Lets say I want to buy some stock, can I call a broker and say I want "100" shares and pay the guy and his fee. And then three weeks later call and sell, and make that difference if it goes up. This may sound dumb, I want to know if theres more to it than that.
2006-09-25 09:41:08 · 7 answers · asked by boardr 1 in Business & Finance ➔ Investing
Yep, it's pretty much as simple as you describe. However, remember that you will be paying a commission for each transaction. So, you will pay the fee when you buy and you will pay the fee when you sell. So, in order to make a profit your stocks must go up enough to cover both commissions. Also, remember that you will have to pay tax on any profits you make.
If you want to pick your own stocks I suggest opening an account with an on line "discount" broker. The have smaller fees and you can trade very quickly on line. Personally, I have been pretty happy with eTrade.
2006-09-25 09:46:41 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First of all, I would suggest that you don't use a regular broker. They charge high fees for buying and selling stock and even worse, will try to sell you things.
Open an account with Fidelity or other online brokerage. Deposit some cash in that account. You will get money market rates of interest for your cash.
After doing your research, you can place your stock order on line. The shares that you buy will be placed in your account and the cash taken to cover the cost of the shares plus the fee to do the transaction. (that varies depending upon the amount of cash and stock you have on deposit and the number of trades your make) Let's just say that you should be able to buy a 100 shares for $15 to $25.
After the settlement date (3 days) your stock holding will show in your account. You can then place a sell order at any time. The stock will be sold and the cash put in your account.
One thing to keep in mind is that short term gains (from sales of stock held less than one year) are taxed at your regular tax rate. Gains made from sales of stock that you hold for over a year are taxed at 15%.
Once you have an account, you can buy and sell at will, but will want to have cash in your account to settle all purchases or else you will have to find a way to get the cash to the broker in 3 days.
2006-09-25 09:49:46 · answer #2 · answered by united9198 7 · 0⤊ 0⤋
That's how the system works. You have to pay a fee when you buy and pay a fee when you sell. There are no limits on how often you buy or sell.
Day traders buy and sell stocks in one day. They start out with cash and end the day with cash; maybe less but sometimes more.
2006-09-25 09:46:24 · answer #3 · answered by regerugged 7 · 0⤊ 0⤋
hey, you have said the right thing my friend. your question is not at all dumb. it proves that you have little information on how the market works !!!!!
cheers !!!!!!!!!!!
yup. you can do so. nothing is wrong. for this procedure to take place you need to have an account of yours with a registered broker.
all the best
do well
2006-09-26 00:24:35 · answer #4 · answered by renireyo 2 · 0⤊ 0⤋
That's it. It's that simple. But remember, when calling your broker tell him your MAXIMUM price you are willing to pay per share. Otherwise he/she will buy at ANY price. Make him/her sweat his/her commission. Be smart. Trade for profit.
2006-09-27 14:03:34 · answer #5 · answered by Borat2® 4 · 0⤊ 0⤋
What do you propose by ability of " lots envisioned and envisioned crash... of inventory industry". have been you the single awaiting this? have you ever invested interior the markets? if so, have you ever gained lots? i are not getting the rational to your question! Mr. you're able to do slightly diagnosis! i think of that on the instant become purely yet another "down" day interior the markets brought about by ability of a protracted haul by ability of the housing and credit disaster!
2016-10-17 23:15:05 · answer #6 · answered by ? 4 · 0⤊ 0⤋
yes you can and sell after 24 hours
2006-09-28 23:23:40 · answer #7 · answered by Anonymous · 0⤊ 0⤋