How are stocks bought and sold?

Question

This is for a research project. I have to explain how stocks are bought and sold. Does anybody know a web site I can go to, to obtain this information?

Answer 1

Basically you can use a full service broker or discount broker. You find the discount brokers like Scottrade, e.trade, and others on the web. Or full service brokers like Merrill Lynch or Price Waterhouse by looking in the phone book. Some banks also have brokers associated with them. Just walk into your bank and ask.

If you know what you want to buy, go with a discount broker. If you need advise, depending on how much money you have, you can use a financial planner or a full service broker for advise. Be wise though, many are just sales persons not true advisors.

Buy some books by Suze Orman. Don't invest until you understand more. Even then start out with some good solid mutual funds. Yahoo fiance has good discussions of mutual funds plus information on selecting mutual funds. Smartmoney.com also has good information.

Answer 2

Most stocks are traded on exchanges, which are places where buyers and sellers meet and decide on a price. Some exchanges are physical locations where transactions are carried out on a trading floor. You've probably seen pictures of a trading floor, in which traders are wildly throwing their arms up, waving, yelling, and signaling to each other. The other type of exchange is virtual, composed of a network of computers where trades are made electronically.


The purpose of a stock market is to facilitate the exchange of securities between buyers and sellers, reducing the risks of investing. Just imagine how difficult it would be to sell shares if you had to call around the neighborhood trying to find a buyer. Really, a stock market is nothing more than a super-sophisticated farmers' market linking buyers and sellers.

I should distinguish between the primary market and the secondary market. The primary market is where securities are created (by means of an IPO) while, in the secondary market, investors trade previously-issued securities without the involvement of the issuing-companies. The secondary market is what people are referring to when they talk about the stock market. It is important to understand that the trading of a company's stock does not directly involve that company

Stock prices change every day as a result of market forces. By this we mean that share prices change because of supply and demand. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall.


Understanding supply and demand is easy. What is difficult to comprehend is what makes people like a particular stock and dislike another stock. This comes down to figuring out what news is positive for a company and what news is negative. There are many answers to this problem and just about any investor you ask has their own ideas and strategies.

Answer 3

Go to TradeKing.com The ask price is what you can buy a stock for. the bid price is the price you can sell a stock for. when the bid price rises and you sell at a higher price then you paid for it then you make money they charge $5 to buy and $5 to sell so 10 commission total. You do a limit order and they will buy it for the price you put in.for pretend you have to put on your paper the ask price.

Answer 4

This only applies if you live in the UK!

To buy or sell stocks and shares you need to do so either through a stockbroker or ask your bank if they can act on your behalf.

Answer 5

try www.asx.com.au or www.comsec.com.au for australia - its all computerised - either you see a broker or get registered on a website which allows you to buy and sell. goodluck with your project