It is no secret anymore that the shortest route to make good money in legitimate ways goes through the share market. People invest anywhere from a part of a month’s salary to their lifelong savings. Sometimes it works and sometimes it doesn’t. Well honestly though, all of this depends upon how the stock in which the money has been invested plays out. The stock has a history of making people rich since the 17th century. It was then when the concept of the stock market was materialized. And ever since then there has been no going back. Countries after countries have established stock markets with open arms. Mumbai has 2 stock exchanges viz. BSE & NSE. The difference in both of these stock exchanges is quite subtle. These exchanges act as a list of stocks present at that stage. A stock can be listed on more than one stock exchange. But there would be a bit of difference even a bit of to avoid being identical. This change can be in terms of price, registered name, or any other such parameters. The two most popular stock exchanges in India are National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). To operate shares a Demat account is necessary. There are plenty of online trading platforms that offer these services.
A Demat account is an account that is used to store shares in electronic form. The very basic need to open a Demat account was to eliminate the storing of shares on paper. Switching to a Demat account has not only been convenient in terms of trading but in a couple of more aspects too. Like security, with the advent of the Demat account stealing of shares is almost redundant as shares are no longer something physical that are with their owners. Demat account has also made the whole process more efficient by shortening the whole time needed to make that transaction. In the saved time other transactions can be made.
Well, all of these lucrative features-loaded Demat accounts do not come for free. Some of the Demat account charges are listed below:
- Opening fee: This fee is charged when the account is opened for the first time. While some charge some entities do not charge this fee.
- Maintenance fee: This fee is charged either every year or per month basis. Some firms charge this fee in advance. This fee is also known as the folio maintenance fee.
- Transaction fee: This fee is charged for every transaction that is made. No matter how insignificant. The fee differs from buying to selling. This varies from platform to platform depending upon how much they charge.
The stock market is an excellent place to make great money over a little time. But this should only be entered after being aware of all the ways and means of the stock market. Even an excellent stock bought at the wrong time can prove to be fatal. So the purchases made should be analyzed and thought over properly.