Back in 2011, when I joined my job, I accidentally got a DEMAT ACCOUNT through a 3-in-1 Bank Account.
I decided to start investing purely for the lure of returns. One fine day I decided to start the process and was looking for some Online Tips on the best shares to buy.
I zeroed in on Shares of Lupin. Executed the buy order on ICICI Direct Stock Broker. Finding out how to place an order on the ICICI Direct platform was in itself a great challenge. Platform used to be clumsy. After great difficulty, I placed a buy order for a few shares of Lupin.
I was happy that I made my first-ever investment. That evening my Uncle came home. He is a stock market veteran. I was elated to tell him that I bought my first stock today.
I was expecting him to ask - “Which Stock did you buy?”
Instead, he asked - “How did you buy it?”
I replied - “Through the ICICI Direct platform”
He said - “Today is a Saturday. Markets are on holiday. How did you buy it? The order you would have placed would have been rejected. Check again.”
I was quite embarrassed. I didn’t even know the markets are off on Saturdays and Sundays and it operates between 9 AM and 3:30 PM.
Then I told him that I would buy it on Monday.
I also asked him if my money goes to the company directly when I buy its shares.
He said - “No, it does not go to the company”.
I was again puzzled. I was thinking - “To whom does it go then?”
Then I realised that I needed to study more to avoid future embarrassment in front of my Uncle.
So that’s how my journey started.
In this Foundation Series, we will cover the basics of the stock market from scratch so that you know what you are doing.
"Risk comes from not knowing what you're doing." - Warren Buffett
Here is a chart that covers most of the entities involved in the operation of the Indian Stock Market.
We will cover each of these in greater detail in the upcoming posts.