6. How Do I Buy and Sell Shares in the Stock Market?
Buying and selling shares in the stock market is a straightforward process that requires a Demat and trading account. Here’s how you can trade stocks:
Step-by-Step Process to Buy & Sell Shares
- Open a Demat and Trading Account
- Choose a stockbroker like ATS and open a Demat + Trading account.
- Complete KYC verification by submitting PAN, Aadhaar, and bank details.
- Fund Your Trading Account
- Transfer money from your bank to your trading account.
- Brokers allow payments via UPI, net banking, or bank transfers.
- Place a Buy or Sell Order
- Log in to the trading platform and search for the stock (e.g., TCS, Infosys, Reliance).
- Choose order type:
- Market Order – Buy/Sell at the current market price.
- Limit Order – Buy/Sell at a specific price.
- Trade Execution & Settlement
- Once matched, your order is executed, and the transaction is settled within T+1 days.
- Buy Order: Shares are credited to your Demat account.
- Sell Order: Shares are debited, and the money is credited to your bank account.
Example: If you buy 10 shares of Infosys at ₹1,500, ₹15,000 will be debited, and the shares will be added to your Demat account.
Comparison: Buying vs. Selling Shares
| Action | Steps | Final Outcome |
|---|---|---|
| Buying Shares | Place a buy order, funds deducted | Shares credited to Demat account |
| Selling Shares | Place a sell order, shares deducted | Money credited to bank account |
Key Takeaways
- Demat & trading accounts are mandatory for stock trading.
- Fund your trading account before placing buy/sell orders.
- Orders can be placed as market or limit orders based on price preference.
- T+1 settlement ensures quick transfer of shares or funds.
- Use online trading platforms for seamless transactions.