How to invest in US Stock? US Stock Market

How to invest in US Stock? US Stock Market

Hello!! Friends, through this article, we will know what are US Stocks, how we can invest in US Stocks while living in India and which application will be best for investing in US Stocks, so that you can trade US Stocks very easily.

Investing in the US stock market can be an exciting and potentially rewarding end over. With its vast range of companies, industries, and investment opportunities, the US stock market provides investors with the chance to grow their wealth over the long term. If you’re looking to invest in US stocks, this article will guide you through the process, providing essential insights and steps to help you get started.

And if you have any doubt then you can ask us through the comment section. As we invest in India’s share market, many people think that we are International or we use Facebook, Netflix, Apple, Google, so how can we invest in it?

In this post, we will know about the US stock market, which are the indexes, which are the Stock Exchanges and how do they reduce, and how is it different from India, we will know how and how much to invest in US share as well. What are the benefits of investing in.

Reed More : https://moneyfreetips.com/prabhas-net-worth-2023/ 

US Share Market Timing

Timings	NYSE	NASDAQ
Primary market trading hours	4.00 AM to 9.30 AM (ET)	4.00 AM to 9.30 AM (ET)
Normal trading hours	9.30 AM to 4 PM (ET)	9.30 AM to 4 PM (ET)
After-hours trading	4.00 PM to 8 PM (ET)	4.00 PM to 8 PM (ET)

 

US Stock market Time as per India

The share market of US is also from 9:30 to 4:00 but according to our India it is from 9:30 to 4:00 from 7 in the evening to 1:30 in the night. So according to India, us share market time is 7:00 PM – 1.30 AM.

Stock Exchanges

 There are 2 Stock Exchanges in India in which shares are bought and sold and companies are listed.

1.BSE

2.NSE

There are also 2 Stock Exchanges in the US. Where trading takes place.

1.NYSE

2.NASDAQ

Index (Indices)

The way we have Sensex and Nifty in India, it is called index and from these two indexes the market can be ascertained whether it is down or up. The index of BSE is Sensex and the index of NSE is Nifty.

In the US (America), The Dow Jones Industrial Average (DJIA), NASDAQ, S&P-500, Russell-2000 (small cap tells the company) are all indexes.

Circuit Filter

In India, market crashes at 10% or 15%, hold is kept, that means the market does not close, but if the market crashes by 20%, then the market is closed there for the whole day.

In US this limit is 7%-13% and 20%.

Fractional Share Option

Fractional Share means any part of 1 share! Can we take 10th part or 5th part of any one share? No because in India minimum 1 share has to be taken. So this is not an advantage in India.

But in US you can buy Fractional Share like if a share is available for 50000 then you can buy 10th share of 5000.

Like in our India MRF’s share is very expensive, if there is a share around 45000 then you have to buy 1 share for 45000 but in US you can buy 10th share of a company for 4500.

Difference Between NYSE & NASDAQ IN US Stock Exchange

NYSE	Nasdaq
The oldest and first stock exchange of Us is established in 1792.	It is the world’s first and largest Electronic Stock Market, due to which we can buy and sell shares online today, from where else we can take shares of any national / international company, established in 1971.
Has a market cap of $25 Trillion.	Has a market cap of $20 Trillion.
2800 listed company.	3300 listed company.
Blue Chip and Industrial This type of company is listed.	Technology
Berkshire Hathaway, Alibaba Group Holding LTD, JPMorgan Chase& Co, ExxonMobil corporation, Wal-Mart Store, wells Fargo& Co., visa Inc, Procter & Gamble Co., A&T Inc., Pfizer Inc …. And so on such a company is listed with blue-chip.	Amazon, Apple, Microsoft, Google(Alphabet), Tesla, Facebook, Nvidia, PayPal, Netflix, Intel, Adobe, zoom and so on .
The company listed in this is not the same in Nasdaq. And the whole industrial is a blue chip company.	The company list in this is not the same in NYSE. And the whole IT is a technology company.
Many companies in India are listed in both NSE and BSE.	In US, a company is listed in only one exchange. And IT company and industrial such different types of company are in different stock exchange like industrial in NYSE.

 

Difference Between NYSE & NASDAQ IN US SHARE MARKET

 Us Stock Index

 THE DOWN

 The Dow Jones Industrial Average, DJIA, Dow-30, The Down is known by all these names. The Down Top 30 is an index of industrial companies. And Down-30 is an index like the performance of the top 30 companies of both NYSE and Nasdaq stock exchange.

NSE and BSE are two exchanges in our India and Sensex and Nifty are two indexes. And the index of NSE is Nifty, then the list of NSE shows the index of the same company, the same is of Sensex in BSE.

