Thread by @finologyticker

How to invest in the Indian Stock Exchange?

A thread🧵

For all the potential investors, who want to enter the market seeing all the hype and wondering where to start, this is for you.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝗮 𝘀𝘁𝗼𝗰𝗸 𝗲𝘅𝗰𝗵𝗮𝗻𝗴𝗲?

A stock market is a place where people can buy and sell pieces of companies in India.

What?? I don't get it.

It works like this.

If you start a company with your own money and build it into a big business, you're really happy.😁

Except you have one issue.

𝗬𝗼𝘂 𝗼𝘄𝗻 𝘁𝗵𝗲 𝗲𝗻𝘁𝗶𝗿𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝘆.

Wait a minute, if I own the whole company thať's cool right?

This sounds really cool and it can be great because you get to keep all the profits of the company. 🤑

But whenever something goes wrong, and the company loses money, you also lose a lot of value. 😓

So you have a lot of your risk concentrated in this company.

But maybe you can live with that because you're making a good salary and saving a lot every year.

But now let's say you want to grow the company even bigger.

You could take some more of your savings and invest that into the company by buying more machines and hiring more people.
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BUT......

That makes the situation even worse from a risk perspective.

You are now doubling down and risking your savings on the future of this company.

If something goes wrong, you stand to
lose even more.😲

𝗧𝗵𝗲 𝘀𝘁𝗼𝗰𝗸 𝗺𝗮𝗿𝗸𝗲𝘁 𝗵𝗲𝗹𝗽𝘀 𝘆𝗼𝘂 𝘀𝗼𝗹𝘃𝗲 𝘁𝗵𝗶𝘀 𝗽𝗿𝗼𝗯𝗹𝗲𝗺

Instead of putting your own savings into growing your company, you can ask other people to chip in.

You do this by going to the stock market and selling the "𝘀𝗵𝗮𝗿𝗲𝘀" of your company.

Each share is like a little piece of ownership of the company.

Now lots of other people are chipping in their savings and helping you pay for those new machines and to hire more people.

In exchange, you are giving them some share of the profits.

All the people who bought shares now own the company with you.

Now there are these little pieces of your company, called 𝘀𝗵𝗮𝗿𝗲𝘀 trading on the open market.

That market is called the Stock Exchange.

India has two of these leading stock exchanges, namely:
1. National Stock Exchange
2. Bombay Stock Exchange

So this is for the rich guys only, right?
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NOPE!

Anyone can invest in the stock market.

What do I need?

To Get Started on the Stock Market - You need

1. Savings Account
2. Demat Account

You can find where to open an account & its process here select.finology.in/demat-account-…

𝗪𝗵𝗮𝘁'𝘀 𝘁𝗵𝗲 𝗺𝗶𝗻𝗶𝗺𝘂𝗺 𝗮𝗺𝗼𝘂𝗻𝘁 𝘁𝗼 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁?

There is no minimum limit to start investing in the Indian stock market.

You just need to have sufficient funds to buy a stock depending on its share price.

Great!

Now how do I find which shares to invest in?

You can visit ticker.finology.in and search for a brand you like or a company you know of.

- Analyse it using custom ratios
- Compare with Peers
- Find its Fair Price
- If it's good & undervalued, Buy it.
- Else add in Watchlist.

All this can be done in one place?

NO.

You can only analyse from ticker. For investing you need a broker which you can find from Select.

Happy Investing💙