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Showing posts from December, 2022

What Are The Advantages & Disadvantages Of Investing In The Stock Market?

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A wide range of investment avenues are available for investors to grow their savings, such as equities, fixed deposits, Public Provident Funds (PPFs), mutual funds, etc. Stock markets have a history of outperforming returns compared to other alternatives and financial instruments. However, achieving higher returns involves taking additional risks and successful investors have a clear understanding of their risk appetite. While investing in the financial markets has its own benefits, you should also be wary of its pitfalls.  The stock markets can be very volatile, and even a small event can sway the markets in either direction. An ideal way to manage your risk in the markets is to hold a diversified portfolio that ensures consistent returns from a portion of your stocks, even if some of your holdings underperform or generate muted returns. Investors beginning their journey into the stock market must be aware of its innate volatility before making an investment. Investing in the stoc...

Everything You Need to Know About Demat Account

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    A demat account is necessary for anyone who wants to step into the world of stock trading. One must understand the functioning, types, and uses of this account to use it to its fullest potential. It is an electronic account where an investor or trader can store all his share market holdings digitally. There is no scope for theft, forgery, duplication, or damage to the share certificates one holds in this account. Converting the physical share certificates into their digital form is known as dematerialization. Share market enthusiasts can trade or invest in the share market from anywhere using the online demat account . It has made trading and investing quick, straightforward, and cost-efficient for the new-age investor. There are majorly four types of demat accounts - Regular Demat Accounts, Basic Services Demat Accounts, Repatriable Demat Accounts, and Non-Repatriable Demat Accounts. This account equips an investor with a digital and secure platform to hold his share cert...

What Is The Contrast Between Demat Account And Trading Account?

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Indian stock markets are expanding significantly and alluring more investors. Any individual can take advantage of stock market investments for short-term or long-term gains. You need a demat account and a trading account with a stockbroker to enter the stock market. Approaching the stock market is convenient with demat and trading accounts. These are two different accounts, but their working system is connected closely.  For an easy understanding of the fundamental difference between a demat account and trading , a demat account stores your equities and other securities, and a trading account reflects the flow of trade transactions over a period. Both accounts are assigned unique IDs that are used during the trading process.  In the earlier outcry trading system, if individuals intended to invest funds in the stock market, they had to visit ground-based stock exchanges and keep shouting to place desired calls on buying or selling securities. There were issues with the safety ...