But it is not so in the US. Down 30 shows the index of the top companies of both the exchanges.

Dow-30 is a price weighted index, which means that the one whose price is more, the one whose price is less is given less weight, that is, the importance is more or less.

The NASDAQ (cover 2500+ companies)

Whatever is listed in NASDAQ in THE NASDAQ is the index of the company. Nasdaq is also the index of the Nasdaq stock exchange. And that is the index of the top 2500 company in Nasdaq.

But it also includes those outside the US which are listed in NASDAQ in the top 2500. The index that is in India represents the company of India only.

Nasdaq Market capitalization is weighted index, that is, whose market cup is more, it is top and the one which is less, it gives less value.

S&P 500

The S&P 500 is called the Standard and Poor’s 500. The S&P500 is an index of the 500 largest US public traders companies. It only keeps record of US company. And this is also a market capitalization weighted index, which means that the one whose market cap is high, it is top and the one which is less, gives less value.

Advantages In Investing In US Share Market

Investing in US stocks offers several advantages. Firstly, the US stock market is one of the largest and most liquid in the world, providing a wide array of investment opportunities across various sectors. Additionally, historically, the US stock market has shown a strong track record of long-term growth, making it an attractive option for investors seeking capital appreciation.

1.Diversification

You should not always put all your investment in one place, so by investing in US shares, you are reducing country risk a little, so that if something big happens in India, it will affect the whole market, so the loss from other countries is less.

2.Us Stock Market Have Out Performed Indian Stock Market

us stock market out of India’s chart means it gives more performances, if India’s market grows by 10 then us 20, India’s 20 then us 30. Means it gives better growth and retune than India, then all the money No, but some part should also be invested in us share.

3.Expose to High-tech companies

Compared to India, US tech company is better in growth, performance and also in retune, so we should have every type of company in our portfolio, then for that you can take US share like google, apple and amazon.

4.Advantage of depreciating RS

Our Indian rupee is decreasing in front of dollar, as earlier we had to pay 70 for 1 dollar and Now we have to pay 77, if we have to pay more then our rupee is getting depreciated.

So now if you invest, then you have to pay 77 and if it comes out even after 1 year, then the value of dollar which will be bigger with the sand will be beneficial. Just like you have Rs. Lion taken in 77 means 1 dollar will get 9% return if the share price of the company has increased and if it becomes 1$ = 81 then it will be a profit of 4.

 5.Fractional Share

Fractional Share means any part of 1 share! Can we take 10th part or 5th part of any one share? No because in India minimum 1 share has to be taken. So this is not an advantage in India.

But in US you can buy Fractional Share like if a share is available for 50000 then you can buy 10th share of 5000.

Like in our India MRF’s share is very expensive, if there is a share around 45000 then you have to buy 1 share for 45000 but in US you can buy 10th share of a company for 4500.

How to Invest in US Stocks?

Now know how you people can invest in America’s Share Market, then there are some Apps & Websites to invest in US Stock from where you can invest in US Stocks.

Groww – Through Groww App you can invest in both Indian and US Market and here if you invest money in US Stocks through Groww App from the link given below then you will also get a gift of 10$.

But here you can invest in US Stocks through Groww website, this function is not yet enabled in the App.

IND Money is also a very good app through which you can invest money in US Stocks as well as invest in India’s Share Bonds, Mutual Funds.

Conclusion

Investing in US stocks can provide individuals with an opportunity to grow their wealth over time. By following a well-researched investment approach, conducting thorough analysis, diversifying your portfolio, and staying informed, you can navigate the complexities of the stock market and make informed investment decisions.

FAQs

Can non-US residents invest in US stocks?

Yes, non-US residents can invest in US stocks. However, they may need to comply with certain regulations and tax requirements specific to their country of residence.

How much money do I need to start investing in US stocks?

The amount of money needed to start investing in US stocks varies. Some online brokers have no minimum deposit requirements, allowing investors to start with small amounts. However, it’s essential to consider trading fees and account maintenance fees that may apply.

Are US stocks a good investment for beginners?

US stocks can be a suitable investment option for beginners. However, it’s crucial to educate yourself about the basics of investing and exercise caution when selecting individual stocks. Consider starting with low-cost index funds or ETFs for broader market exposure.

How often should I review my portfolio?

Regular portfolio review is essential to monitor performance and make adjustments when necessary. Many investors review their portfolios quarterly or annually. However, the frequency can vary based on personal preferences and market conditions.

What is the difference between a market order and a limit order?

A market order is an instruction to buy or sell a stock at the current market price, while a limit order allows you to specify the maximum price at which you are willing to buy or the minimum price at which you are willing to sell.