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.