US Stock Market – How to invest in US Stock
In this article, we will understand how to do a US stock market investment. In this article, we will learn about the US stock market, which indexes are there, how many stock exchanges are there and how they reduce, and along with India, how can we invest in the US market and also in US shares.
US Stock market Time as per India
The US share market is also 9:30 to 4:00, but according to our India, 9:30 to 4:00 ie 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.
| Timings | NYSE | NASDAQ |
| Pre-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) |
Stock Exchanges
There are 2 stock exchanges in India in which shares are bought and sold and the company is listed, that is
BSE (Bombay Stock Exchange)
NSE (National Stock Exchange)
There are also 2 stock exchanges in the US. Where trading takes place.
NYSE (New York Stock Exchange)
Nasdaq (The Nasdaq Stock Market)
Index (Indices)
As we have Sensex and Nifty in India, it is called index and from both these indexes, the market can be found out whether it is down or up. The index of BSE is Sensex and the index of NSE is Nifty.
The Dow Jones Industrial Average (DJIA), NASDAQ, S&P-500, and Russell-2000 (indicates small cap company) in the US (USA), all are indexes of the US Stock Exchange.
Circuit Filter
In the Indian stock market, if the market crashes at 10% or 15%, they keep a hold, that is, the market is not tied, but if the stock market crashes by 20%, then the market is closed for the whole day.
In the US, this limit is 7%-13% and 20%.
Fractional Share Option
Fractional Share means any part of 1 share!
We cannot take the 10th part or 5th part of anyone’s share because a minimum of 1 share has to be taken in India. But in the US you can buy Fractional Shares which is an advantage, because if a share is available for 10000, then you can buy a 10th share for 1000.
As the share of MRF is very expensive in India, if there is a share of around 48000, then you will have to buy 1 share of 48000, but in the US, the same share can be taken 10th part of a company in 4800.
US Stock Index
Down
The Dow Jones Industrial Average, DJIA, Dow-30, and The Down are known by all these names. The Down Top 30 Industrial is the company’s index. And Down-30 is the performance index of the top 30 companies of both the NYSE and Nasdaq US stock exchange.
NSE and BSE are two exchanges in our Indian stock market and the two indexes are Sensex and nifty. The index of NSE is Nifty and the Sensex is BSE.
But this is not the case in the US stock market. Down 30 gives the index of the top company of both exchanges.
Dow-30 Price Weighted Index means that the one whose price is high, gives more weight to the one who has less, that is, the importance is more or less.
The NASDAQ (cover 2500+ companies)
Whatever is listed on the NASDAQ in THE NASDAQ is the index of the company. The index of the Nasdaq stock exchange is also Nasdaq. And that is the index of the top 2500 companies on the Nasdaq.
But it also includes those listed on the NASDAQ stock exchange outside the US stock exchange in the top 2500. Whatever index is on the Indian exchange, represents the company of India only.
S&P500 Index
The S&P500 is called the Standard and Poor’s 500. S&P500 is the index of the 500 largest US public traders companies. It only holds the record of a US company. And this is also the Market Capitalization Weighted Index (MCWI) i.e. the one whose market cap is higher, the top and the lower one gives less value.
Advantages of Investing in the US Stock Market
1. Diversification
Experts say that you should not always invest all your investments in one place, so by investing in US shares, you can reduce your risk a little, if there is some big market crash in India, which can affect the entire market, hence in other countries. You can reduce the loss by investing.
2. The US stock market has always outperformed the Indian stock market
Always US Stock Market has been giving better performance than the stock market of India. That is, the US gives good growth and retune from India, so not all your money, but some part should also be invested in the US share market.
3. Expose to high-tech companies
US tech companies give better retune than India, so we should have every type of company in our portfolio. You can take US share stocks like google, apple, and amazon.
4. There is one more benefit you can take advantage of the fall in the rupee
Indian Rupee is getting weak in front of the dollar, as earlier we had to pay 70 for 1 dollar and now we have to pay 82, so our rupee is getting depreciated.
5. Fractional Share
Fractional Share means any part of 1 share!
We cannot take the 10th part or 5th part of anyone’s share because a minimum of 1 share has to be taken in India. But in the US you can buy Fractional Shares which is an advantage, because if a share is available for 10000, then you can buy a 10th share for 1000.
As the share of MRF is very expensive in India, if there is a share of around 48000, then you will have to buy 1 share of 48000, but in the US, the same share can be taken 10th part of a company in 4800.
How to Invest in US Stocks Market?
There are some Apps & Websites to invest in US Stock Market from where you can buy and sell US Stocks.
Through Groww App you can invest in both Indian Market and US Market.
Through INDMoney App, you can also invest money in US Stocks as well as invest in India’s Shares, Bonds, and Mutual Funds.
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