With so many options available, picking the right stock for your portfolio can be a challenge. The basic rule while buying stock is to keep your financial goals in mind. Some may look for growth, while some may look for dividend income. The next logical step is to conduct a stock research. Look at the company's income statement, cash flow statement, balance sheet, management's future plans, debt figures, etc. Once you've accumulated the facts, analyse the data. If the EPS (earnings per share) is good, it means that the company is making profit on a per-share basis. The market appreciates stocks which show a growth trend of EPS. You can also use a screener to narrow down the list of stocks based on any criteria like industry or sector. Avoid small-cap companies and go in for mid-cap and large-cap ones. You can also conduct a technical analysis using the tools and charts available online. If you still need guidance, approach a stockbroker like Angel Broking who will guide you to pick the best stocks.
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India. The investment market needs to be regulated by rules for smooth trading. SEBI ensures the smooth functioning of the stock market and protects the interests of investors, issuers and intermediaries like stockbrokers. SEBI helps in the prevention of malpractices and fraudulent means through self-regulation of business and statutory regulations. It frames a code of conduct which has to be followed by bankers, brokers, underwriters, etc. It also approves the by-laws of stock exchanges and amends them, if necessary. SEBI inspects the books of accounts of financial intermediaries and stock exchanges. It checks price rigging and prohibits insider trading. It also educates investors to evaluate and buy profitable securities.
You will find most of the information you need on the broker's trading site. The trading interface on the brokers’ site provides real-time stock quotes through charts. It also contains a wealth of information about the latest stock market trends so that you can make a more informed decision while trading. The online interface also displays a list of top-performing stocks, information on gross profit and loss, dividends, shareholder benefits, etc. Moreover, you will also find stock information of your buy/sell transactions on the broker's trading site. It provides research tools and technical analysis, helping you to build your financial future on this wealth of information.
You can buy stocks either through a broker's online platform or directly from a company through direct stock purchase plans (DSPP), though few companies have the option of DSPPs. An investor can open an account by depositing either stocks or cash in a brokerage account. You can choose between a full-service broker and a discount broker. A full-service broker offers expert advice and manages your account, but their services come at a high cost. Discount brokers, on the other hand, are cheaper but offer little individual attention. If you wish to trade on your own through the internet, make sure you are well-versed with the terminologies and the working of the stock market. Make the right choice of stocks based on your financial goals and use the trading strategy which is best-suited to meet those goals.