What are the various methods, which I can invest in shares?

The basic question ?閿熸枻鎷穉???"Why need I invest??閿熸枻鎷穉???? merits interest before we move on towards the larger question of why one should invest in shares. Simply place, you would like to invest in order to produce wealth. Whilst investing is relatively painless, its rewards are plentiful. To know why you need to invest, you need to realise that you lose when you just conserve and do not invest. That is simply because the worth with the rupee decreases every year because of inflation. For example, if you ran a household inside a spending budget of Rs100,000 in 2000, to run the same household today (assuming the same set of expenses) you would most likely require Rs125,000--that's Rs25,000 added to your spending budget due to inflation! Thus you need to create an extra Rs25,000 and that will be possible only byPurchase shares from the main market (ie IPOs)The first time that a company?閿熸枻鎷穉??a?閿熸枻鎷穝 shares are issued towards the public, it is by a procedure known as the initial public offering (IPO). In an IPO the business offloads a particular percentage of its total shares towards the public at a certain price. Most IPOs nowadays do not have a fixed offer cost. Instead they adhere to a method known as the bookbuilding procedure, exactly where the offer cost is placed inside a band or perhaps a range using the highest and the lowest value (refer towards the newspaper clipping on this page). The public can bid for the shares at any cost in the band specified. As soon as the bids come in, the company evaluates all of the bids and decides on an provide cost in that range. Following the provide cost is fixed, the company either allots its shares to the peoplewho had applied for its shares or returns them their money.Trade in the secondary marketplace, ie stock exchangesOnce the offer cost is fixed and the shares are issued to the people, stock exchanges facilitate the trading of shares for the common public. As soon as a stock is listed on an exchange, individuals can begin trading in its shares. In a stock exchange the current shareholders sell their shares to anyone who's prepared to purchase them at a cost agreeable to each parties. Individuals cannot purchase or sell shares in a stock exchange directly, they've to execute their transactions via authorized members with the stock exchange who're also known as stock brokers.