To invest in stock is not an easy task. If you don’t know the basics of the market, then it won’t be possible for you to have profitable investment in stock market. It is very confusing for the newcomers to invest. There are many brokers whose help you can take to invest to get profitable return, but they charge you their brokerage for it. There are many direct investments also done where you buy the shares directly from the company. The NRIs and the foreign nationals also face this problem; they don’t know how to invest and where to invest
A stock broker is an agent between the investor and other buyers/sellers. Once the broker opens a Demat account in the name of the person investing, the client can sell or buy shares according to the preference of the investor or client. You can consult a broker and then learn the basics of the buying and selling through them. There are many plans that allow you to bypass the brokers and buy and sell the stocks directly. To buy or sell any stock you have to be the member of the stock exchange. All the registered brokers are generally listed in the directory of the BSE or NSE. Select a brokerage firm that suits you and your requirements and is trustworthy.
Stock certificates are generally in the name of the brokers and are known as street names. This street name makes it easy for the broker to buy and sell the shares. The broker does whatever the client’s orders him to do, but he also advised as to what the best is. The broker should have a good name and should be reliable. If you don’t trust your broker it is not possible for you to business with him/ her. It is very easy to open account with broker and is very similar to opening regular bank account.