents will be accepted as a address proof. you can use any one of the listed Document for your address proof need.

1. Photocopy of Passport
2. Photocopy of Voter Id
3. Photocopy of Driving License
4. Photocopy of Ration Card
   
5. Photocopy of Telephone Bill on your name.
6. Photocopy of Gas Bill on your name.
7. Latest Electricity Bill on your name.
8. Photocopy of Bank Pass Book with your nabe and address on it
   
9. Bank Statement.
10. lease agreement
    

*Some of the above listed (Ration Card, Gas Bill,and Lease agreement) are not accepted by some brokers. please call your Share Broking Company and confirm.

Documents Accepted as a Identity Proof

Documents and proofs needed to open Demat and Trading Accounts:

Before Opening Demat Account and Trading Account you should be ready with some Important documents ready. they are as listed bellow. If you are not ready with all those necessary documents start applying now. Here are are the Necessary documents.

1) Savings Account with any one bank.
2) One Self Cheque leaf of the same account where you hold the Bank account. This cheque should be of MICR(Magnetic Ink Character Recognition) cheque. Share Brokers do not accept Micro cheques(local cheques or same city cheques).
3) Photo copy of your Address Proof.
4) Photo Copy of Identity Proof.

5) Photocopy of yor Pan Card. If you dont have apply for PAN card now. It will take 15 to 20 days to get delivered yor PAN Card at the given address.
6) 2 to 5 color photos. (Requirement varies from each broker so call to your broker and ask him how many photos they need)

For more Information Click on Bellow links.
1) Documents accepted as a address proof.
2) Documents accepted as a Identity Proof.

Buy Shares by Your Self

If you want to Buy Shares by your own from your Home you must need An Internet Connection. This Type of option is better if you want to do Intraday Trading.(Buying and Selling on same day)

Minimum requirements needed to buy shares by your self is as given bellow.
---> 1 Personal Computer
---> Internet Connection
---> Bank Account with Net Banking Facility
---> Demat Account
---> Trading Account

* Here when you suppose to buy or sell shares by your self you should get permission from your Broker for Online Trading. Some brokers give you this facility by default some brokers will not. So before Choosing your broker compare particular broker’s services with others and choose.
* Some Brokers provide you Software by charging some fee of Rs 650 or 700. Which is really helpful to monitor the scrips.

Documents required to open Demat and Trading Accounts

Buy Shares with the help of Broker

Buying or selling shares with the help of broker is either by walking to your broker’s office or by calling to Your Broker’s Customer care number. Al the Brokers will maintain some systems with Internet connections for the convenience and use of their customers. Those systems will be maintained by the Relationship officer. You can walk to your nearest office at any time and watch the market and place the order for buying and selling shares. If you don’t find the time to walk to Your Broker’s Branch, then you can place a call to your Broker’s Customer Care Number and place your order for buying or selling particular company shares. With the help of Customer care no you can know the current Value of shares and your value of shares and your available funds, your available shares, your outstanding orders e.t.c. Some Brokers offer you this facility with free of charge but some charge you some amount on the basis of your orders. So before Choosing your broker compare particular broker’s services with others and choose. The minimum requirements you have to have with you to buy shares at your broker’s office is as given bellow.

1) Bank Account with Net Banking Facility
2) Demat Account
3) Trading Account

Buying Shares by Your Self

What all I should have to buy shares

Things you need to have to buy shares:

There are two ways to buy shares. you can very well use both the options to buy shares Depending on your capability and convenience. These facilities help the people to start the business with very less investment. This business not only reduces the Investment and also suits for different time frames. Those who works in companies and who are busy in other work can also be able to do this business. These Two options In this business allow people to buy shares when they are at home, Office, While Traveling, and also even while watching movie. Isn't it a good convenient way to do the business very easily? Good! Now come to the options available to buy shares. as i said earlier there are two ways to buy shares and are listed bellow. on those Links to get more Information about particular Option.

1) Buy Shares with the Help of Broker.

2) Buy shares By your self.

