Frequently Asked Questions (FAQ)

About the Share Market

  1. How does the share market work? The share market operates through a two-step process. Firstly, a company goes public by issuing an Initial Public Offering (IPO) and gets listed on the primary market. Subsequently, the listed shares are traded in the secondary market (stock exchange). Investors can then buy and sell these shares at prices determined by market demand and supply.

  2. Can I invest Rs 500 in the share market? Yes, you can invest even Rs 500 in the share market, provided there are stocks available at that price range.

  3. What is Sensex and Nifty in the share market? Sensex (Sensitive Index) and Nifty 50 (National Stock Exchange Fifty) are Indian stock market indexes. Sensex represents the Bombay Stock Exchange (BSE) benchmark index, while Nifty represents the National Stock Exchange (NSE) benchmark index. Both these indexes act as indicators of the overall health and performance of the Indian stock market.

  4. When does the share market open? The Indian stock markets (NSE and BSE) operate from Monday to Friday, between 9:15 am to 3:30 pm.

  5. What is the pre-open market in NSE and BSE? The pre-open market in NSE and BSE starts at 9:00 am and continues until 9:15 am. It allows for trading before the regular trading hours. The 15-minute pre-open market is divided into an order entry period (9:00 am – 9:08 am), an order verification period (9:08 am – 9:12 am), and a buffer period (9:12 am – 9:15 am).

  6. What is an IPO in the share market? An IPO (Initial Public Offering) is the process by which a private company becomes a public company by issuing its shares to institutional investors and the general public for the first time on the primary market. This enables private companies to raise capital and become publicly listed companies.

  7. What is intraday in the share market? Intraday refers to buying and selling stocks on the same trading day. Intraday traders do not intend to hold positions overnight and aim to profit from short-term price movements.

  8. What is the right time to invest in the share market? Experts suggest that the best time to invest in stocks is during a bear market (when stocks are on a downtrend). Buying during major corrections can provide opportunities for substantial gains. It is important to focus on a well-thought-out investment strategy and not try to time the market.

  9. What are the benefits of holding a Demat account? Holding a Demat account offers various advantages, including convenient electronic holding of equities and bonds, reduced paperwork, and transaction costs. It also minimizes the risk of fraudulent activities and ensures timely delivery of shares.

  10. How long does it take to open a Demat account? Typically, it takes 48 to 72 hours to open a Demat account, provided all the required financial details and documents have been furnished.

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