Originally posted on https://www.klkntv.com/story/40071142/how-to-buy-stock-a-personal-finance-guide
You’ve read about the stock market, followed its ebbs and flows and you’re ready to take the plunge.
Though it can be a complicated field to navigate, investing can be lucrative if you know how to do it right.
Wondering how to buy shares in a company? The process is simple when you know where to look and who to connect with.
Today, we’re sharing a few simple steps to get your feet wet and how to take the next step from here.
Ready to learn more? Let’s go!
Unless you’re highly skilled and experienced in the stock trading realm, the easiest way to buy stock is through a broker.
Thanks to the proliferation of digitalization into almost every facet of our lives, you can now choose to work with an online brokerage firm or face-to-face with an in-person professional.
Many major brokerages will enable you to do both, so you can manage your funds electronically but also come in for an in-person consultation as required. Make sure your broker comes with plenty of positive recommendations and referrals before signing on the dotted line.
Your broker will help guide you in the direction of the best-performing stocks.
Using resources including historical analyses, future forecasts, and stock market news reports, he or she can reveal the best stocks to buy that fit your risk tolerance and long-term investing goals.
Once you’ve decided which stocks to purchase and the quantities to go with, your broker will perform the trade on your behalf. In-person brokers normally earn a commission of a few cents per share. If you opt to work within an online trading site, those fees can be lower.
Next, you’ll determine whether you want to place a market order or limit order. While there are pros and cons to each avenue, here are the basics to know.
Placing a market order means you’re making your buy or sell order to be placed immediately, following the current market price for that share. You don’t need to wait for the price to drop to start.
Placing a limit order means you’re willing to wait on your purchase until the stock price meets your limit. For instance, you may wish to buy Apple stock at $150 per share. Yet, its current share price is $175. With a limited order, you’ll wait until it reaches $150 to make your move.
In some cases, you can save money by buying your company shares directly from the company itself. You can cut out brokerage fees by going this route, and save money on commission and related costs.
Knowing your way around the stock market can be a great way to grow your income and plan for your financial future.
Now that you know how to buy shares in a company, you may be ready to explore more of our money-related posts. The more you know, the more you can earn so start reading!
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