How To Invest In Share Market, Stock Market Investment | My Espresso

How to Invest in the Share Market?

Warren Buffet, the legendary investor, defines, “investing is the process of laying out money now to receive more money in the future”.

Published on 19 January 2023

Simply put, making an investment in the stock market can help you grow your money over time. But, investing in the share market could be tricky if you do not know the process well. For beginners, it’s vital to be aware of the risks involved. However, there are now several tools available on the internet, including video guides, blogs, tutorials, paid courses, etc., which can make your investment processes more streamlined.
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Curious to learn more about how to invest in the stock market? Read on!

What is a Share Market?

The Indian share market is where the shares of a company in India are publicly issued and traded. But, what is a share? A share is a small part of the company that common investors and traders can buy/sell in the share market. A share certificate is a document that certifies that you are one of the validated owners of the company.

Traditionally, the share market was the formal marketplace where traders met and bought and sold the company shares by exchanging the share certificates in lieu of money. Currently, these share certificates are traded electronically in a ‘dematerialized’ format. Online share market trading has made the entire process more transparent and flexible.

Essential Steps for How to Invest in Share Market?

As a novice, the process of how to invest in stock market of India can seem a little complicated. It will require you to open a few accounts and fulfil a number of formalities first. The below-listed processes will help you to gain more knowledge about the same.

  • Make Sure You Have a PAN Card with the Right Information Printed

You must be already having a PAN card, irrespective of the fact that you’ve never invested in the stock market before. But there might be the possibility of your PAN card having issues with the spelling of your name or likewise. So, make sure that you have an error-free PAN card in order to be able to qualify as an investor in the first place.

  • Sign Up with a Reliable and Trustworthy Stockbroker with Established Experience

The share market is a tricky place. You cannot just go around and buy shares with some cash; and for beginners, things can get really tough. So, try and get in touch with a professional stockbroker. They are the authorized personnel who are well-versed with the processes and strategies related to buying and selling of shares. However, while hiring them, make sure you check the reliability through online reviews and testimonials.

  • Open a Trading Account to Trade and Demat Account to Store the Shares/ Stocks

Once you are done with the first two processes, you now will have to open a trading account and a Demat account. The Demat account will actually hold your shares in a digital and Dematerialized form. This is important because shares are not given in the physical forms any longer. So, whenever you trade shares in the market, the total number of shares will get credited or debited in/from your Demat account.

Now, the next step would be to have a trading account. This will have the link between your bank and your Demat account. Your trading account will take the shares from your Demat account and sell those in the share or stock market.

  • Make Sure to Get a UIN (Unique Identification Number) for High-Value Transactions

If you plan to get involved in a single transaction of more than ₹1,00,000, you will need a UIN. In case you do not have a Unique Identification Number yet, you will not be able to take part in transactions equal to or greater than ₹1 lakh.

  • Get Your Bank Account Linked to Your Demat and Trading Account

Your bank account should be linked to your Demat account and your trading account. This is because whenever you’ll buy a share, the amount will get debited from your bank account, and the shares will get credited to your Demat account.
Also Read: How to Transfer Money from Demat Account to Bank Account?

Again, when you sell a share, the amount will be credited to your bank account, and your Demat account will be debited with the total number of shares sold. For this reason, linking all your accounts is essential.


Once you are done following the above-mentioned steps, you can now start trading on the share market. Remember that market-linked investments, such as share market or stock market investments, are subject to volatility. So, make sure to read up a bit on the basics, partner with the right broker, keep a close eye on the market movements, to begin with, and ensure you follow the above-mentioned tips. Happy investing!
Also Read: Steps of Purchasing and Selling of Shares Through Demat Account

Chandresh Khona
Team Espresso

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