How does the process work to buy a stock?

Question

first u study the stock and do research on it.
how do u purchase it online or in person?
whats involved in the transaction?
what do i do when i want to trade or sell it?

Answer 1

There was a commercial series begun years and years ago. When V-8 Juice was competing for the then-popular tomato juice habit, they showed someone drinking tomato juice at a restaurant or at home, then someone else walks by with V-8 juice. The tomato juice drinker bops himself on the forehead and says, "I could have had a V-8!"

You read your paper tomorrow and do a V-8 bop and say, "Hey, Apple may have something!" You then check your bank balances and say, "Hmm, I can scare up a little extra cash, like $500 to $2,000." Then you go shopping for a Scottrade or Schwab or Edward Jones brokerage nearby. You fill out some papers to open an account, hand over a check, and they give you directions on how to trade online (for cheaper) or call them to do the full broker trade thing. Once the check clears and there is money available, then you find the box online that says price quote, type in "AAPL", or click the "symbol lookup" and type "apple". Then they will say it was last trading for something around $131-ish. You look at the available money, subtract the amount of a commission ($7 at Scottrade), then divide the remainder that you intend to invest by the $132 or whatever, to tell you about how many shares you want (about 3 if you only put the minimum in at Scottrade). Click on the button that says "Trade", enter 3 (or whatever) for the number of shares, then click to approve. For something like this, they will tell you about what the total will be, if okay, you click again. It gives you a reference number for your order, which you can print out for your records. Click approval, and you go to the home screen where it likely shows already that you own 3 shares (or whatever) of Apple Computer--and a piece of the action (a very tiny piece) in a very, very profitable enterprise.

Not hard at all.

Answer 2

You can buy and sell either using a traditional stock broker or setting up an online account with a brokerage firm like eTrade or Charles Schwaub. Either way you will need to place a certain amount on money into the online account or with your stockbroker from which you can buy and trade. You will have to pay straight fees for each transaction or a percentage of the total amount. You can sell it the same way and this also has fees. I would recommend learning more about stop/loss orders, possibly index funds and mutual funds from established brokers too. You also need to consider your time horizon to hold the stock. The stock market is a secondary market since you are buying the stock not from the issuing company so you will not get the actual stock certificate.

Answer 3

First you need to sign up with a brokerage house. Example: ScottTrade.com then fund your account with a check or money order. Then research the stocks. When you find one the site will guide you how to purchase it. Remember buy low sell high!

Answer 4

Buying/promoting is the equal, however what you ought to understand is who will get the dividend and the way that influences the rate. You need to be the landlord of list at the correct day to get the dividend, however there's a three trade day cost time for shares, so that you truthfully ought to purchase it a minimum of three days earlier than that. So to hold matters realistic you ought to fill an order to shop for the inventory earlier than ex-dividend date and no longer input an order to promote it earlier than ex-dividend date. Then you might get the dividend despite the fact that it does no longer pass into your account till someday later. However, the inventory rate is more likely to open on ex-dividend date down by way of the quantity of the dividend, so that you can't make a speedy greenback purchasing and promoting correct round dividend date for the dividend by myself. So it's extra for long run in which both you wish to have the present dividends, otherwise you purchase the inventory, DRiP it to shop for extra inventory together with your dividends, as a way to supply you slightly extra dividend subsequent time, etc. Some agents will do dividend reinvestment at no cost, so you'll be able to acquire increasingly dividend paying inventory at no cost. However, maintaining monitor of the price of fractional stocks bought with dividends may also be an accounting nightmare, except it's in a retirement account in which you don't need to monitor that.

Answer 5

you can also look up DRIP funds and buy stocks direct from the company ,or a bank that manages their sales. It is a snail mail of buying but the costs are low. (dollar cost averaging is a way to go) look up D.R.I.P