How To Buy Stock?

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asked 3 years ago

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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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Nyala

answered 3 years ago

Yes, this comment is absolutely correct. I just wanted to add a way that helps you be your own broker. Its cheaper, but its not like a "discount broker" as described above. Its quite easy to buy high-quality, dividend paying stocks. The method is through direct investment plans or DRIPs. You don't even have to open a brokerage account, which usually means that you need to have at least $1000. You can go to DIRECTINVESTMENTS.COM and get more information, but basically they do all the legwork to get an account open in your name at the companies. You buy at least a single share of stock (or as many as 100 shares) from them. Then they get you on the books and records of the company as a shareholder and after that you can invest in the company directly if you want buy more shares--without going to a stock broker!!!! If you pick the right companies, there won't be any fees if and when you want to buy more shares of the company. Everything about every company that accepts direct investments is described at the website...www.directinvesting.com

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Yazmyn

commented 1 year ago

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