6 Steps to Invest in Stock Market for Beginners

Investing in a stock market is not an easy task. It can be quite overwhelming especially when one is a beginner. There are some formalities that are required to be fulfilled before beginning one's journey in the stock market. It will become complicated if ones do have the proper guidance about what to do and when.

However, there is nothing to stress about as one can easily learn how to invest in the share market with the help of the following tips. These include:

• PAN Card: Obtaining the PAN card is the primary step as no financial transaction can be executed without it. They are the compulsory requirement for the purpose of buying and selling online shares. Mostly everyone even if they are not the investor has a PAN card thus this will be a non-issue for the majority of people. However, one must be certain beforehand that there is no mistake in your PAN cards such as name or other aspects. 
• The hiring of a stockbroker: To start investing in the stock market, one needs to hire an individual who is authorized to buy and sell securities. This is because the stock market is not where one can directly buy and sell securities. There is some regulated procedure that is to be followed. This is done with the help of stockbrokers who will provide you will all the required guidance in filling all the formalities. 
• Opening of Demat Account: In India, shares are no longer in the physical form but in a digital form. Because of which the opening of a Demat account has become mandatory if one to trade in the Indian stock market. The shares get credited and debited to one Demat account whenever buying or selling of shares takes place. Another important step is to open a trading account. This links one Demat account with the bank account. This account takes shares present in the Demat account and sells these in the stock market. 
• Bank Account: The bank account is linked with both Demat and trading account for smooth flow of the transaction. When one buys a share, the money is debited from the bank account and simultaneously the shares get credited to the Demat account. Without the proper link between one's bank and Demat and trading account the investing in the stock market cannot take place.
• UIN: The next step is to see whether one needs the unique identification number (UIN) or not. The UIN becomes essential when one is undertaking a transaction involving an amount of 1 Lakh or more. 

Buying and Selling: After all the required formalities are done, one can finally start buying and starting in the stock market. To do so one has to inform their stockbroker about the company ones wants to invest in and also how many shares are to be bought. 

Hence, these are steps that are required to be fulfilled to start investing in the stock market. The selection of a broker is very essential to make the whole process a success. This is why one must trust 5paisa which provides all the required guidance to the investor so that everything happens in a smooth manner.