Fisrt off, Where do you go to buy stock? Online? Second, how instantly once you buy a stock sell it? When purchasing a stock, are there fees? Lastly, are there taxes on the money you gain in the stock market or selling fees?
2007-02-25 23:15:42 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
1. You open an account with an On Line Broker. There are many. Fidelity. Scottrade. Ameritrade. Many many more. Do some research and figure out which one works for you. Some have minimums on how much you can open an account with.
2. Once you have an account open, as long as you have funds in your account to purchase stock, it usually takes anywhere from a few minutes to an hour or so to get a confirmation that you have the stock after you initiate a buy order. I put in a buy order at 3:54 last Friday and got my stock before the market closed at 4:00.
3. There are commissions to the stock broker. A commission when you purchase and one when you sell. I've heard there are some on line trading places that don't charge a commission but I don't know who they are and that doesn't make sense to me since I don't know how they'd stay in business if they're not charging a commission.
4. You pay capital gains taxes when you sell the shares. If you hold them less than a year, you pay short term capital gains (higher rate). If you hold them more than a year, you pay long term capital gains (lower rate). You can deduct losses against the capital gains if you sell a stock and take a loss. You can also deduct the commissions from the capital gain.
5. And you didn't ask this but the answer is, go learn about the stock market and investing in general before you try investing or you will lose your shirt. Read "The Stock Market for Dummies". There are a ton of other books that can educate you. There are also a ton of websites but be careful of some of the websites. Some are good and some are basically trying to get your money and you won't get much education from them.
2007-02-25 23:44:49 · answer #1 · answered by Faye H 6 · 1⤊ 0⤋
FIRST: Your interest in stocks is a healty and excellant way to purse financial freedom. CONGRATULATIONS!
However.............................
You're asking the wrong questions. You sound like you expect to make big money in stocks without knowing anything about them.
The first question should be: "How do I learn about Stock Investing?". The questions you ask show that you're only interested in the mechanics of the buy/sell and the consequences of selling a profit. If you weren't a gambler you'd be asking other questions & reading everything you could get your hands on. Your current direction is self-destructive.
I don't say this to be mean. I say this because you're typical of a lot of people that get "burned" in the stock market. I'd bet that you think "penny stocks" are a way to a fortune or (worse) that "day trading" is easy.
Please take another approach before you do damage to your savings.
2007-02-25 23:42:48 · answer #2 · answered by Common Sense 7 · 1⤊ 0⤋
Well, you should learn about the stock market first. There is a good write up on online investing at www.smartmoneyclick.com It was written by an individual not a company. Interesting take
2007-02-27 11:26:35 · answer #3 · answered by Domino 4 · 0⤊ 0⤋