Before you start investing in the stock market, it is vital to get the fundamentals right. Let’s take a look at the 15 most commonly asked questions in the stock market.
You cannot trade after market hours, i.e., after 3.30 pm Monday to Friday. However, you can place orders after market hours, which is referred to as aftermarket orders.
Yes, the trading hour is between 9.15 am to 3.30 pm on working weekdays (Monday to Friday).
You can find stocks of good companies using many tools, such as the best stock screeners, as they allow you to filter the stocks based on various parameters like market cap or valuation etc.
Stock research can be based on fundamental data and technical indicators. You can look at the price trends, historic data, charts, company financials, competitor analysis, etc.
You can find the company’s financial report and annual report on the websites of both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Undervalued stocks are priced lesser than the fair price. You can use fundamental and technical analysis to evaluate the fair price of the stock.
Bluechip stocks are relatively stable as the companies are well-established, where as Small-cap stocks have higher growth potential. However, the investment decision should be based on the company’s future prospects.
To trade in the stock market, you need to open a demat account and a trading account with a broker or a sub-broker registered with SEBI.
There are 11 different sectors in the equity market as classified by GICS (Global Industry Classification Standard) based on NSE classification. This categorisation helps the investor build a diversified stock portfolio.
Yes. It is mandatory to have a Demat account to apply for an IPO in India. The IPO alloted shares are transferred to the investors’ Demat account.