The Internet has revolutionised business by integrating world markets into one giant market. This makes it possible to buy and sell shares from anywhere in the world, which is a boon for stock traders and investors. They don't have to visit a broker's office to view stock charts for investing, and they avoid the tedious trading procedure. However, if you wish to buy shares online, you will need a laptop or personal computer that is capable of accessing the Internet. For buying shares online in India (this procedure is for residents of India only), you are required to follow certain steps.
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To buy shares, whether offline or online, you are required to open a "demat" account with any registered brokerage firm. ("Demat" refers to a dematerialised account in which shares are held electronically, rather than in certificate form). A demat account is mandatory for buying shares in India.
Next, you need to create an online trading account with a brokerage firm that facilitates online trading. An Internet search will list many companies, including NirmalBang.com, Reliance Money, and ShareKhan.com. You must provide the details of your demat account. You will be provided with a trading code number, under which the account of all your transactions will be maintained. You also will have to download special software for selling and buying of shares.
Deposit money in your trading account using an online bank. (You need an online bank account to buy shares online, but most banks in India provide this service). Check with your desired bank to make sure they provide online banking services.
Once your online trading account is opened, log in to your account for buying shares. A list of companies trading on the Bombay Stock Exchange and National Stock Exchange will be displayed, along with their share prices.
Click on the share you wish to buy. The box will appear for you to specify the number of shares you wish to buy and the price at which you want to buy. Suppose the listed price is Rs. 350 per share, but you want to buy at Rs. 325 per share. You would then type "325" in the box. When the prices of share fall to 325, the shares will be credited in your account automatically. If you want to purchase the shares at the listed price, then fill '0' in the price box. To purchase, click the buy option. Shares will be credited to your trading account.
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