How To Buy Stock?

Buying stock is like buying ownership in the basic corporation. For example- if ABC Corporation has issued 100 shares, and you buy 1 share, you have purchased a 1 percent ownership stake in ABC. First step in buying shares- decide who will help you to buy them, i.e. you have to select a middle man who will be a share broker. There are two main types of share brokers, full service brokers and discount brokers.

Full service brokers give financial planning and advice once you select investments such as stocks and mutual funds. You can visit many such offices where you can find full service assistance. This way of buying shares is the most expensive, you will pay around $70 to buy and sell a batch of shares.

Discount brokers allow investors to do their own research and make their own investing decisions. They usually do not have local offices; they operate online or through phone. They are almost $20 cheaper then Full-service broker for buying or selling a batch of shares.

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