Do I have to pay a broker to buy some stock for me?

Question

Can I stroll over to the New York Stock Exchange and just buy 10 shares of Google? Why doesn't it work this way?

(I asked this question a week ago but Yahoo deleted it for some reason? Apparently I got 7 answers and am not able to view them! So if you answered before I wouldn't mind seeing your answer this time!!!)

Answer 1

To be able to buy or sell shares you must be a licensed broker.These are normally corporations eg; Goldman Sachs, Merrill Lynch. For you to buy your Google shares you will need to open an account just like a bank account. For a small parcel of shares you might want to consider buying thru an online broker. Do your research first, as there are some dodgy places looking to fleece first timers.

Hope this helps
Sharon

Answer 2

A fair number of companies have stock plans called DRIPs Dividend Re-Investment Programs. You can buy the stock directly from the company and continue to add money regularly or as you have it if you want to. When the stock pays a dividend it is automatically used to purchase more stock. So a search on DRIP stocks and find some.

One disadvantage is you have no control withing 3-7 days of the timing for buying or selling the shares. If you are investing for the long term, as you should with these kinds of stocks, this should not be a big issue.

But no, you can't just walk into the stock exchange and pick up a few shares.

Answer 3

Well, the stock market is not like the grocery market where you buy your goods with no commission attached.

I currently have a 100 shares of the XYZ company and I also learned that you are willing to buy them. Well, unfortunately you can not simply give me the cash and I give you the shares. We both have to go to the exchange and even there we can not do it directly, we need brokers to represent us to the exchange and complete the buy and sell for us.

Any other way of trading is illegal.