English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

2007-02-16 08:50:43 · 6 answers · asked by Jay 1 in Business & Finance Investing

6 answers

Send me some money and I'll send you some stock!

Seriously if you have to ask you need to wait a while until you understand what you are doing.

The simple answer is open an online account and buy something.

2007-02-16 08:56:15 · answer #1 · answered by Nusha 5 · 0 1

Buying Stock
When you buy stock in a company like General Electric, you are actually a part owner of the company, but the influence you have over the company as a stock holder is rather indirect. As a stock holder, you can't walk onto a manufacturing floor and start giving orders, but you can show up at shareholder meetings and vote. You can also vote with your pocketbook by either buying or selling the company's stock and, in some small way, influencing the stock's price.

How can you buy stock? The most common means is through a stock broker. Whether they are a full service or discount broker, they are all doing one thing: arranging the transfer of stock from a seller to a buyer. Most of the trades are actually done through brokers listed with a stock exchange such as the New York Stock Exchange.

There are many different stock brokers to choose from such as full service brokers which usually charge more per trade, but give investment advice or more personal service; the discount brokers which offer little or no investment advice but charge less for trades; or your bank or credit union that may have a deal set up with either a full service or discount broker. Usually there is a minimum amount such as $500 that must be put into an account and there will be a fee, or commission, per trade. There is a trading fee associated with buying the stock and their is a fee associated with selling the stock.

So after your account is set up, just give your broker a call and ask to buy so many shares of such-and-such company. The fees associated with the trade are anywhere from $7 on up depending on the type of order, the amount of stock purchased and the broker. If you have an account, the money for the stock price and the trade will be deducted. Or if your broker doesn't require an account with a minimum balance, you will be billed for the stock price and trading commission.

There are other ways of buying stock besides through a broker. One way is directly from the company itself. If you own at least one share in certain companies (usually very large companies), you may be able to purchase shares directly from the company through their investor's relations departments. But, that initial share of stock in the company will have to be obtained through a regular stock broker. Another way to buy stock in companies is through Direct Public Offerings which are usually sold by the company itself. A direct public offering is an initial public offering of small companies in which the stock is purchased directly from the company, usually without the aide of brokers.

If you purchase stock that is listed on an exchange such as the New York Stock Exchange or the NASDAQ/AMEX, these stocks have a ready market already established, and there shouldn't be any problem selling the stock at a later date. There are some stocks, however, that do not necessarily have an after market set up for them. Direct public offerings are a good example of stocks that typically don't have secondary markets, since the companies are usually too small to be listed on most stock exchanges. So, the moral of this story is that just because you buy a share of stock, any stock, doesn't guarantee you that the stock can be sold later on.

Now you own part of a company, what do you do? Probably nothing. Hold on to the stock and hope the price keeps going up, so when you retire you can afford that condo on the beach. And if the stock price starts heading down, just remember that even the best companies go through slumps. If you researched the company well and have confidence in the management and the company's products or services, it should do well. But if not, you may be paying your broker to sell the stock for you.

And yes, you can loose every bit of your money invested in a particular stock. But if you invest in enough different stocks, or you maintain a "portfolio" of stocks, your chances of loosing everything diminishes with each different company's stock you own. One stock price may collapse, but the chances of a bunch of stock prices collapsing are low. And if a large number of stock prices do collapse, you probably won't have to worry about the money you lost since the economy will be in a deep depression, and even money itself won't do you any good.

A good review of what drives stock prices and strategies for investing in stocks is given in A Random Walk Down Wall Street, conveniently located in our bookstore. There is an almost overwhelming number of books and resources on investing in the stock market, some of which are available in our bookstore. But please before you do invest, research the broker, the company you're about to invest in, and the stock market itself. Knowledge pays the highest dividends.

2007-02-16 16:54:38 · answer #2 · answered by kosmoistheman 4 · 0 0

you can buy stocks with help of stock broker.you can select the stocks of your choices and ask them to buy for you.To learn more about how to pick the best stock,check the website link below.
Hope it helps.
http://money-review-site.com/shares.html

2007-02-16 18:02:46 · answer #3 · answered by Anonymous · 0 0

check on my blog

install aptistock freeware

2007-02-17 11:55:54 · answer #4 · answered by dinu_pawar 5 · 0 0

check this site www.etrade.com

2007-02-16 16:56:28 · answer #5 · answered by Feras S 1 · 0 0

fedest.com, questions and answers