What is a Trading Account

Trading Account is given to the Investor while registering with broker or sub broker. Trading Account is provided with a Trading ID which is to be used for all the transactions later on. The term Trading in the sense Buying and Selling. Here This Trading account is used to buy and sell the shares. For buying the shares we need to deposit money in to trading account. After that we can use this money to buy shares. And the same account is used to sell the shares. When shares sold money will automatically be credited to the Trading Account. Okay now it is known that if we deposit money in Trading account it is easy to buy shares, but how to deposit money in Trading Account? It is very simple. There are two options available to transfer money from our Bank account to Trading account. We can give cheque to the Broker. Later after clearing that cheque he will deposit that money in to Trading Account. And the second option is to transfer money directly from our Bank Account to Trading Account through Net Transfer option. And it should have a Gate Payment Facility with your broker. Net Transfer is very fast which just take few seconds to credit your money to the Trading Account. Net transfer facility is now available with all the banks. But please Verify with your broker whether your broker has been registered for the Gate Payment with your Bank or not. Detailed Information about Selecting the best Bank will be given later in the Best Bank Section.

What all I should have to buy shares

What is A Demat Account

Demat Account is given to the Investor while registering with broker or sub broker. Demat Account is provided with an Account number. This Account would be used for all the transactions later on. Demat Account is used to keep the shares safe which we bought in the Exchange (BSE or NSE). In earlier days before the commencement of Demat Account investors were given relevant Documents for the shares they bought. And those documents (or) materials had to be kept safe with so much care. These documents had to be given to the buyer when selling. There was a problem of misusing these documents. During those days people were finding ways to change the name on the documents and selling those shares without knowing to the actual owner of particular shares. During those days cheaters were playing role. So SEBI planned to use Demat Account in order to prevent the misusing of share Documents. This Demat account is very secure than Documents. In this way all the shares will be stored in the Demat Account in electronic form. These electronic shares will be secured by Internet password and transaction password. Shares cant be transferred to third person with out entering these passwords. Now no one can sell or transfer the shares with out the knowledge of a share holder. When we buy shares, they will be added to the Demat Account Automatically. When we sell, shares will automatically be transfered from your Demat Account to Buyer’s demat account.

What is a Trading Account

Where To Buy Shares

Well, we understood what is a share, But where to buy shares from? Do we need to go to company directly to buy shares from particular company? No, that is not the process. There is an organization which controls all the functions and actions of the shares and is called as SEBI (SECURITIES AND EXCHANGE BOARD OF INDIA). SEBI protects the interests of investors in securities and promotes the development of the securities market through appropriate regulation. Under the SEBI control there are two main exchanges are there in which all the transactions and exchanges of shares occur. They are BSE (Bombay Stock Exchange) and NSE(National Stock Exchange). Owners of the company who wants to offer shares to the public at the initial will put an application to the SEBI. Then SEBI go through the company prospectus and past history of the company and sales and product details of that company and gives permission to offer shares to the public. The process of offering shares to the public initially is called IPO(Initial Public offer). And is also called as a primary market. Then after getting permission from SEBI the company will give advertisement to book shares at the primary market at a particular price.

Now people who want to buy particular company shares in primary market can rush to the banks and send application along with cheque to buy. Then after receiving all the applications company will allot shares to the applicants depends on the subscribing ratio. Then after allotting shares company will list it’s shares in BSE and NSE. Most probably the listing price will be greater than that of issue price in IPO. Now peoples who got shares in the primary market can sell their shares after listing in BSE and NSE if the share price increases. Later he can buy shares again in these exchanges if the value of shares reduces. This is called secondary market

We can’t even buy shares directly from BSE and NSE in secondary market. There are some registered brokers with the SEBI who are given license to take care of all the transactions done for shares. These brokers are called Share brokers or partners of SEBI. There will be sub-brokers who gets permission from main brokers or partners of SEBI who are allowed to do all the transactions wit the exchanges like BSE and NSE.

So one who wants to buy shares and sell shares should register with a Broker or Sub Broker. Then he can buy and sell any company shares through broker.

One who wants to invest in share market is called an Investor. When Investor is registered with the Broker Or Sub Broker he will be given a Demat Account and Trading Account. He can use those accounts for all his transactions.

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