Investing in stocks is an exciting thing for new and seasoned investors alike but, at the same time understanding how to invest in stocks and which the best stocks to invest in are is crucial.
This blog piece is a crash course on how to invest in stocks and will cover everything from what the stock market it to how to buy shares and more.
The beautiful thing about investing in stocks is that as a stock owner you own a small piece of the business you invest in. So if you buy a stock for Apple then you essentially own a part of the company, however big or small. Before we jump into this, let’s cover some of the basic questions.
What Are Stocks?
A stock is a share or part of a company that entitles the shareholder to a fixed dividend and the payment of these dividends takes precedence over ordinary share dividends. A stock can be purchased or sold on the stock market as the value of the stock fluctuates on a daily basis.
While you are considering whether or not to invest in stocks, you should also use our free tool to analyze your current mutual funds investments.
Investing in stocks is a great way to create wealth and grow your money. Although the value of individual stocks rises and falls on a day to day basis, the market overall has always shown a positive and upward trend. As far as investments go, the stock market offers the highest potential returns.
How to Invest Money in Stocks?
The first step to investing in the stock market is to get a broker or a Robo-advisor like Cube Wealth. The broker is necessary for you to buy or sell shares. They are individuals or companies who charge a commission for their services and are registered and are authorised to trade on the stock exchange by the Securities & Exchange Board Of India (SEBI). Your broker will ask you to open a Demat and trading account in which you will hold the stocks that you buy.
While there are experts who make a living on predicting the stock market – it is impossible to time the market. So while you can look at the SENSEX or NIFTY, it is best to steer clear of day-to-day trading unless you’re cued in to the market and make a living out of it. The best way to invest in stocks is through a broker or via the mutual fund route using a wealth management app like Cube Wealth which will help you minimize risk and give you free investment advice.
Ans. The prices of stocks vary depending on the company the stock belongs to. These prices can range from as low as Rs.1 to lakhs of rupees depending on how much you buy and which stock you’re investing in.
Q. Are stocks really a good investment?
Ans. Yes, stocks are a really good investment for anyone who has a decent risk appetite and is investing for the long term. It is one of the best ways to create and grow your wealth.
In case you are open to also investing in the US stock market from India, this video by Team Cube will help you understand how you can do so!
Rishabh P Nair
Rishabh P Nair is the Head Of Brand Content at Cube Wealth, the Financial Freedom App with a smart Perfect Portfolio Planner. Rishabh has been weaving stories for over 10 years and prides himself on building brands with a strong identity.
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on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!