Showing posts with label bonds. Show all posts
Showing posts with label bonds. Show all posts
Wednesday, August 19, 2015
How to Bid on the Stock Market
Choose a ticker symbol that interests you and that you would like to buy if the price is right. The stock market does not limit you to just corporate stocks. You can also bid on the purchase of gold, foreign stock market indexes or individual sectors through the use of exchange-traded funds and also government bonds.
Enter the ticker symbol for your desired investment instrument into your stock broker's trading platform, if it is an electronic system or call your broker to place an order.
Place a 'limit' order for your desired ticker at your bid price. When you make a bid, you are advertising to the market the price you are willing to pay for the instrument. A limit order locks in a maximum price you will pay and is the stock market's equivalent to raising a bid sign at a live auction. As part of your limit order, you must include the total number of shares you wish to purchase.
Wait for your order to be executed. If the stock market trades your desired instrument at a price that meets the criteria of your bid, your limit order will 'fill' and you will now own the shares. However, the key distinction of a limit order is that execution is not guaranteed. Thus, if other bidders are willing to pay more than your bid, the market will likely not trade down to your price, and your order will sit without execution.
Cancel the limit order at any time you choose if you either change your mind, want to enter a new bid, or accept that the market is unlikely to trade at your bid price so you get a fill.
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Tuesday, August 18, 2015
How to Be a Stock Broker in India
Take a course in stock brokering. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), among other institutes, offer certified courses in stock brokering. These courses are related to capital markets, investment, financial planning, equity research, securities and portfolio analysis and other certificate courses.
Work at a stock brokering firm. One of the criteria for becoming a stock broker in India is to have a minimum of two years' work experience at a stock brokering firm or in a field related to securities or financial services.
Determine what type of services you want to offer as a stock broker. Some brokers offer a wide range of financial products such as stocks, bonds, derivatives and insurance. They may also offer services that include investment advice, investment strategies and in-depth research and analysis. Other brokers may only execute trades without offering investment advice, and may charge lower fees.
Ensure that you have adequate infrastructure and finances to register and operate as a stock broker. One of the criteria the Securities Exchange Board of India (SEBI) considers while evaluating your application as a stock broker is whether you have the required office space, equipment and manpower to work effectively as a stock broker. If you intend to become an online stock broker, you must provide a reliable online stock trading platform that offers access to stock exchanges and depositories and functions without technical glitches.
Register as a stock broker with SEBI. Stock brokers in India are governed by the SEBI Act of 1992, which requires stock brokers to first register with SEBI, who will evaluate your application to see if you are eligible to become a stock broker before issuing you a registration certificate.
Become a member of a stock exchange. Besides registering with the SEBI, stock brokers must become members of one or more stock exchanges such as the NSE and the BSE. The application forms are closely evaluated by the exchanges before granting membership. Most major exchanges require stock brokers to pay a security deposit and a membership fee, which usually involve a considerable expense.
Market your services as a stock broker to attract clients. Word-of-mouth publicity and customer referrals are usually the best ways to get more business as a stock broker. If your portfolio performs well, leverage that to win the confidence of potential customers.
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