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Investment through Secondary Market

Investment through Secondary Market

3. Investment through Secondary Market

  • Definition: Investment through the secondary market involves buying or selling shares of a company that is already listed on a stock exchange.
  • Process: To invest, you need to open a trading/broking account with a SEBI registered stock broker of a recognized stock exchange.

Key Concepts for Placing Orders

  • Modes of Placement: Orders can be placed through various modes, including:
    • Mobile Trading App: Using a broker's mobile app to place orders.
    • Online Trading: Placing orders through a broker's website.
    • Call & Trade: Using the phone to place orders with the broker.
    • Physical Order: Visiting the broker's office to place orders.
    • Authorized Persons: Placing orders through authorized persons of stock brokers.
  • Important Considerations:
    • Always use a SEBI registered stock broker or Authorized Person for buying or selling shares.
    • Keep a record of all orders placed with the broker for trading in the secondary market.