What "share bazar" means and where to start

Share bazar is the term used in India, Pakistan, and other South Asian countries for the stock market — the place where shares (pieces of ownership in companies) are bought and sold. If you are in India, the two main share bazars are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). If you are elsewhere, your country has its own stock exchange with its own rules and tax treatment.

You cannot walk into a share bazar and buy shares directly. You need a brokerage account — an account with a licensed broker who sits between you and the exchange. The broker holds your money, executes your trades, and keeps records. Opening one is the first real step, and it takes a few hours to a few days depending on which broker you choose and how quickly you provide documents.

Before you open an account, you should understand three things: what you are buying (shares in real companies), what can go wrong (you can lose money), and what the tax rules are where you live (they vary significantly by country and by how long you hold the shares).

Key Takeaways

  • You need a brokerage account with a licensed broker to buy shares; you cannot trade directly on the exchange yourself.
  • In India, the main exchanges are the BSE and NSE; other countries have their own exchanges with different rules and fees.
  • Opening a brokerage account requires identity proof, address proof, and a bank account, and usually takes one to three business days.
  • Share prices move every trading day, and you can lose money if the price falls below what you paid; there is no may provide of return.
  • Tax on share profits (capital gains) is handled differently depending on how long you hold the shares and which country you live in.

Choosing and opening a brokerage account

A brokerage account is where your money sits and where your share holdings are recorded. In India, brokers are regulated by the Securities and Exchange Board of India (SEBI). Common brokers include Zerodha, Upstox, Angel Broking, and ICICI Direct, though there are many others. Each charges different fees per trade, offers different research tools, and has different minimum account balances (some have none, others require ₹10,000 or more).

To open an account, you will need: a valid government ID (Aadhaar, PAN, or passport), proof of address (utility bill, rental agreement, or bank statement), your bank account details, and sometimes a cancelled cheque from that bank. The broker will verify these documents, often through video call, and your account typically opens within one to three business days.

Once your account is open, you link it to your bank account. Money moves from your bank to your brokerage account when you want to buy shares, and back to your bank when you sell or withdraw. This link is usually instant or takes a few hours.

Understanding what you are actually buying

A share is a small piece of ownership in a company. If a company has 1 million shares outstanding and you own 100 of them, you own 0.01% of that company. When you buy a share, you are betting that the company will do well and other people will want to buy that share from you at a higher price later.

Share prices change every trading day based on what buyers and sellers think the company is worth. If the company reports good earnings, the price often rises. If it reports losses or faces a scandal, the price often falls. You make money if you sell at a higher price than you bought. You lose money if you sell at a lower price. If you hold the share and never sell, you have a paper loss or gain, but no actual money in or out of your pocket until you sell.

Some companies also pay dividends — small cash payments to shareholders, usually once or twice a year. A dividend is not may provide, and not all companies pay them. The dividend amount and timing depend entirely on what the company decides.

How to place your first trade

Once your brokerage account is funded, you log into the broker's app or website and search for the share you want to buy. Shares are identified by a ticker symbol — for example, TCS (Tata Consultancy Services) or INFY (Infosys) on the NSE. You enter the number of shares you want to buy and the price you are willing to pay (or you accept the current market price).

Your order goes to the exchange. If there is a seller willing to sell at your price (or lower), the trade happens instantly. If not, your order waits in a queue until someone sells at your price or you cancel it. Once the trade is complete, the shares appear in your account and the money leaves your bank account (or brokerage cash balance).

To sell, you do the same thing in reverse: search for the share you own, enter how many you want to sell, and confirm. The money from the sale goes back to your brokerage account, and from there you can withdraw it to your bank or use it to buy other shares.

Costs and fees you will pay

Every trade costs money. Brokers charge a brokerage fee per trade — this might be ₹20 per trade, or a percentage of the trade value (like 0.05%), depending on the broker. Some brokers offer zero-brokerage accounts where you pay nothing per trade, but they make money other ways (like charging for premium research or lending you money to buy shares).

Beyond brokerage, you pay exchange fees (small, usually ₹0.01 to ₹1 per trade), clearing fees, and Goods and Services Tax (GST) on the brokerage fee itself. If you buy ₹10,000 worth of shares at a broker charging 0.05%, you pay ₹5 in brokerage plus 18% GST on that (₹0.90), for a total of ₹5.90 in fees for that one trade.

If you sell at a profit, you also pay tax on the gain. The amount depends on how long you held the share. In India, if you hold for less than one year, the gain is taxed as short-term capital gains (at your regular income tax rate). If you hold for one year or more, it is taxed as long-term capital gains (at a lower rate, currently 10% for gains over ₹1 lakh). Tax rules vary by country, so check your local rules before you start.

Risk: what can go wrong and how to think about it

The biggest risk is that the share price falls and you lose money. If you buy a share for ₹500 and it falls to ₹400, you have lost ₹100 per share. That loss is real the moment you sell, and it is permanent. There is no insurance, no government may provide, and no way to get the money back except by waiting for the price to rise again (which may never happen).

A company can also go bankrupt. If that happens, shareholders are last in line to get paid — creditors and employees get priority. In many bankruptcies, shareholders get nothing.

You can also make emotional mistakes: buying when prices are high because everyone is excited, or selling when prices are low because you are scared. These mistakes often lock in losses and cost more money than the market itself does.

To manage risk, many people spread their money across many shares (so one bad share does not wipe them out), hold for the long term (so short-term price swings matter less), and only invest money they can afford to lose. None of these guarantees you will not lose money, but they reduce the chance of a catastrophic loss.

Frequently Asked Questions

How much money do I need to start investing in shares?

Most brokers have no minimum account balance, so you can open an account with ₹0. However, the smallest share price on the NSE or BSE is usually around ₹1 to ₹2, and most people buy at least ₹500 to ₹1,000 worth of shares per trade to make the brokerage fees worthwhile. Start with whatever amount you can afford to lose without affecting your daily life.

Can I lose more money than I invested?

If you are buying shares outright (not borrowing money to buy them), you can only lose what you invested. If you borrow money from your broker to buy shares (called margin trading), you can lose more than your initial investment. Most beginners should avoid margin trading until they understand the risks.

How do I know which shares to buy?

That depends on your research and your strategy. Some people read company financial reports and news. Others follow analysts' recommendations. Some use apps that screen shares based on price, earnings, or other metrics. There is no single right answer, and different approaches work for different people. Start by learning about a few large, well-known companies before you invest real money.

What is the difference between the BSE and NSE?

Both are legitimate exchanges in India regulated by SEBI. The NSE is larger and has more trading volume. Most brokers let you trade on both exchanges from the same account. For a beginner, the difference does not matter much — focus on which shares you want to buy, not which exchange they are on.

Do I have to pay tax on shares I have not sold yet?

No. Tax is only due when you sell and realize a gain (or loss). If you hold a share that has gone up in value but you have not sold it, you owe no tax on that unrealized gain. Tax is due only when you actually sell and the money enters your account.