create your own

How to buy shares through broker

64
rate or flag this page

By forlan



 

The situation of capital market is so busy. Every people walk around the market back and forth. For common people, the market exchange activity is the nutty activity. The common people must confuse enter the stock market. In the stock market, broker and trader do the trading stock. The broker could sell the stock or buy a stock that day. 

 

Not every people are allowed enter into market exchange. Only broker and specialist allows in the market exchange area.

Buying a stock is different with buying an apple. Every people can get apple directly with few pennies. On the other hand, an investor must order before buying a share through broker.

You must find great reputation broker with lower transaction fee because it could thrift your expenses. There are two kinds of broker i.e. discount broker and full services broker. Discount broker is the cheapest broker because they do not give you advice. On the other hand, full service gives guidance service to the investor. Full service broker allow you to get investment research that important to enrich the investor knowledge.

Open an account at a broker. There is three types of account i.e. cash account, option account, and margin account. The investor needs at least $ 250 to $ 10,000. The broker will ask what your desire. Then they explain the best stock for the client.

You can order broker specified stock. You must order before. This activity called market order. Give your desired price and amount of stock. Then your broker will order your price. If there is a seller, who want sell at same price with you price, you will get the shares soon.

Unfortunately, we rarely find the buyer bid and seller ask is fits. Therefore, a buyer should protect their money with limit order. They can set up limit to buy a share.

Alternatively, you can buy shares through online. Buying through online has increasing trend. In 1994, there were no online account brokers. Five years next, there were seven million online broker accounts.

Comments

RSS for comments on this Hub

No comments yet.

Submit a Comment

Members and Guests

Sign in or sign up and post using a hubpages account.


optional


  • No HTML is allowed in comments, but URLs will be hyperlinked
  • Comments are not for promoting your hubs or other sites

working