Investing may appear to be inaccessible and perplexing. However, it’s a very straightforward notion. An online stockbroker is the most convenient way to purchase stocks. You may buy stocks on the broker’s website in minutes after creating and financing your account. Using a full-service stockbroker or purchasing shares directly from the firm are two more possibilities. In addition, you can check out the licensed forex brokers in kenya for options.
Here is a list of questions and their answers that will help you get acquainted with the concept of stocks-
- Should I invest in Unlisted Stocks?
Investing in unlisted stocks demands experience and a thorough understanding of the stocks. Unfortunately, beginners frequently lack this information and may suffer losses as a result. However, if you are just concerned with the company’s future growth, you should consider investing in unlisted stocks.
- How much research do stocks require?
If you’re trading rather than investing for the long term, you may rely on historical charts, price patterns. However, if the investment duration is more than a year, you must research the company’s fundamentals, examine financial statements, conduct competition analysis, and so on.
- How to apply for an IPO online?
Using your trading account, you may invest or apply for an IPO online. On the trading platform, look for the Ipo and enter the number of shares you wish to acquire and the price. then press the submit button
- How can I get the financial report of a company?
All of a company’s financial reports may be found on the company’s website or at stock exchanges (NSE or BSE). You may also obtain a copy of the company’s annual report and thoroughly examine the financial figures.
- How many returns can I expect?
The returns are determined by the performance of your performing and non-performing stocks. Certain stocks will perform well while others will not, affecting your results when you have a well-diversified portfolio.
- Can I have multiple Demat accounts?
Yes, You can have multiple Demat and trading accounts. However, you can only have one account with one Ecn broker list. If this rule is broken, a maintenance fee will have to be paid for each account.
- How many stocks should be there in my portfolio?
It depends. An overly diversified portfolio is difficult to track and does not provide excellent outcomes. On the other hand, if you have a few companies in your portfolio, a drop in one of them will negatively influence the rest of your portfolio.
- Is there a fixed time for buying stocks?
Yes, you may only trade on weekdays from 9:15 a.m. to 3:30 p.m. However, beyond these trading hours, you can place AMO orders.
- How many sectors can I invest in?
In the stock market, you may invest in 11 different areas. This sort of industry classification aids the portfolio manager in building a varied portfolio and more efficiently allocating assets.
- Is it safe to invest when the market is high?
Create a watchlist and keep an eye on the stocks in this situation while the market is high. Once you’ve found several attractive stocks, average them out to minimize your odds of buying them at a high price.
We Hope These questions helped you get answers to some important questions about the stock market and stocks.
George is the Chief Market and Broker Analyst at brokertested.com. Prior to being recruited by brokertested.com, I served SVS Securities as Chief Market Analyst for two years. Earlier, he joined Morgan Stanley in Nov 2013 as Research Analyst.
George is a well-rounded financial services professional experienced in fundamental and technical analysis, global macroeconomic research, foreign exchange and commodity markets and an independent trader.