Home » Faqs » General Queries » Basic Stock Market Questions

+ Expand AllBasic

  • Q Can i buy shares from a new IPO without having a demat account?
    A
    No, Demat account is Mandatory. Open a demat account today
  • Q How Many Demat Account a Person Can Hold?
    A
    Any number of accounts can be held, there is no restriction.
  • Q Should I need Demat Account to Purchase an IPO?
    A

    Yes, to purchase an IPO you need to have a demat account.

  • Q what is difference between brokerage account and demat account?
    A

    There is nothing like a brokerage account. Don't be confused.

  • Q what is difference between brokerage account and demat account?
    A

    There is nothing like a brokerage account. Don't be confused.

  • Q what is difference between brokerage account and demat account?
    A

    There is nothing like a brokerage account. Don't be confused.

  • Q What is the difference between trading account and demat account in share market?
    A

    Trading account helps you to buy and sell stocks and demat account is like a bank account it safely keeps the stocks bought and an account of stocks sold.

  • Q what is derivatives in stock market,how it is diffrent from equity shares?
    A

    Put simply, a derivative is something that derives its value based on some other asset. E.g. In equities, derivatives are specialised contracts / agreements to buy or sell the underlying asset (equity shares) up to a certain time in the future at a price, which is called the 'exercise price'. These contracts have a fixed expiry period, unlike equity shares, usually a month.The value (price) of the contract depends on the expiry period and also on the price of the underlying asset.Thus, derivatives are based on the underlying asset (equity) and are not equity shares by themselves.

  • Q What is the Difference between Large Cap Stocks & Blue Chip Stocks?Thanks in anticipation?
    A

    Blue chip stocks are stocks of companies which have a strong track record of performance and shareholder returns. Most of these blue chip stocks have a large market capitalization and they are also called as large cap stocks.

  • Q What is a dividend?
    A

    Dividend is the portion of company's earnings distributed to its shareholders.

  • Q What is stop loss in sharemarket?
    A

    Stop loss in sharemarket means a level of share price at which an investor limits its loss on a stock. This level has to be specified in advance and if a stock falls to that price level the stock automatically gets sold so as to reduce any further losses.

  • Q Minimum Amount That Can Be Invested In Share Market Various Investment?
    A

    Depends on individual person and his allocation to equity.

  • Q What do investors seek in return of their investments?
    A

    Investors mainly seek stock price appreciation as well as dividends in return of their investments.

  • Q What is share market and how to buy shares online?
    A

    Share market is a place where various participants carry out trading of shares and derivatives of various companies at an agreed price. The first step to buy shares online is opening an online account with any broker which offers this facility.

  • Q What is the meaning of disinvestment of public sector enterprises?
    A

    Disinvestment of public sector enterprise is a process where government reduces its equity holding and sells it to private parties.

  • Q Tax benefits of share market invesments?
    A

    One can avail tax benefits through Rajiv Gandhi Equity Savings Scheme if they are first time investors in share market. First time investors can make an investment upto Rs 50,000 and can enjoy a tax deduction of 50 percent of such investment. Also, one can also invest in Equity Linked Savings Scheme (ELSS) of mutual funds for availing tax benefit.Moreover, long term capital gains (sale of shares held for more than one year) are tax free, if shares are sold through stock exchanges.

  • Q How many minimum shares I can buy with BSE?
    A

    The minimum number of share you can buy from BSE is 1.

  • Q What is meant by illiquid stocks that will be traded separately in exchanges ?
    A

    The state of a security or other asset that cannot easily be sold or exchanged for cash without a substantial loss in value. Illiquid assets also cannot be sold quickly because of a lack of ready and willing investors or speculators to purchase the asset. The lack of ready buyers also leads to larger discrepancies between the asking price (from the seller) and the bidding price (from a buyer) than would be found in an orderly market with daily trading activity.

  • Q Can I dematerialise any share certificate?
    A

    Yes. By surrendering your physical share you can dematerialise your physical share certificates.

  • Q What is the meaning of dematerialisation?
    A

    Dematerialisation is a process of converting physical share certificate into electronic form.

  • Q What is the settlement period?
    A

    It depends upon segments generally its T+2 for Cash and t+1 for Derivative. But same may get impacted due to banks holiday, Such changes takes place post exchange confirmation only.

  • Q What is Bear and Bull market?
    A

    Bear market is where the trend of market prices is low and expectation are even lower. It's the right time for scouting for value in the stock market. This phase presents an opportunity to pick stocks at right prices. Bull market is where the general expectation and trend in the market is of stock prices going up. It's of exuberance and excitement of stock prices moving up. It's the happy face of the market.

Why Demat Account?
  • Mandatory by SEBI
  • Easy Portfolio Management
  • Security of Equity Investments.
Reach Us
Read about share market basics

Read More >